Teacher Mortgages

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What You Should Know About Teacher Mortgages

Are there special mortgages for teachers?

There are no specific mortgage products that are designed for teachers and teaching staff, however, there are lenders who specialise in providing mortgages for them. As a teacher, particularly if you find a lender that is sympathetic to the needs of teachers, there are a range of benefits that you may be entitled to.

Do I qualify for special rates?

Both those lenders who specialise in lending to teachers and more general mortgage lenders often offer discounts and reduced mortgage interest rates to teachers and similar employees working with the education sector. 

These benefits are by no means standard and will vary between lenders. In order to obtain a mortgage with this type of benefits, you will usually need to be employed on a part time, full time or temporary contract basis as one of the following:

  • Newly qualified teacher (NQT)
  • Fully qualified teacher/lecturer
  • Teaching assistant (NVQ level 3)
  • Supply teacher
  • Nursery nurse (NVQ level 3)
  • Children’s therapist
  • You may qualify if you receive an educational grant or bursary of any kind

Teacher mortgages for First Time Buyers

Teachers can expect a similar experience as any other First Time Buyer. You’ll need to meet the same affordability criteria as any other applicant and undergo checks on your credit history, however, as a trusted profession, teachers sometimes experience more leniency in terms of proof of income.

In recent times First Time Buyers have sometimes needed to supply a larger deposit in order to secure a mortgage, however, the introduction of the Mortgage Guarantee Scheme should provide more First Time Buyers access to 95% Mortgages. If you struggle to satisfy the criteria for a standard residential mortgage, there are also a range of government home ownership schemes that can help you get onto the property ladder:

Help to Buy

With this scheme, you borrow an equity loan of upto 20% towards your deposit. You need to provide 5% deposit yourself, but in total, you will have up to 25% deposit (45% in Greater London) which enables you to achieve a 75% Loan to Value mortgage.

NewBuy

The NewBuy scheme is another way to achieve a high Loan to Value mortgage of  95%, but it’s only available if you purchase a new build property up to the value of £250,000 (£450,000 in London). You will need to provide a 5% deposit, but benefit from a reduced interest rate.

Shared Ownership

As you can probably guess, the Shared Ownership Scheme allows you to buy a share of a property. This makes the loan amount lower and therefore the mortgage is both more affordable and more achievable for those on lower incomes or with lower credit scores.

Does my teaching status affect my application?

Newly Qualified Teachers

As a newly qualified teacher, mortgage applications can be slightly more difficult, as you can be on short term contracts for some time before establishing a permanent position. You are likely to benefit from contacting one of the independent banks or building society lenders that offer specialist NQT mortgages.

Supply Teachers

Supply teachers will also benefit from using the type of mortgage lender who specialises in mortgages for teachers. As a supply teacher you can improve your chances of securing a mortgage if you are able to prove that you’ve had at least a year of continuous employment.

Retired Teachers

As a retired teacher, you won’t face any additional barriers than other retirees would. Your full teacher’s pension is used to determine your loan, but you should bear in mind that your age will be considered alongside your income.

Mortgage protection products

Many teachers have additional benefits as a part of their employment package, which can include employment and mortgage protection policies. It’s worth mentioning such policies when you apply for a mortgage, as they can be looked upon favourably by lenders.

As a side note, employee related insurance policies have their limits, so it’s wise to check whether they provide adequate mortgage protection cover.

How can One Mortgages and Protection help teachers to find a mortgage?

At One Mortgage and Protection, our Mortgage Brokers specialise in helping teachers and other educational professionals to find those Mortgage Lenders who are sympathetic to their needs. It’s important to ensure that you take full advantage of any benefits that you may be entitled to as a teacher, and our wide view of the mortgage market makes it easier for us to find the mortgage deal that suits you best.

We know that teachers and staff in the education sector can work long, stressful hours, so our advisers will work around your lifestyle and availability to be there when you need us. The last thing you want is more paperwork, so we’re happy to take care of as much of the administrative burden as we can, and help your mortgage application process run smoothly.

Your home may be repossessed if you do not keep up repayments on your mortgage

Why One Mortgages, Protection and Estates?

Call us now on 0113 208 3308

to find out more or arrange a consultation.

Based in Leeds, One Mortgages & Protection Limited offers impartial and unbiased advice to customers UK wide, no customer is too far away to help.