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Teacher Mortgages – comparing your options
Busy teachers often find it difficult to make time for ‘life admin’ – like finding and comparing mortgages. The good news is that Teacher Mortgages are usually easy to find and you should get good rates.
Are there special mortgages for Teachers?
No, there aren’t any specific mortgage products just for teachers, but many mortgage lenders regard teachers as good customers. In the past, the government proposed key worker mortgages for NHS staff, teachers, and other public sector roles. These stopped operating in 2019.
More positively, many mortgage companies actively encourage applications from teachers. Some make special allowances in how they assess mortgage affordability for teachers, taking your future earning potential into account.
How much can I borrow on a Teacher mortgage?
Lenders will generally offer around four to five times your salary in a mortgage loan.
Use a mortgage calculator to see how much you might be able to borrow and what the repayments on your mortgage could be. It’s very important that these payments are comfortably affordable and that you don’t overstretch yourself.
You will need to have a good credit history for the most suitable mortgage rates and offers.
NQT and Supply Teacher mortgages
Newly Qualified Teachers are often worried about how they will get on the property ladder – especially as their income during training may have been low. Plus, NQTs are also often on probation or temporary contracts which are off-putting to some lenders.
But many mortgage companies will recognise your potential as an education professional. As a qualified Teacher, your skills will be in great demand and you are likely to have a successful and well-paid career. Some lenders will take this future success into account and offer you a competitive mortgage deal.
Meanwhile, supply teachers can worry about finding a mortgage based on a less consistent income, or if they are Self-Employed. Fortunately, some lenders are comfortable offering supply Teacher mortgages. You will just need to show some evidence of your income in the past couple of years.
First Time Buyers, Buy to Let and Remortgaging as a Teacher
In general, teachers can usually find a good mortgage deal, no matter whether they are First Time Buyers, moving home, remortgaging, or purchasing a Buy to Let property. As long as your credit score is healthy you should find some suitable products.
As a general rule, Buy to Let mortgages have higher interest rates than residential mortgages and usually require a larger deposit. They are not regulated by the Financial Conduct Authority.
Help to Buy for Teachers
Various government-led Help to Buy schemes could help you to buy a home. For example, the Help to Buy Equity Loan could enable you to buy a new-build home with just 5% deposit, with the government loaning you the funds to reach 20%.
Meanwhile, under the Shared Ownership Scheme, you can buy a 25% to 75% share of a home and pay rent on the rest. You can increase your share over time.
Mortgage Protection products
Buying a home is a major financial commitment, so there are various products that can help you protect your family, the home, and your property.
You may need life insurance as part of your mortgage contract, as your cover repays the loan in the event of your death. Your bank or building society will also want proof of buildings insurance, which covers the cost of rebuilding the property if needed.
Other products might prove valuable to you, such as contents insurance, income protection, and critical illness cover. We can explore these options with you as necessary.
How can a Mortgage Broker help with Teacher Mortgages?
Here at First Thought Financial, we’ve helped many teachers to secure a mortgage. We will get to know you and your property plans, and recommend lenders that welcome applications from teachers. Then, we’ll compare all the suitable mortgage products and help you decide how to move forward.
Our mortgage advisors will also manage the mortgage application on your behalf. Ultimately, we do all the legwork for you: researching mortgages, comparing rates and fees, applying, and then chasing up all the people involved in buying your property. Contact our registered office today to start your mortgage journey.
We are an Appointed Representative of Quilter Mortgage Planning Limited, which is registered in England & Wales and fully authorised and regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.