Teacher Mortgages

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What You Should Know About Mortgages For Teachers

Are there special mortgages for teachers?

Teacher specific mortgage products don’t currently exist, however, there can be huge advantages offered to teachers and other education professionals, from the right lender.
Whilst the key worker mortgage no longer exists, a range of other home ownership schemes are available to teachers looking to get onto the property ladder.

Do I qualify for special rates?

There are many mortgage lenders who offer discounts and reduced mortgage interest rates to teachers. There are even specialist lenders who cater exclusively to teachers and educational employees. These lenders are more likely to offer special mortgage deals.

In order to qualify for such benefits, you usually need to be employed either part or full time 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

They also ordinarily apply to those in contract roles or receiving any type of educational grant or bursary.

Teacher mortgages for First Time Buyers

As a First Time Buyer, teachers do not experience any additional barriers than other first time buyers. You may be offered a standard residential mortgage with those additional benefits mentioned above. However, you will still need to meet the affordability criteria. A mortgage calculator can be helpful to get an idea of whether this is an option for you, but our advisers can offer you more accurate mortgage advice tailored to your individual circumstances.

Those who struggle to meet the criteria for a standard residential mortgage may benefit from one of the following government home ownership schemes:

Help to buy

The Help to buy scheme gives you access to a help to buy equity loan of 20%, which means you’ll only need to find a 5% deposit to achieve a 75% Loan to Value mortgage.

NewBuy

You could access a 95% NewBuy mortgage on a new build property up to the value of £250,000 (£450,000 in London) at a reduced rate of interest, with just 5% deposit.

Shared Ownership

This scheme allows you to buy a percentage of your home, rather than the entire property, which makes the loan more affordable and mortgage more achievable to those on lower incomes or with bad credit.

Remortgaging and Buy To Let for Teachers

As a Home Mover or Buy to Let landlord, your mortgage options are largely the same as any other applicant. You may benefit from more flexibility from lenders in terms of proof of income requirements, than those in most other professions, given that teaching is seen as a stable career option.

Does my teaching status affect my application?

Newly Qualified Teachers

Newly qualified teachers (NQT) can be on a shorter term contract for some time before they establish a permanent position, which can make an application more difficult. Some independent banks and building society lenders do offer specialist NQT mortgages, however.

Supply Teachers

Whilst there is more financial uncertainty as a supply teacher, lenders can be more cautious with their loan offers. There are, however, specialist mortgage providers who are willing to consider supply teachers.
As a supply teacher you are more likely to be accepted if you have at least a year of continuous employment.

Retired Teachers

As a teacher, you’re as likely to be accepted for a mortgage as any other retiree. The lender will consider your full teacher’s pension when calculating what you can borrow, however, your age will also be taken into consideration.

Mortgage protection products

As a teacher, you may have access to employment benefits such as employment and mortgage protection policies. Whilst these protection policies can help with your mortgage application due to the reduced risk associated, employee-related insurance policies often have limitations, however, so it’s always wise to consider additional mortgage protection to ensure that you are adequately covered.

How can The Mortgage Company help teachers to find a mortgage?

Here at The Mortgage Company, our Mortgage Brokers have plenty of experience in helping teachers and other educational professionals with their mortgage needs. We have an intimate knowledge of those Mortgage Lenders who either specialise in mortgages for teachers or are more sympathetic to their needs.

We can help you to achieve the most suitable mortgage deal for your individual circumstances, whilst ensuring you take full advantage of any benefits your chosen career path has afforded you. Our advisers understand that teachers often have long and difficult working patterns, so we will strive to be available when you need us, whilst reducing the stressful administrative aspects of your mortgage application.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE

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