Mortgages for teachers in the UK – Full guide and rates you can expect
Teachers and other professionals working in the education sector can enjoy some amazing benefits from mortgages. These benefits include high-interest rates, low deposit options, flexible criteria and special underwriting for temporary contracts. Variable income is also possible.
Teaching can be very rewarding. You may also enjoy certain perks. Teachers can get mortgages more easily than other professions. Get a quote on a mortgage for teachers below:
Why get a specialist mortgage for teachers?
Teachers are often preferred by mortgage lenders, you are likely to be able to find employment easier as a teacher. Teaching should also provide you with a steady income that can be used to pay your mortgage.
Some lenders will only offer mortgages to teachers. Others are more open to applicants who work in the education sector. A regular mortgage might be better than a tailored mortgage for teachers. It’s worth looking around before you apply for a mortgage.
Talk to one of our expert mortgage brokers to determine what type of mortgage you would be eligible for as a teacher. They will be able to advise you on what to do next, how to improve your application and which mortgage products would work best for you.
We’ll get you connected with an advisor as soon as possible by calling or making an enquiry.
Constitute financial advice today for teacher mortgages. Whether you are a newly qualified teacher or a retired teacher or a mortgage advisor can help you.
Am I eligible for a mortgage as an educator or a newly qualified teacher?
If you are applying for a combined mortgage, there must be at least one applicant to be eligible for a mortgage for teachers.
- Fully qualified teacher/lecturer
- Teaching assistant with NVQ Level 3
- An NQT (newly qualified teacher)
- A nursery nurse who has an NVQ Level 3
- Supply teachers with a proven track record
- A child’s therapist
You will need one of these contract types if you fall within one of these roles:
- Full-time contracts
- Part-time contracts
- Teachers of supply
- Teachers who are employed by agencies
- Retired teachers
- Also, those who are eligible for other income-related grants or bursaries
What is the maximum amount that teachers can borrow to get a mortgage?
Although most lenders base their affordability calculations on your annual income of three to five times, there are still many things to consider. Lenders will consider your expenses and any debt you might have. The amount that you can borrow will depend on your credit score.
Some lenders will accept any bonuses or overtime you earn, along with any secondary income. Others will only consider your teaching salary and not any other income. This is especially true if you rely on income from a secondary source, or receive a lot from overtime and bonuses. Applying with an unsuitable lender can lead to your application being denied.
The mortgages that you are offered will be affected by the amount of your deposit. A 5% deposit may limit your access to certain lenders. A larger deposit, such as 10-20%, will allow you to select from more lenders and offers. You’ll be able to get a better deal on your mortgage if you have a larger deposit, such as 10-20%.
Is it possible to get a mortgage if I have a temporary or fixed-term teaching contract?
Some lenders will accept temporary or fixed-term contracts, provided there is a history of employment and that the mortgage is not paid off within the first few months.
The better the history and the time remaining on the current contract, the more. However, it is still worth asking questions in case you are not covered by these criteria. In certain cases, we have access to lenders who can manually evaluate applications for fair lending decisions.
Teachers who have just been certified can get mortgages
Are you a teacher new to the area or an experienced teacher who just moved? A 1-year contract may be offered to you, which can be renewed for the next 3 years until you are offered a permanent job. This could be a possibility for many teachers who are looking for a mortgage lender willing to accept them.
Specialist advisors have access to all NQT mortgages. These lenders will accept NQT mortgage applications and process mortgages in a normal manner as if they were another teacher/employee.
This is not a feature that all lenders provide. If you only go to your bank for this information, you could be restricting yourself. Make sure you are aware of all options by submitting an inquiry today to have one of our teacher mortgage experts provide you with the best advice.
Supply teachers can get mortgages
A sustainable income is often difficult to prove as a supply teacher because, although many people find work, lenders are cautious about it since there is no guarantee of income for the entire mortgage term.
You should be cautious when applying for a loan if you have just started a job. Certain circumstances can make you look high-risk and could lead to your application being rejected.
A suitable lender is essential if you are a supply teacher working on a temporary or zero-hour contract. Some lenders may require that you work full-time. A mortgage advisor can help find the right lender for you. There are specialist lenders who may be able to consider you even if you have difficulty getting a mortgage as an educator.
Lenders that are familiar with the education sector may also consider you, even if you aren’t yet qualified or have not yet secured a full-time job. It is common for teachers who are newly qualified to receive a one-year temporary contract. While some lenders know this, others don’t.
A supply teacher may not be able to obtain a mortgage from a high-street lender. However, specialist lenders are available to help you qualify. However, this doesn’t necessarily mean that you will be offered higher rates than normal. Lenders will evaluate your whole situation, including your savings, income, and deposit amount.
There are few lenders who will lend to supply teachers. If you have worked in this position for at least a year, some lenders may accept a portion of that towards their affordability calculations. However, some lenders will require a minimum of one year of work history, while others will consider each applicant individually.
A second mortgage applicant who is employed full-time on a permanent basis will only enhance your application
A teacher’s pension is as long-lasting and indefinite as any other occupational pension. As such, your entire pension can be used to help you get a mortgage.
Do you have any special mortgage offers for teachers?
Sometimes it can be easier to obtain a mortgage for teachers. Lenders tend to view teachers as low-risk applicants. Because you are likely to stay in the education field for a long time, this is why lenders often consider teachers as low-risk applicants.
Lenders base mortgage decisions largely on affordability and risk. Lenders can have confidence in your application if you are a professional in that field. It is often easier for professionals like doctors, lawyers, and accountants to obtain a mortgage than other applicants.
Lenders understand that teaching is a serious career choice. It’s less likely that you will change your career path after you have made a decision. This gives lenders the confidence that you will be able to pay your mortgage over time.
You can also make a career out of teaching. Lenders are also aware that your income can increase over time.
Education is an essential function of society, teaching is considered a secure occupation. However, becoming a teacher does not guarantee you a mortgage. You will still need to meet the requirements of your lender.
Sometimes, mainstream lenders offer enhanced deals to professionals and key workers who are not part of their product range. One or two lenders specialise in mortgages for teachers only, high street lenders don’t tend to do so.
Contact today to speak with a mortgage advisor who will introduce you to a mortgage provider who offers mortgages for teachers.
There are so few mortgages for teachers available unless you go to a specialist lender. As mortgage brokers, we are constantly looking across the market to find deals that aren’t exclusive.
These can be just as competitive, if not better, depending on your loan value and your financial circumstances.
Is it possible to get a mortgage without putting down a lot of money by being a teacher?
The key worker mortgage program often offers attractive government support to teachers and other educational workers. Additional support may be available that is better than the standard scheme. This program is reserved for teachers who have the potential to become leaders in their field.
Teachers with poor credit can get mortgages
You may still be eligible if you have had credit problems in the past.
These mortgages are available from some lenders:
- A mortgage with a Chapter (if discharged within 12 months).
- CCJ Mortgages and Mortgages with defaults (subject to a 15% deposit/equity requirement)
- Late payments before a mortgage
- Mortgage arrears
- Mortgages (if you have a minimum 15% deposit/equity)
Specialised mortgage advice for teachers
Finding the right lender requires more than just being accepted. To get the best mortgage deal, it is important to find the best deal possible and borrow the amount you need. Although small differences in rates may not seem significant, over time you could save thousands of pounds. This is where we do the hard work for you and find you the best mortgage deal on the market.
Talking to an advisor who is familiar with the education sector can help you maximize your borrowing potential. This will often maximize your borrowing potential. If necessary, experienced advisors can also work with underwriters to resolve any issues with your application.
Once you are ready to apply, you can talk to one of our mortgage advisors free of charge.
FAQ: Mortgages for Teachers
Do teachers get special mortgages?
Yes, teachers may be eligible for a mortgage deal that’s not available elsewhere. This is because of their profession. However, your criteria must still be met by your mortgage lender. A teacher does not guarantee that you will get a mortgage.
Can teachers get better mortgage rates?
Teachers may find their mortgage rates more attractive than regular mortgages. However, every mortgage is different and you won’t get a lower rate because of your profession.
Are teachers eligible for discounts on house purchases?
You won’t get a discount for being a teacher if you buy a house. However, Help to Buy may offer a discount if you are a teacher. The discount you receive will depend on which scheme you use, not your profession.
Can I get a mortgage to substitute for a teacher?
Yes, you can get a mortgage as a substitute teacher. You will need to meet all the requirements of your lender, including income, deposit amount and credit.
As a primary school teacher, can I get a mortgage?
Yes, primary school teachers can get a mortgage. You will likely need a contract outlining your salary. You must have sufficient income to pay a mortgage. Bad credit can make it difficult to obtain a mortgage.