Getting a Mortgage if you’re a Teacher

There’s no doubt about the vital service to society teachers provide, and while this might not be acknowledged particularly well in initial salaries, some mortgage providers do recognise this profession as being steadfast, vital and promising.

This is why often highly trained teachers can be considered for specialist deals or schemes that will help them get on the property ladder. Here we look in greater detail at mortgages for teachers and how best to go about getting one.

Do teachers get cheaper mortgage rates?

Yes, if you’re a teacher you’ll likely have more lenders willing to consider your application, which in turn means you could qualify for the best rates of interest available.

You might also receive other benefits when taking out a mortgage, such as lower deposit options and concessionary eligibility requirements for criteria such as an acceptance of variable income and temporary contracts, for example.

Because there is no standard teacher mortgage out there, rather just normal mortgages but ones offering the best terms, it’s worth speaking to a specialist mortgage broker who understands the intricacies of securing a mortgage if you’re in the education sector, including which lenders are best to approach, before you face the marketplace alone.

Generally speaking, teachers can apply for the same mortgage deals as anyone else. Take a look at the table below to get an idea of the latest mortgage rates on offer. Please note that these deals are subject to change.

Please note that the above rates were accurate at the time of writing, but are always subject to change at the lender’s discretion. Speaking to a mortgage broker is the best way to find the most up-to-date deals.

How much can you borrow?

To get an idea of how much you might be able to borrow based on your teacher salary, use our affordability calculator. Please note, this is only an estimate but is a good starting point for clarity.

How to get a mortgage as a teacher

Your first step should be to make an enquiry with us so we can match you with a mortgage broker who specialises in helping teachers secure home finance.

There are advisors in our network who are experts when it comes to teacher mortgages, and they know exactly which lenders offer preferential rates and deals for people in this profession. Your handpicked broker will walk you through the following steps to full application:

• Preparing your paperwork and credit reports
• Finding the best lenders for teacher mortgages
• Securing the lowest interest rate and filing you application

Which lenders offer the best mortgage deals?

This depends on which route you take – will you go for a scheme or help from a relative, for example. Some lenders are better at certain types of mortgages than others, so it’s difficult to pin down exactly which is best for teachers.

Other than Teachers Building Society, there are no banks or building societies that specialise in this one profession, but there are some who might excel at low income mortgages, for example, such as Aldermore, which has a minimum salary of £10,000, or Precise Mortgages with a £15,000 cap.

While there may be some deals that can be found in a quick online search, such as the Hero mortgage range from Kensington Mortgages (for key workers), in an ever-changing financial climate, it’s very tricky to know which products still exist on the market.

How do you qualify for a mortgage as a teacher?

You’ll likely be granted the best mortgage deals out there if you’ve been fully qualified for many years and have a good credit history behind you, however attractive loan terms are not exclusive to just veteran educators.

While lenders will look at applicants on a case-by-case basis, they will typically be looking at whether you fit the following criteria:

• Fully qualified teacher or lecturer
• Teaching assistant with an NVQ level 3
• Newly-qualified teacher (NQT)
• Nursery nurse with an NVQ level 3
• Supply teacher with a track record
• Children’s therapist

You might also be eligible if you or your partner (for a joint mortgage) is a trainee teacher, a retired teacher, part-time, agency-based or, in some cases, even unqualified but working in this profession and/or receiving special bursaries.

Always remember, every lender will still look at your affordability situation as a whole and your other eligibility factors, as well as what you do for a living.

Are there any special mortgage schemes available?

Just like with mortgages, there is no specific scheme for teachers, although the First Homes scheme is aimed at key workers and first-time buyers (more on this below). This replaced the Key Worker Living Programme for first-time buying teachers and other workers which ended in 2019.

However, there are a number of schemes that you might still qualify for as a teacher:

• Shared Ownership: If your starting salary is not yet significant enough to cover a full mortgage, this scheme allows you to part-rent and part-buy your home initially, while working towards full ownership as time goes on.
• First Homes: If you meet the eligibility criteria, you’ll get a minimum of 30% discount on a new build home with participating developers. First Homes is aimed at key workers and first-time buyers.
• Right to Buy: If you are a teacher and are currently living in a council-owned property, you may qualify to buy your home at a discount with Right to Buy.
• Guarantor or springboard: Getting the support of a loved one with either a guarantor mortgage or springboard mortgage might offset any perceived risk for the lender and result in a much better deal overall.

Can supply teachers get a mortgage?

There are many lenders out there who are willing to accept applications from supply teachers, but they come with varying degrees of small print. For example, the Loughborough Building Society can potentially accept this kind of income, but you must have evidence of working for the last six months with no more than a two week gap in employment.

Family Building Society requires a proven track record of two years minimum, while Metro Bank would want to see three years worth of earnings. Because the benchmarks are so varied, it’s crucial to work with a broker in this circumstance, as they will know which lenders are most flexible in this area.

What if you’re newly qualified?

Your broker will be able to point you in the right direction of lenders who will be more flexible here. Some lenders will be stringent about a proven track record in employment or a sizeable deposit behind you, while others will take your prospects into account.

If you have evidence that you have secured permanent employment for when your training is over, this will also help to boost your application.

Speak to a broker experienced in mortgages for teachers

Despite being tricky to pinpoint, there are mortgage deals, offers and benefits out there for teachers, and if you’re in the education sector it is crucial you uncover which ones are open to you.

An experienced and impartial advisor could make all the difference to your application outcome for years to come. To get matched up with the right specialist advisor for your circumstances, contact us for an initial chat to find out more, on 0808 189 2301 or make an online enquiry.