Mortgages for teachers
Published 16th August 2017
Mortgages for teachers (and other professionals that work in the educational sector) can come with some fantastic benefits. Top rates, 95-100% mortgages, flexible criteria, special underwriting when it comes to temporary contracts and variable income, and more...
Do I qualify for a teachers mortgage?
Usually, to qualify for a teacher exclusive mortgage at least one applicant must be one of the following:
- A fully qualified teacher / lecturer
- A teaching assistant with an NVQ level 3
- A newly qualified teacher (NQT)
- A nursery nurse with an NVQ level 3
- A supply teacher with a track record
- A children’s therapist
If you fall under one of those roles, you ideally need to be one of the following contract types:
- On full time contracts
- On part time contracts
- Supply teachers
- Agency based teachers
- Retired teachers
- And those receiving other educational related income grants and bursaries
Teachers mortgages with fixed-term or temporary contracts
Fixed term or temporary contracts are acceptable to some lenders so long as there is a history of employment, or there is at least several months left to run once the mortgage has started. The longer the history and time left on current contract, the better, but it is still worth enquiring if you fall outside of this criteria as in certain circumstances, we have access to lenders who can manually review applications case by case, for common sense and fair lending decisions.
Newly qualified teacher mortgages
Are you a new teacher? Or an experienced teacher who has just moved jobs? Are you looking for a mortgage on one of the new 1 year contracts? Recently there has been a change in the way teachers are employed, and many will be starting out on 1 year contracts with the potential to be renewed for the first 3 years of employment, until a permanent position is offered. This has caused a stir in the mortgage market and has left many new teachers searching for a mortgage lender that will accept them.
DON'T PANIC! NQT mortgages exist, and the specialist advisors have access to them all. These lenders will accept NQT applications and process mortgages in the normal way as if you were any other teacher/employee. Note: Not all lenders do this, and if you just go direct to your bank you may be limiting yourself. Make sure you have every option available by making an enquiry today and have one of the teacher mortgage experts give you the right advice.
Mortgages for supply teachers
Typically, a sustainable income is a difficult thing to prove as a supply teacher, because although currently many find work easily – lenders have a cautious attitude towards it being as there is no certainty to the hours available to provide income, especially for the life of the mortgage.
Having said that, there are a select few lenders that offer the flexibility to cater for supply teachers when applying for a mortgage, and if you have had a history of working in this role for several months then lenders start to accept a certain percentage of it towards their affordability calculations when establishing how much you can borrow. If you have a second applicant on the mortgage who is fully employed on a permanent basis, then this only strengthens the application.
Mortgages with a teacher’s pension
A teacher’s pension is as sustainable and indefinite as any other occupational pension, and as such, if you are looking for a mortgage when retired or nearing retirement, then your full pension can be used towards affordability.
Are there any special mortgage deals for teachers?
Occasionally mainstream lenders release professionals and Key worker mortgage products that are enhanced deals compared to the rest of the product range they offer. There's also one or two lenders that specialise in lending to teachers exclusively. As they are few in number, often it pays to scope the entire market for deals that aren't exclusive - as these can be just as competitive if not more so depending on the loan to value and your circumstances.
Can being a teacher help me get a mortgage with less deposit?
Teachers, along with other key workers, are often eligible for attractive government support as part of the key worker mortgage scheme. You may also qualify for additional support that is even better than the standard scheme, set aside specifically for teachers that have the potential to go on and be leaders in their position.
Teacher mortgages with bad credit
If you've had credit issues in the past and finding it hard to get a mortgage, then don't fret - you could still be eligible. Lenders can consider the following:
- bankruptcy (if discharged minimum 12 months)
- CCJs & Defaults (if 15% deposit / equity minimum)
- Late payments
- Mortgage arrears
- Debt management plan (if 15% deposit / equity minimum)
To make an enquiry about doctor mortgages or for anything else, please fill out an enquiry below and a professionals mortgage expert will be in touch ASAP. If you require immediate assistance please give us a call on 0800 304 7880.