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Do Teachers Get Special Mortgages?

August 12, 2020
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Teachers may not get special mortgages, but they are looked upon favourably by lenders. Teachers have stable careers and steady income. People who train to become teachers will typically stay in the profession until they retire. They may climb the ranks in their school, but they don’t tend to move into completely different roles.

There is a common misconception that there are specialist mortgage products available for different career choices. This isn’t true. Instead, what you will find is that there are lenders more accustomed to working with particular industries and professionals.

So while teachers don’t get special mortgages, some lenders will be able to maximise the benefits for teachers. Read on to discover how we can make getting a mortgage as a teacher is easier.

Can teachers get mortgages?

Teachers will typically find it simple to get a mortgage. As a full-time, salaried employee, you will easily be able to prove your income. Since a teacher’s income doesn’t fluctuate throughout the year, this makes it even easier for lenders to calculate affordability. You should be able to access a range of lending products, including:

  • Fixed-rate mortgages
  • Variable-rate mortgages
  • Standard variable rate mortgages
  • Tracker mortgages
  • Offset mortgages

What if I am new to teaching?

Lenders will typically want you to wait until you have a permanent contract before they grant you a mortgage. If you are on a probationary period, it’s best to wait until this has ended and your contract is permanent before applying. Most teachers under a 6 month period of induction and training which also makes up their probationary period. Once you have passed this, you will be a full-time permanent member of staff, and you will be free to apply for a mortgage.

Do I need to find a specialist lender?

As we outlined above, while there aren’t specialist mortgages, there are some specialist lenders. If you want to get a mortgage that is fine-tuned for teachers, you could approach a lender like Teacher’s Building Society. This organisation helps teachers to get on the property ladder by helping them to access borrowing and saving products.

How much deposit do I need?

As with any mortgage application, you will need to save at least 5% of the value of the property. This helps to lower the risk to the lender, so if the value of your home drops immediately after you buy it, there is some buffer before you face negative equity (when you owe more than your home is worth).

As with any mortgage, the more deposit you can offer, the better the rates you will be offered. Saving a bigger deposit, in the beginning, could help you to save money on your mortgage in the long term.

Can I use a help to buy scheme?

Absolutely! Many teachers make the most of help to buy schemes to help them save, to boost their deposit, or to make it more affordable to buy their first home. If you have already opened a help to buy ISA, you can continue to save until 2029. You could also explore shared ownership schemes and equity loan schemes.

What if I’m on a temporary contract?

If you are a temp worker or a substitute teacher, you should still be able to access the same mortgage products as permanent contract teachers. All you need to do is prove that you have a history of income in a teaching role. Provided you can show that you have worked as a temp teacher in the past, you should have no trouble securing a mortgage, even if your contract is coming to an end.

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