Becoming a teacher offers many perks. To start with, you get the highly rewarding feeling of knowing that you’ve had a huge impact on young people’s lives. And not to mention all the school holidays! But is cheap mortgages one of the perks of becoming a teacher?
Teachers are often looked upon favourably by mortgage providers. They have stable careers and steady income. From month to month, their earnings will usually be the same. Some people believe that teachers have access to special mortgages that the rest of us can only dream of. In some ways, this is the case, but is there really such a thing as a “teacher’s mortgage"?
In some ways, teachers do have access to specialist mortgages. For example, The Teacher’s Building Society only lends to teachers, so they are more familiar with the professional. This allows them to offer specialist advice to teachers. However, just because they are only lending to teachers, it doesn’t necessarily mean that you will get the best rates.
As with any big life decision, it’s important to consider all of your options. While it can be tempting to go with a provider who knows your profession, this doesn’t guarantee the best deal. By shopping around, you might find another provider who will look on your application just as favourably.
While some teachers will have no trouble securing a mortgage as a result of their steady work and income, others might not have such an easy journey. For teachers on temporary contracts or even fixed term contracts, they might have a harder time proving their income. If you’re not on a permanent contract, discover what steps you can take to help improve your chances of securing a mortgage if you are a teacher.
Key worker mortgages was a scheme intended to help certain professions to find affordable accommodation close to their place of work. Key workers are people like police officers and teachers who are considered to be vital to the infrastructure of the country. While this has now been phased out, there are other options available to help get teachers on the property ladder.
Low income is a common problem across the teaching profession. Teachers can expect to earn around £25,000 on qualifying, increasing to around £35,000 with more experience. This level of income can make it difficult to save for a significant deposit. The Help to Buy Equity Loan Scheme can help teachers on low income to provide a larger deposit and access better loan rates as a result.
If you are concerned that your credit history might hold you back, the first step is to clean up your credit score. Some lenders won’t let this hold you back, so it’s always worth speaking to specialist mortgage brokers about your situation. We can help advise you on the brokers most likely to be able to offer you advice.
As with all mortgage applications, if you want to secure the best rates, you ideally need to provide a large deposit. While you might be accepted for a mortgage with a 5% deposit, you are unlikely to be offered the best deals. Instead, you should aim to save for a 15-20% deposit. If you income as a teacher won’t allow for this, you could also look at a Help to Buy Equity Loan to increase your deposit.
And finally, make sure you are speaking to the right people. While you might not be able to find lenders who specialise in mortgages for teachers, they don’t always offer the best rates. Shop around and make sure you know what is available before you make a final decision.