Education professionals know that their job comes with a lot of perks. Rewarding work, long summer holidays and great deals on mortgages to name but a few. As a teacher, you likely have a very secure job, with many people staying in the same role for years on end. This allows you to secure the best rates on mortgages, and you may even be able to secure a 95-100% mortgage and find a lender with very flexible criteria.
Do I qualify for a teacher mortgage?
In order to be able to secure one of these exclusive mortgages, at least one applicant must be one of the following.
- A fully qualified teacher
- A teaching assistant with NVQ Level 3
- A newly qualified teacher
- A nursery nurse with NVQ Level 3
- A supply teacher with work history
- A children’s therapist
You will also need one of the following contract types.
- Supply teacher
- Agency teacher
- Retired teacher
Securing a teacher mortgage with a fixed term contract
Not all teachers have full-time contracts. If you are on a fixed term or temporary contract, you will need to demonstrate a history of employment. If your contract has been renewed once before, this will also help to strengthen your application. The longer you have left on your contract the better, but you don’t have to assume that a lender will turn you down if your contract is coming to a close.
Securing a mortgage as a newly qualified teacher
As a newly qualified teacher, you might have limited credit history due to spending years in education. You may also only have a one year contract, to begin with. This is because there have been changes in the way teachers are employed. First, they are offered a one year contract, which can then be extended to three years and finally made permanent. This can make some borrowers panic as they assume that lenders will think they only have a temporary contract.
Don’t worry, we see this a lot. We can put you in touch with the mortgage providers who are more likely to accept your application. Newly qualified teacher mortgages do exist, and it may be a case of digging a little deeper with the choice of lenders.
Mortgages for supply teachers
If you work as a supply teacher, your income may be more sporadic than a full-time teacher’s income. As a result, you may find it more difficult to get accepted for a mortgage. This is because lenders will be more cautious towards supply teaching as the work isn’t guaranteed every month and this might lead you to struggle to keep up with your mortgage payments.
There are certain mortgage providers who will look past this provided you can show evidence of past income as a supply teacher. If you are applying for a mortgage that is well within your affordability, or if you can provide a bigger deposit, this can also help. Finding a second applicant for the mortgage – or a guarantor – can also strengthen your position.
Mortgages for retired teachers
Some lenders won’t give mortgages to those who are retired as they are concerned they might not be able to keep up with the payments. However, a teacher’s pension is considered to be sustainable, so you may find a lender more willing to accept your application if you are already retired or nearing retirement.
Can I get a special deal as a teacher?
There are some lenders who specialise in lending to teachers. However, as there are so few specialist lenders, it makes more sense to explore the market in full rather than limiting your choices. The best deal for you might not even have anything to do with your status as a teacher.
Can I get a mortgage with a small deposit?
There are two ways you can look at this. Either you need help securing a mortgage with a smaller deposit, or you need help boosting your deposit. Either way, there are government schemes to help you, but only if you are buying your first home. You cannot use them for a second home, to move home, or to purchase a buy-to-let property.
The first scheme will allow you to buy your first home with a 5% deposit. The second is an ISA account that will top up your savings, up to the value of £3,000. The first scheme can only be used on new build homes, so it can limit your choices.
Can I get a mortgage with bad credit?
Bad credit doesn’t have to mean the end of the road for your mortgage application. If you have a healthy deposit and a full-time permanent contract, some lenders will look past your credit history. You may be able to secure a mortgage, even if the following apply.
- Bankruptcy – if discharged within 12 months
- CCJs and defaults – with a 15% deposit
- Late payments
- Mortgage arrears
- IVA or debt management plans – with a 15% deposit
If you’d like to find out more about mortgages for teachers, submit an enquiry today. We can help you to understand your current position and put you in contact with the lenders more likely to accept your application.