Mortgages for Teachers
Trying to get a mortgage whilst working as a teacher? You can be eligible for better rates!
Find out exactly how to apply in our in-depth guide.
Which of the below best describes your teaching position?
No impact on your credit score
Teachers are considered low risk by mortgage lenders as education is a stable profession with good scope for progression.
Whatever stage of your career you’re at, there are potential benefits to be gained when applying for a mortgage as a teacher or other education professional.
In this article we’ll look at how a broker can help make sure you get the best deal possible according to your personal circumstances and employment status within education.
The following topics are covered below...
Are there specific mortgages for teachers?
No, not specifically, but most mainstream providers will look favourably on the job security that comes with being a teacher. Many will use higher than standard income multiples – up to 5 times – when calculating affordability, and a few will consider going as high as 6 times.
Lots of lenders will also accept applications from teachers using government schemes designed to help new graduates and other key workers get on the property ladder.
Away from the mainstream providers, there are specialist lenders, like the Teachers Building Society, dedicated to helping teachers get mortgages.
Fully qualified teachers with years of experience and a good credit rating are likely to be offered some of the best rates available on the market. But being new to the profession doesn’t necessarily prevent you from getting a mortgage either.
The type of deal that is best for you will depend on your circumstances and the products available at the time:
Fully qualified teacher
As a fully qualified teacher you can often borrow up to 5 times your annual salary or higher, depending on the lender.
There are lenders who specialise in arranging mortgages for teachers, but they don’t always offer the lowest rates.
It is recommended that you speak to a whole of market broker to make sure you maximise your borrowing potential and get the best rate possible.
Newly qualified teacher
As a newly qualified teacher (NQT), your fixed rate employment contract can prevent you from getting a mortgage with most mainstream lenders.
However, specialist NQT mortgage providers will take your career prospects into account and can still approve your application.
An NQT application will be strengthened by documentation that proves you have a full-time position after your NQT year.
A large deposit (perhaps gifted by a parent?) or guarantor can also help.
Trainee teacher
It is even possible to obtain a mortgage while you are a student training to be a teacher.
There is a limited number of lenders who will consider this type of loan, but it is by no means impossible to get approved.
Some specialist lenders will take into consideration all income from work you do outside of your studies along with any bursary or grant you receive.
If you are close to the end of your course and have already received a job offer, this can strengthen your application.
Supply teacher
There is no reason why you can’t get a mortgage as a supply teacher but finding the right lender will depend on the length of your contract and how long you have been teaching.
If you took on your supply role after being a full-time teacher, your application will be looked at more favourably.
Likewise, if you are on a long-term supply contract that has at least twelve months to run, you are likely to have more options than if you are new to supply teaching and are working on short term contracts.
Some lenders will want to see twelve months’ worth of payslips while others will be happy with fewer than six.
As a supply teacher, it is always recommended that you speak to a broker to assess all your options before taking out a mortgage
Retired teacher
A teacher’s pension is a reliable income and can be used for most standard mortgage applications.
Many lenders insist mortgages are paid up by the time you reach 70 years of age but other options are available to you if you are borrowing in later life.
If you are a retired teacher you may want to consider:
- Retirement interest only mortgage
- Equity release
- Downsizing
- Remortgaging
Unqualified teacher
As an unqualified teacher, you might not be able to access some products or schemes aimed at teachers.
With a specialist broker acting as an advocate, though, you may still be able to secure a favourable rate with a lender who assesses applications on a case-by-case basis.
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Types of mortgages available
If you are an experienced teacher with a large deposit, good credit history and no affordability issues, there is a wide selection of mortgages available to you across the market.
From time to time, mainstream lenders announce products that offer preferential rates to key workers. Sometimes these are only available via brokers but can help you secure an even better deal.
There are also government schemes aimed at helping professionals, including teachers, get on the property ladder:
Shared Ownership
Part own and part rent your home. This is particularly good for NQTs as you can buy more shares as your income increases.
First Homes
Key workers and first-time buyers are eligible for a discount of up to 50% on certain new build properties that are part of this scheme so do not need a deposit.
Right to Buy
If you are an existing council tenant, you may qualify to purchase your home under the Right to Buy scheme using a teacher mortgage.
Guarantor or offset mortgage
If you have a family member willing to put up savings or equity as collateral, you can use this in lieu of a deposit. Coupled with the job security of your profession, this could secure you a much better mortgage rate than you would otherwise pay.
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How a broker can help
Teaching is a secure profession, but many mainstream lenders have strict lending criteria that don’t always allow for future progression to be taken into consideration. Specialist lenders who understand the education sector can be more flexible in their underwriting.
A broker with insider knowledge of how these specialist lenders assess applications can help make sure you apply to the right lender according to your circumstances and can speak on your behalf to help secure a deal that is in the balance.
Eligibility and criteria
To get the benefits of applying for a mortgage as teacher at least one applicant must be able to prove they are a:
- Fully qualified teacher
- NQT
- Trainee teacher
- Supply teacher
- NVQ Level 3 nursery nurse
- NVQ Level 3 teaching assistant
- Children’s therapist
For those in a permanent position, the last three months’ wage slips should be sufficient to prove profession and income. Supply teachers working either freelance or through an agency, may need to provide more than that to prove their average income over six or twelve months.
If applying for a mortgage having recently accepted or started a new position with a higher income, your new contract of employment will be accepted as proof of your updated financial position by some lenders.
Working in the education sector does not guarantee you a teacher mortgage but opens your options if you are struggling to get approval from mainstream lenders.
Teacher mortgages are assessed according to usual underwriting criteria:
- Affordability
- Size of deposit
- Credit history
- Age
If any of the above are proving a stumbling block, your borrowing options will be limited still further but there may still be lenders who will approve your mortgage.
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Get matched with a specialist education sector mortgage broker
From trainees through to retired teachers, finding the best deal means finding the right lender and tailoring your application to their criteria.
Our broker matching service will pair you with an expert in teacher mortgages with a working relationship with specialist lenders and access to exclusive deals.
The brokers we work with have whole of market access so you can be sure of the best deal whether that be an exclusive product for teachers or a low rate with a high street lender.
Call now on 0808 189 0463 or enquire online to arrange a no-obligation chat.
Get Started with a Broker
Maximise your chance of approval with specialist advice from a mortgage expert.
FAQs
Yes. Student loan debt will be taken into consideration as part of your affordability assessment but as an NQT, it’s highly unlikely you will be making student loan repayments unless you have a second job.
Yes. With the right lender, you can use your bursary as income and your previous teaching experience will strengthen your application.
Yes, it’s possible. Being a teacher or education professional can add weight to your application as you are considered low risk. This can result in more favourable rates with mainstream and specialist lenders.
Ask A Quick Question
We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects. Ask us a question and we'll get the best expert to help.
Pete Mugleston
Mortgage Expert, MD
About the author
Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.
Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!
