What Mortgages are Available for Teachers?
Are there Special Mortgages for Teachers?
There is no one specific mortgage product exclusively for teachers. There can be huge advantages offered to those working in the sector.
Unfortunately the key worker mortgage, which was previously available to help teachers and similar professionals buy their first home, no longer exists. There are a range of other government schemes in place of this that can help.
Do I Qualify for Special Rates
As a teacher or other educational professional, you often qualify for mortgage benefits, such as lower deposits and interest rates.
Many roles in the teaching profession are subject to unstable contract types. Special accommodations are sometimes made to navigate fluctuations in your income. There are even specialist lenders, who offer mortgages exclusively to teaching staff, such as Teachers Building Society.
If you are employed in any of the following roles, you will usually qualify for these special benefits:
- Fully qualified teacher/lecturer
- Newly qualified teacher (NQT)
- Supply teacher
- Teaching assistant (NVQ level 3)
- Nursery nurse (NVQ level 3)
- Children’s therapist
This applies to both full and part time educational staff, those on supply or agency contracts and retired workers. You can also be considered if you are receiving any type of educational grant or bursary.
Teacher Mortgages for First Time Buyers
As a first time buyer, you have access to the same mortgages as everyone else. Some lenders may however offer you additional benefits. You also have to decide between a standard fixed term or variable rate mortgage. You may even opt for one of the government schemes aimed at first time buyers.
Help to buy
Help to buy mortgages are a good option for teachers who want to get onto the property ladder, as they require a lower deposit. A help to buy equity loan of 20% from the government, means you’ll only need to find a 5% deposit.
In order to obtain the best mortgage deal for you, It’s best to seek mortgage advice from a broker who specialises in mortgages for teachers.
Remortgaging and Buy To Let (BTL) for Teachers
Those who work in the educational sector have the same access to remortgage and BTL offers as anyone else. You may have access, however, to more flexibility from lenders. There will be less rigid job security and proof of income requirements, than for those in most other professions.
How to Apply for a Mortgage as a Newly Qualified, Supply or Retired Teacher
Newly Qualified Teachers
As a newly qualified teacher (NQT) you may be on a shorter term contract. It can take up to four years to establish a permanent position, which can make applying for a mortgage difficult.
Thankfully there are specialist NQT mortgages available. These are by no means offered by every lender, but brokers experienced in assisting teaching staff will have access to those that do.
With the financial uncertainty involved in being a supply teacher, you may be nervous to put in a mortgage application. Understandably, many lenders are more reluctant to offer mortgages to supply teachers.
Some specialist mortgage providers are willing to consider supply teachers. Those with at least a year of continuous employment will have an easier time. There are a few lenders who are willing to consider supply teachers with less than this on a case by case basis.
If you receive a teacher’s pension, your full pension will be counted when calculating the amount you can borrow.
You are as likely to be accepted for a mortgage as any other retiree. The lender will, however, take your age into consideration when they decide on the mortgage term.
Again, you’re best placed using a specialist broker to advise you for these circumstances.
Mortgage Protection products
There are often many employment perks that come with being a teacher. These can include employment and mortgage protection policies. Employee related benefits generally also have limitations, however, so it’s always wise to consider taking out mortgage protection.
Mortgage brokers who specialise in helping teachers and education professionals can sometimes help find you the best mortgage protection products.
How can a Mortgage Broker help if you are a teacher?
Mainstream lenders sometimes have mortgage offers for those in specific professions. Alongside NHS employees, Teachers are often in a good position to receive these types of offers.
As an individual it’s almost impossible to get a full perspective of the mortgage market. Many brokers can offer specialist knowledge of those mortgages which will be more beneficial to teachers and educational staff.