Mortgages for Teachers and Education Professionals
As an education professional, you will likely find yourself without much time on your hands. Friends and family forever jealous of your summer holidays and half term breaks but not seeing the mountain of marking, parents’ evenings, and safeguarding hoops you need to jump through daily. Not forgetting preparing for what feels like a constant flow of Ofsted inspections.
We understand that your role can be as demanding as it is stressful and when it comes to buying a house, you’ll likely be up against it. Competing with buyers with more time flexibility and the ability to get to the phone throughout the day whilst you are teaching classes.
We want to help give you get a leg up on the competition. So, we wanted to answer some of the internet’s most frequently asked questions regarding mortgages for teachers and education professionals.
If you are a teacher looking for a mortgage, then you are in the right place!
Newly Qualified Teachers (NQTs)
Let’s start from the beginning, you’ve just qualified as a teacher, and you want to buy a house. You’re worried that your current contract will get in the way, so let’s understand this a bit better.
In your NQT year you will most likely be on a fixed-term contract or in a probationary period. This would usually mean that lenders would be reluctant to lend. However, there are certain lenders who’ll accept teachers in their NQT year or on a probationary contract.
Your case can be further supported by a letter from your Head outlining your performance so far. Teachers will also be viewed as ‘professionals’ in the eyes of many lenders. This will help reduce the ‘risk’ of your mortgage application.
Student Loans
As an NQT you will likely have a student loan which you are paying off. It is important to know that student loans aren’t viewed any differently to any other type of loan when making a mortgage application. Most lenders will look at the monthly student loan payment and deduct that from the overall loan. If you have tens of thousands of pounds in student loan debt, you don’t necessarily need to worry about the entire loan being deducted from your mortgage affordability calculations.
Substitute & Temporary Teachers
You may be concerned that being a temporary or substitute teacher could affect any mortgage application you’d like to make.
Being a substitute or temporary teacher will usually just mean extra evidence being required from you to support your mortgage application. Certain lenders will ask for a 12-month track record of employment to help them properly understand what your earnings are likely to look like per annum and whether it’s likely that you’ll be out of work anytime soon.
Some lenders will ask for as little as 2 terms worth of employment history to check whether you are eligible for a mortgage loan.
Do Teachers get better mortgages?
As we have already found out, teachers are often viewed as professionals by mortgage lenders. This professional status will unlock certain products which others in different jobs do not have access to.
One such lender is currently offering teachers who have a 10% deposit and earn at least £25,000 per annum up to 7x their salary as a mortgage loan. This can make a huge difference to your affordability as most other lenders will offer between 4 – 5x your salary as a mortgage loan.
As a rough example 4.5x salary at £25,000 would be a loan of £112,500 whereas at 7x it could be as high as £175,000. A huge £62,500 difference which could be the difference between buying a house and buying your dream home.
Key Workers
Since the pandemic, the lending landscape has adjusted with it. There are lenders who now offer specific products from Key Workers. As a teacher, most mortgage lenders would view you as a Key Worker, so these schemes could be available for you too. Key worker products can offer better rates to certain borrowers.
How do I find the best mortgage for me?
Getting the best mortgage isn’t just about your profession. There are literally thousands of mortgage products on the marketplace, the best mortgage is often the one which best suits your needs.
Expert mortgage advisors will search the entire marketplace and find you a mortgage with terms which suit you and help you achieve your ambitions as a homeowner.
An investment of half an hour with an independent mortgage broker can save you time and stress.
In half an hour we can get all of the information we need to research the market on your behalf. We will then produce the best options which are currently available for you.
Once it’s time to apply, we will take all of the hard work away from you. We will keep up contact with the estate agents and solicitors and keep things moving along whilst you are busy teaching classes.
Whilst shopping around for mortgages, my partner and I came across Prospect Tree, Phil and the guys have been amazing through the whole process not just with finding the best mortgage but helping with all the life insurance and other bits that come with it. They have dealt with everything leaving us stress-free. So thankful for finding them and grateful for their help! 100% recommend
Prospect Tree Mortgages are independent, and whole of market. So, speak to one of our brokers today and find out how much you could borrow!
If you’d like to learn more about mortgage products and how we can help you, please don’t hesitate to get in touch with our team. We’re here to help you navigate the ever-evolving world of mortgages and guide you toward a brighter, greener home.
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