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Generally, teachers are in a strong position for getting a mortgage – you have a steady, competitive income and are in a very secure job. There are some challenges if you’re a Newly Qualified Teacher or work in a supply teacher role, however. Choosing Heritage as your Mortgage Broker will help you compare all the options and find a suitable deal.
How can I find a Teacher Mortgage?
There aren’t any specific mortgages just for teachers, but many lenders will actively welcome a teacher as a customer. At one point the government did create a scheme with special mortgages for key workers such as teachers and NHS staff, but this is no longer available.
The first step in finding a mortgage is to understand how much you could borrow, the types of mortgage available and what you might expect to pay per month.
A mortgage calculator is a good place to start – or you can talk to Heritage and we’ll explain all the details.
Different types of Teacher Mortgages
Some typical types of mortgages are:
First Time Buyer mortgages
There is no ‘First Time Buyer’ mortgage – you will choose from the same mortgage products as someone moving home or remortgaging. The main things to consider are whether you prefer a fixed or variable rate, and whether you want a repayment mortgage or interest only.
Generally, the bigger the deposit you can put down, the lower the repayments on your mortgage will be.
A common reason to remortgage is when you are coming towards the end of a fixed rate deal – your payments can often go up considerably if not. Remortgaging can often save you money at any time, however; it’s just a question of shopping around for the right deal.
Buy to Let
If you’re planning to let a property out, whether you already own it or are buying afresh, you will need a Buy to Let mortgage. These tend to require a higher deposit, typically 25%, and rates are often more expensive.
What do I need to be aware of when looking for Teacher Mortgages?
Teaching has a well-defined career path, which is helpful with mortgages as lenders will be confident that your earnings will increase over time. Your income is an important factor in how much you will be able to borrow, and you will need to prove your salary as part of your mortgage application. Lenders will also look at your credit score.
Newly Qualified Teachers
As an NQT you might be worried about your borrowing prospects, especially as you won’t have earned a lot during training. The good news is that it’s possible to get an NQT mortgage, even before you start a full time teaching position. The secret is to find the right lender – which is where Heritage can help.
Because of their reliance on temporary contracts, Supply Teachers can have more variable income. That can add a layer of complexity to mortgages, especially if you’re Self-Employed.
It shouldn’t be difficult to find a mortgage deal, though – it’s just a question of getting a suitable lender and having the right documents to prove your income.
Mortgage Protection Products
While education professionals have particularly secure jobs, it’s always worth preparing for the unexpected. Mortgage Protection Products are forms of insurance designed to cover your mortgage costs should you die, or be unable to work due to illness or injury.
It is worth exploring life insurance, critical illness cover and income protection once you have successfully secured a mortgage.
How can a Mortgage Broker help if you are a teacher?
The biggest advantage of choosing a Mortgage Broker is that we take the stress out of finding a mortgage. We recognise how busy your life is during term-time, so let us help.
Our expert mortgage advisors will get to know you and your specific financial situation so that we can find you the most appropriate options.
We’ll explore the different types of mortgages with you, and then compare lenders and products to find the most affordable deals. We’ll even complete the mortgage application on your behalf.
Heritage Mortgages are registered in England and authorised and regulated by the Financial Conduct Authority. To find out more about how we can help you achieve your property plans, contact our registered office today.