Teacher Mortgages
Get in touch for a free, no-obligation chat about how we might be able to help you.
It's never too early to get in touch
Meet the Author
Adam Nunn
Meet the Author
Jon Porter
Teacher Mortgages
Adam Nunn and Jon Porter are back to explain how the mortgage process works for teachers.
Are mortgages for teachers easier to get? Are there many mortgage lenders for teachers? How do I qualify for a mortgage as a teacher?
The process of arranging a mortgage for a teacher is generally the same as for any other occupation. How easy it is will depend on your individual circumstances and any complexities – such as inconsistent income, high borrowing requirements or an impaired credit history.
Some teachers will have heard of the Teachers Building Society – the only lender offering mortgages specifically for teachers. But many other lenders have criteria that could be beneficial or favourable to teachers or working professionals.
Generally speaking, the challenges teachers face with a mortgage application are usually income-related. For example, if a teacher is in training, they’re usually on a fixed contract – or a newly qualified teacher may be on a short-term contract.
It all depends on your individual circumstances and your requirements. We’ll seek out lenders with criteria that are more favourable to teachers or training professionals.
Can I get a mortgage if I’m a teacher and a first-time buyer?
Yes, definitely. The criteria tend to make it very straightforward for a first-time buyer who’s a teacher.
Can I get a mortgage as a newly qualified teacher?
Yes. Training teachers are typically employed on a fixed-term contract and many lenders might have quite strict requirements around that, because of your lack of employment history.
But some lenders recognise the high demand for teachers and the likelihood of your contract being renewed. For newly qualified teachers, there are often various options, and particularly with those lenders that have criteria for teachers.
How much can a teacher borrow for a mortgage?
It’s generally around 4.5 times the applicant’s income. In recent years, though, lenders have started to increase their multiples, and now five to 5.5 times is more common for first-time buyers or professionals in training.
Some lenders will even consider six to seven times your income, subject to other criteria. It’s all down to affordability, and we can explain that in more detail based on your circumstances.
Where the lenders might lend six or seven times income, it’s often for a trainee teacher going into a newly qualified role. They lend more based on the expectation that as you gain experience over the next three to five years, your salary is going to go up.
What are the eligibility criteria for teachers? How is affordability assessed?
There isn’t anything specific to teachers in mortgage eligibility or how affordability is assessed. Every lender has different criteria, which is why advice from a broker is crucial to fully understand your borrowing options.
With any mortgage application, you need to provide proof of your ID, your address and income. We also need recent bank statements, a copy of your credit report and proof of your deposit.
Depending on how you’re employed as a teacher, whether it’s permanent, on a fixed contract or via an agency, you might have to provide a few additional documents. That could include a copy of your contract or a longer employment history if you’re doing agency work.
Affordability assesses your ability to repay the mortgage over the term, considering your age, income, commitments, any dependents and any property expenses. That’s how a lender’s overall affordability assessment determines whether you can borrow the full amount or whether they will reduce your borrowing capability.
Speak To an Expert
Our expert knowledge ensures that we give you access to the widest range of services available in the financial market to find the right advice for YOU.
Is there any help for teachers buying a house? Are there any special mortgage schemes available for teachers? Do teachers get a housing discount?
There isn’t anything specific like a government-backed scheme or support for teachers.
There are sometimes exclusive mortgages – we mentioned earlier the Teachers Building Society which offers exclusive products to teachers.
Again, it’s about presenting your case. Your income and where you are on your career path can affect what’s available.
Another key point to mention is that most teachers obviously start their contracts in September. Some lenders can actually offer you a mortgage based on a future contract, so you can have moved into that property when you start in September.
Can I get a mortgage on a PGCE?
Obtaining a mortgage whilst you’re completing your PGCE is typically difficult. Not many lenders usually accept bursaries or student funding as an income, but once you’ve secured a teaching position, many lenders will consider you based on your signed contract.
So if you’re approaching the end of your PGCE and you’ve got a confirmed start date, you could apply for the mortgage ahead of starting that role. You just need to show the lender you’ve qualified and prove that start date.
You might be in teacher training or doing a PGCE, but if you’re buying with a partner or you’ve got the support of a family member, you may be able to arrange a mortgage before you qualify. That’s possible if your partner or family member’s income is suitable, even if yours isn’t just yet.
Can I get a mortgage as an agency worker?
Yes. For an agency worker, it’s all about your experience in the industry, how long your contracts are and whether they have been renewed.
If you previously worked as an employed teacher but changed to agency, your prior experience can be taken into consideration. It’s about the timing, how long you’ve been under an agency, and your future contracts.
Can I get a mortgage on a temporary teaching contract?
Yes, we’ve talked about fixed-term contracts for training or newly qualified teachers.
A temporary contract follows similar principles. A short-term contract does present a bit of a risk to a lender.
They are therefore interested in your overall industry experience, the duration of the contract, and whether or not you’ve had contracts renewed in the past.
Can supply teachers get a mortgage?
Yes. Again, lenders look for the history and your likely employment going forward. You need to prove a track record over six or 12 months.
You could be a supply teacher for a three-month period, then have a break. We need some consistency, as the lender will take an average of your earnings over several months.
What if I have bad credit as a teacher? How does this affect the process?
Each lender has a specific policy around bad credit. It doesn’t matter whether you’re a teacher or in any other occupation, as the criteria per lender applies to everyone.
We always strongly recommend that anyone looking to arrange a mortgage with current or past bad credit seeks advice from a broker at the earliest opportunity.
We can outline the options, costs, lenders and interest rates for you. If you’re not in a position to proceed right now, we can give you some advice on what to do. If there are ways to make your position better, we’ll create a plan together. The sooner you get advice on that, the better.
Can I get a Buy to Let mortgage as a teacher?
Yes, a teacher is able to get an investment property, just the same as anybody else.
You’ve demonstrated throughout how a mortgage broker can help – is there anything you’d like to add?
Just to emphasise that you can speak to us for free – there’s no cost for the initial consultation. So if you think you’re not in the greatest position because of a lack of experience or because you’re training, let’s have a chat.
Many different lending propositions may be suitable – whether that’s buying with family members or use of a partner’s income. We can confirm your position, so don’t be afraid to seek advice.
One thing to add is that teachers working for boarding schools may live in tied accommodation, and a few lenders have specific lending criteria for that situation. It lets you buy a property to rent out, so that when you finish working for that school, you already own a home.
Lenders like teachers, as you’re professionals with a clear career path. Various lenders offer professional mortgages that teachers can benefit from.
Key Takeaways:
- While the mortgage application process is the same as for any other occupation, lenders are generally welcoming to teachers due to their professional status and clear career progression.
- Income-related issues, such as being on a fixed-term contract as a trainee or newly qualified teacher, are the most common challenges faced during the application process.
- Teachers can often borrow more than the standard 4.5 times their income, with some lenders offering five to 5.5 times, or even six to seven times based on the expectation of future salary increases.
- It is possible to apply for a mortgage while still in training or completing a PGCE by using a signed contract for a future teaching role, or by purchasing with a partner or family member.
- Seeking advice from a mortgage broker is essential for finding lenders with criteria favourable to teachers and for navigating complexities such as different contract types or a history of bad credit.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.