Mortgages for teachers

Highly trained teachers can often be eligible for specialist deals or schemes that can help them get on the property ladder.

In this article, we will explore in greater detail the options available for teachers seeking a mortgage, including specialised deals and schemes. By understanding the different options available, teachers can make an informed decision about the best way to finance their home purchase.

Do teachers get cheaper mortgage rates?

As a teacher, you may have access to a wider range of mortgage lenders who are willing to consider your application, which could increase your chances of qualifying for the best interest rates available. Additionally, you may be eligible for other benefits when taking out a mortgage, such as lower deposit options and more flexible criteria for variables such as income and contract type.

Are there specific mortgages for teachers?

However, it is important to note that there is no standard “teacher mortgage,” and you will need to shop around and compare different lenders’ offerings to find the best deal for your individual circumstances.

To increase your chances of success, it may be helpful to work with a specialist mortgage broker who has experience working with education sector professionals and can help you navigate the process of securing a mortgage.

While better mortgage rates for teachers are not guaranteed, a knowledgeable broker can help you identify the lenders who are most likely to offer favorable terms and ensure that your application is in top shape?

Speak To an Expert

Whether you’ve just had an offer accepted on a property and you’re ready to go, or you’re simply wondering how much you need to save for a deposit, it’s never too soon to reach out.

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Can you borrow more?

The amount that teachers can borrow on a mortgage varies depending on a variety of factors, including their income, credit score, and debt-to-income ratio. Generally speaking, mortgage lenders will look at your income and expenses to determine how much you can afford to borrow.

They will also take into account other factors such as the size of your deposit, the property you are interested in, and the length of the mortgage term.

There are some mortgage schemes available specifically for teachers that may allow you to buy a property with a smaller mortgage than would be typically required. Some of these schemes may offer more flexible lending criteria or other benefits, such as lower deposit requirements or special rates.

Types of Schemes available

There are several home buying schemes available that may be helpful for teachers who are looking to buy a home. Here are a few examples:

First Homes Scheme: The First Homes scheme is a government initiative designed to help first-time buyers get onto the property ladder by offering new-build homes at a discount of at least 30% off the market price. The scheme is available to first-time buyers (including teachers) who meet certain eligibility criteria, such as having a maximum household income of £80,000 per year (£90,000 per year in London).

Under the scheme, local authorities and developers are required to offer a minimum of 25% of new-build homes to eligible first-time buyers at a discount. The discount is applied as a percentage of the market value of the property, rather than a fixed amount, and is secured as a long-term covenant, meaning that the property must be sold at a discount to future buyers.

The aim of the scheme is to make home ownership more affordable for first-time buyers, particularly in areas where high house prices may make it difficult to save for a deposit or get a mortgage. The scheme First Homes has been available since 2021.

Shared Ownership Scheme: This scheme allows you to buy a share of a property (usually between 25% and 75%) and pay rent on the remaining share. This can be a good option for teachers who can’t afford to buy a property outright but want to build equity over time.

Key Worker Housing Scheme: Some local authorities offer key worker housing schemes that provide affordable housing for teachers and other essential workers. These schemes may offer discounted prices or shared ownership options.

Teacher-specific mortgage schemes: Some mortgage lenders offer special mortgage schemes for teachers that provide more favourable rates, terms, or other benefits. These schemes may also have more flexible lending criteria or lower deposit requirements

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

How can Strive Mortgages help?

Working with a mortgage broker like Strive Mortgages can be a valuable resource for teachers who are looking to get the best mortgage for their individual circumstances. Here are some ways in which a mortgage broker can help:

Access to a wider range of lenders: Mortgage brokers often have access to a wider range of mortgage products and lenders than individual borrowers. This means that they may be able to help you find a mortgage that is better suited to your individual needs and circumstances.

Expert advice: A mortgage broker can provide expert advice on the different types of mortgages available, as well as the pros and cons of each. They can also help you understand the various fees and charges associated with taking out a mortgage, and how these can affect your overall costs.

Help with the application process: A mortgage broker can help you prepare your mortgage application, ensuring that all the required documentation is in order and that you have provided all the necessary information to the lender.

Negotiation of better terms: A mortgage broker may be able to negotiate better mortgage terms on your behalf, such as a lower interest rate or reduced fees.

Support throughout the process: A mortgage broker can provide ongoing support throughout the mortgage process, answering any questions you may have and helping to ensure that everything runs smoothly.

For more information on mortgages for teachers, please contact a member of the Strive team, by emailing info@strivemortgages.co.uk or call us on 01273 002697.

Frequently asked questions about mortgages for teachers

Will lenders accept my increased pay in September? 

Many teachers receive an annual incremental pay increase each year in September. Some lenders may take this increased income into consideration for affordability purposes up to 3 months in advance of receiving the rise, provided that it is confirmed by the school in writing. However, not all lenders will consider this, so it’s important to check with each lender’s specific criteria.

Can I get a mortgage as a retired teacher 

As a retired teacher, you may still be able to obtain a traditional mortgage based on your retirement income. However, if your retirement income is limited, lenders may also offer you other options such as equity release mortgages or retirement interest-only (RIO) mortgages. 

Do mortgage lenders accept TLR payments? 

Yes, TLR 1, 2, and 3 can be considered as additional income for mortgage purposes, alongside salary, overtime, and other income. This is because TLR (Teaching and Learning Responsibility) payments are a form of extra payment for teachers who take on additional responsibilities, such as leading a department or coordinating a subject. However, not all lenders may accept TLR payments as income, and the amount that can be considered may vary between lenders.

Which lenders are best for teachers? 

There are no lenders that specifically offer mortgages for teachers, with the exception of Teachers Building Society, who specialise in education professionals. However, some lenders may be more accommodating to the unique circumstances that teachers may face, such as temporary contracts and lower starting salaries. Which lender is best for you will depend on your individual circumstances, including your credit score, income, deposit size, and other factors.

What mortgages are available to teachers? 

Teachers have access to the same types of mortgages as anyone else, including fixed rate mortgages, variable rate mortgages, tracker mortgages, offset mortgages, repayment mortgages, and interest-only mortgages. However, some lenders may offer specialised mortgages for certain professions, including teachers, which may have more favourable terms and conditions. 

Can I get a mortgage as a newly qualified teacher?  

Yes, it is possible to get a mortgage as a newly qualified teacher, but it may be more challenging due to fixed-term contracts and lower starting salaries. However, there are some professional mortgages that consider career progression, which may offer more favourable terms and conditions.

Can I get a mortgage as a substitute teacher? 

Yes, it is possible to get a mortgage as a substitute teacher, but it will depend on the lender’s specific criteria. Lenders will typically want to see proof of income and may ask for documentation such as a contract or employment history. Other factors that may be considered include credit score, affordability, and deposit amount.

Can I get a mortgage as a primary school teacher? 

Yes, primary school teachers can get a mortgage as long as they meet the lender’s requirements for income, credit score, and affordability. Lenders will also consider factors such as job stability and employment history when assessing your mortgage application.