Mortgages For Teachers

smiling young teacher near the board

It’s fantastic to hear that you have committed to the education of our future generations and there is good news, as there are certain benefits you might be entitled to when you start looking for a mortgage. Mortgages for Teachers can provide you with personlised underwriting allowing for variable income, various contract types and enhance affordability.

So, if you’re a teacher and you’ve been worried about finding the mortgage that works best for you, don’t worry because you’re in the right place. We have specialist mortgage advisers who know what it takes to find the right mortgage for you.

Who Qualifies For Teacher Mortgages?

When applying for a mortgage as a Teacher, you need to be a fully qualified Teacher, Lecturer, or Supply Teacher.

Are there Mortgages for Newly Qualified Teachers?

As a newly qualified teacher you might struggle to find lenders that are willing to offer you mortgages. However, its not all bad news, with our professional help, support and access to the whole market and specialist lenders, you’ll find it easier to get access to a suitable mortgage.

We know that with some schools your first contract will either come with probation periods or even be a short term fixed contract until you finish your NQT years. Our lenders will consider these contracts as your income is usually due to increase as you gain experience. We can even access enhanced affordability, giving you even more flexibility.

I only have a 5% deposit, can I still get a mortgage?

Over the years the government has offered various support programmes that are designed specifically for people who work in education, like the Key Worker Mortgage Scheme. Unfortunately the lenders that once offered mortgages using this scheme are no longer doing so, however, the help to buy scheme (Equity loans and Shared Ownership) allows first-time buyers to get on the property ladder with only a 5% deposit. Some of these schemes are due to end over the next couple of years and it unclear if there are any schemes set to replace them.

There are however, plenty of mortgage lenders in market that offer 95% mortgages, even on new build properties and as a teacher you even have access to your very own building society.

Can I get a mortgage as a Supply Teacher?

As a supply teacher your income isn’t always consistent and can be less reliable because of the nature of supply teaching. This can then cause problems when you try and apply for mortgages. There are some specialist lenders in the market that are able to provide mortgages to supply teachers.

In these instances the income will usually be taken as average on what you have earned over certain periods of time. For example 2 academic terms or a complete 12 month period. The income is usually then annualised over a set number of weeks in the year. If you are supply teacher, it highly advisable to seek professional advice over your options.

I’m an older teacher, can I use my Teachers’ Pension for a mortgage?

Great News! As a Teacher, you could qualify for some best pension schemes in the market and for some even better news, you can potentially use this pension to obtain a mortgage beyond retirement.

If you’re entering retirement as a Teacher or you’ve already retired, you can still get a mortgage and with many lenders in the market now able to offer conventional mortgages with no upper age limit, your pension can be used to calculate the affordability for a mortgage. These options are suitable for those looking purchase new homes, move homes, buy investment properties and remortgage.

It wasn’t that long ago that many people took a mortgage on a interest only basis and unfortunately are not in positions to redeem their mortgage. As a Teacher your pension, along with other state benefits may mean that you have options, if you are one of these people and wondering what happens next.

Can I Still Get A Mortgage With Bad Credit?

If you have bad credit on your digital self, whether that is from a previous IVA or bankruptcy, CCJ’s or defaults, missed payments or debt management plans, then not all is lost, there are specialist lenders that might help. They cannot help everyone, but there could still be plenty of options. We have listed some considerations if you have a tainted credit history;

  • Bankruptcy & IVA’s are widely acceptable after they have been discharged for 3 years. However, if you have a larger deposit, then options may be available, if they are more recent.
  • Debt management plans are widely accepted as long as they have been place for 12 months or more and you can demonstrate an excellent conduct of the account.
  • Defaults & CCJ’s are widely accepted, however, there are many different solutions and options here. So, even if you have something outstanding lenders are willing to take a view.
  • Missed payments are widely accepted however, it depends on what the missed payment was on, the reason for the missed payments, how payments have been missed and how long ago.
  • Payday Loans are widely accepted if they are over 12 months ago. They are frowned upon when applying for a mortgage as they are considered a last resort option. In all cases we would need to understand why the loan was taken.

In any case, you are always best to seek advice from a mortgage broker, someone who is whole of market will be able to review all your options.

Why Speak with a Robin Mortgage Design Mortgage Adviser?

Robin Mortgage design is a community of experienced mortgage advisers. We have access to the whole market and have helped people all over the United Kingdom to finance and refinance their properties. So rest assured that with us, you are in safe hands.

What’s Next?

Understanding your mortgage options is vital when applying for a mortgage, not only will it help ensure that you understand the mortgage you’re applying for, but will also ensure that you get the right mortgage for your needs.

Speaking with a mortgage broker is also a great idea, as a mortgage broker will be able to review all the lenders available to you and whether you tick all the boxes for that’s lenders criteria. Believe it or not, not every lender has the same policy!

We hope you found this article about Mortgages with one years accounts helpful and we wish you all the best with your mortgage application.

If you would like to discuss your options with a friendly, professional human being, then our team at Robin Mortgage Design would be happy to help. Just give us a call on 0333 242 3863 or visit our contact us page, and fill out our online enquiry form.

Good Luck with your mortgage!

Written by Mark Travell, Director of Robin Mortgage Design

Now it’s time for the legal bit. YOUR HOME BE REPOSSESSED IF YOU DO NOT KEEP UP TO DATE WITH YOUR MORTGAGE PAYMENTS. Robin Mortgage may charge a fee for arranging your mortgage. A typical fee would be £395.00 but could be up £1,495.00 depending on your circumstances.

The information in this blog is only valid for the date it is written.