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Mortgages for Teachers – What you need to know
Teachers do not generally have problems when getting a mortgage. Mortgages for Teachers can be available to anyone from a Newly Qualified Teacher (NQT), to those with decades of experience. With any teaching contract, you should be able to prove you have reliable employment and be eligible for a mortgage. Our Mortgage Advisors understand the varying schedules and career paths of Teachers. As a Teacher, you have enough commitments to keep you busy, so let the right Mortgage Advisor find a solution for you. Here is an overview of how Mortgages for Teachers work and some answers to the more common FAQs.
Types of mortgages for Teachers
Whilst there is no such thing as a Teacher specific mortgage there are products and Lenders that are sympathetic to the career paths and intricacies of working as a Teacher.
First Time Buyer (FTB) mortgages are available as part of a Government scheme to encourage people to get on the property ladder. If you’ve never owned property before, then you are eligible for a First Time Buyer mortgage. A Mortgage Advisor will be able to put you in touch with the right Lender to prepare you for this new adventure.
Buy To Let (BTL). This is when you rent out the property to tenants. The deposit for a BTL normally starts out at 25%, or higher, in general than an FTB. This is a great opportunity for Teachers who are looking to make a large investment in the property market.
Mortgages for Teachers are also arranged as part of a remortgaging plan. This is essentially switching your existing mortgage for a new arrangement. It relates to new mortgages for the same property you already own. Many people choose to remortgage their property for several reasons.
You can opt to remortgage your home in order to reduce the monthly payments. This will put back the final payment date, but it’s a good way to consolidate your debts. If you would like more advice about remortgaging your home, speak to a qualified Mortgage Advisor.
Building an accurate picture/affordability and career path of Teachers
If you are a Teacher and you are about to look into arranging a mortgage it’s a good idea to speak to an expert who understands the profession. Teachers can follow different career paths, from the initial training on the job to then qualifying. Newly Qualified Teachers (NQTs) can also apply for mortgages.
You can even apply for a specialist mortgage as an NQT. Lenders will often accept NQTs up to two months before they start their first teaching post. It’s important to go with a Lender that has an understanding of the career paths of Teachers. NQT mortgages have special conditions, for example, the first 12 month post counts as a permanent position.
As an NQT, you might not be able to prove much in the way of employment history. However, with an NQT mortgage, your Lender will be able to make calculations on your expected future salary. You could move into your new home even before you start work.
Mortgages are also available to Supply Teachers. Not all Teachers have permanent contracts, and if you work as Supply, this can cause a few complications. If you’re only working on a contractor basis some Lenders might not see your job as permanent. It’s advisable to go with a Lender who bases calculations on a case by case basis.
Supply Teachers can still apply for mortgages. Certain Lenders will lend more in relation to income and will require less employment history. Instead, some will take into account your personal circumstances and introduce you to different mortgage options.
It’s a good idea to work with a Lender who understands how pensions work for Teachers. Teachers receive a guaranteed pension through the Teacher’s Pension Scheme. If you’re a member of this scheme, some lenders also offer mortgage products aimed at Teachers close to retirement. This gives Teachers more opportunities in the property market.
Sometimes Lenders aren’t keen to lend people into retirement, but the Teacher’s Pension Scheme gives teachers more security. Mortgages for Teachers are therefore more likely to last into their retirement. Speak to a Mortgage Advisor to find out if you are eligible for this scheme if you’re not sure.
Mortgage Protection Products
Mortgage Advisors will also be able to find you the right solution to protect your mortgage once you’ve taken it out. These work similar to insurance. Depending on your Lender, you’ll be able to choose from a range of protection policies. This acts as security to protect your future income and property.
You can opt for income protection for Teachers. This will cover you for mortgage payments if you are unable to work due to illness or injury for example. Income protection policies essentially provide you with more security if anything happens to your contract or income. The conditions of each policy will depend on your Lender. A Mortgage Advisor will be able to help you choose something suitable.
How can a mortgage broker help if you are a Teacher?
Mortgages for Teachers can come with some fantastic benefits, so you need to make sure you work with a Mortgage Broker who understands these specialist conditions.
A Mortgage Broker can help you make sense of specialist underwriting when it comes to temporary contracts and variable income. They can also find you better interest rates and assist you in comparing deals. A Mortgage Broker will be able to enhance your application, whether you’re an NQT or after a holiday home.
Finally, get the support you need from someone who really understands the full range of flexible criteria you’re entitled to as a Teacher. This way you’ll be able to reap the most benefits of your new mortgage deal.
An experienced Mortgage Advisor at CD Financial will be able to answer any queries you have about mortgages. Speak to our friendly team if you’re unsure about what’s available to you and how you can benefit as a Teacher.
Think carefully before securing other debts against your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Some buy to let mortgages are not regulated by the Financial Conduct Authority
YOUR HOME/PROPERTY MAYBE REPOSSESSED IF YOU DO NOT KEEP UP WITH REPAYMENTS ON YOUR MORTGAGE
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