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Teacher Mortgages – Some Questions Answered
Do teachers get special mortgages?
There are no specific mortgages out there for teachers but there are, however, lenders who understand your career status and are more aware of how your job role works and your pensions.
If you are a newly qualified teacher or a supply teacher, it can be well worth looking for specialist lenders who know how your contracts work or your pensions work. You can find these easily by speaking to a Mortgage Broker and getting expert advice on the mortgage market.
How much can I borrow as a teacher?
The amount that you will be able to borrow will be based upon your annual income and your current credit score. Lenders will make you undergo an affordability check to ensure that you can afford the repayments on your mortgage.
If you find yourself in adverse credit, there are still going to be options for you but sometimes it can be worth waiting for your credit to build back up to get access to more exclusive rates.
What Mortgage help can I get as a teacher?
Depending on what type of mortgage you are looking for there is help available if you should need it. If you are remortgaging then you will have to undergo the same checks and could opt to go with a specialised lender who is going to understand your circumstances more.
Teacher as a First Time Buyer
If you happen to be a First Time Buyer, then there are several schemes that you can access. There were several new schemes released in the summer to help more people onto the property ladder.
You can access the First Homes Scheme which was launched in June 2021 which aims to help Key Workers such as teachers onto the mortgage market with a smaller deposit option.
There is also the Help to Buy Scheme which is when you provide a 5% deposit and then the government will give you another 20% to put towards a deposit for a property in the form of a loan. The loan is fixed for the first five years and interest free and can be a good option to approach lenders with a bigger deposit.
Is there any more Mortgage help for teachers?
If you cannot afford a property in its entirety but are still looking to invest you could use the Shared Ownership scheme. The scheme allows you to buy as little as 10% of a property and pay discounted rent on the remainder until you can pay for it outright.
There is also the Mortgage Guarantee Scheme, which was released in April 2021, it allows more people to access 91-95% loan to value mortgages with only a 5% deposit. The property needs to be under the value of £600,000.
What if I am a Self-Employed, contracted, supply or a freelance teacher?
If you fall into any category of contracted or Self-Employed then the difference is going to be in how you prove your income. As a PAYE applicant it is easy to access your payroll and clearly see your stream of income. If you are Self-Employed or work through contracts, then you are going to have to gather the documents you need to prove your income.
If you work through temporary contracts, gather as many as you can, lenders can ask for contracts dated back as far as three years. You will need to gather all your upcoming contracts too – if there is no clear annual income then a Mortgage Lender will work out an average annual income.
As a Self-Employed teacher you will more than likely have an accountant, you will need to gather your SA302 forms as well as your tax overviews. If you do not have an accountant, it can be worth seeking one as some lenders will require you to approach them after speaking with a chartered accountant and getting your finances into order.
How can a Mortgage Broker at Spot On Mortgages help me?
Here at Spot On Mortgages we have access to the independent mortgage market as well as being authorised and regulated by the Financial Conduct Authority. This means we can access mortgage deals that are not going to be offered by mainstream lenders or on the high street and we are qualified to give the mortgage advice that you seek.
We can help to advise you on your mortgage application as well as finding specialist lenders who are going to get you the most out of your mortgage. Speak to an expert member of our team today.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.Fi
Why Spot On Mortgages to this?
Other types of mortgages are available such as Variable, Cashback, Capped, Collared & LIBOR.