Buying your first home
If you’ve never had a mortgage before, the process can be a bit daunting – but this simple guide will talk you through it.
As a teacher, you’re used to marking your students’ work. But when you apply for a mortgage, it’s you who faces the nervous wait for a result.
Good news though. People in public sector jobs, including teachers, can often be seen favourably by lenders. An old ‘key worker’ mortgage scheme ended in 2019, but it is still possible for you to get special mortgage rates through a professional mortgage.
Of course, teaching encompasses a wide variety of roles and contract types, not to mention a very broad salary scale. So while some teachers may find it easy to get a mortgage, others may struggle to get the deal they want.
Before we look at how professional mortgages work, let’s look at some of the issues that teachers might face when applying for a mortgage.
When you’re looking to buy your first home, you might not have been a teacher for very long. That’s not a huge problem in itself, but in teaching, your first post is rarely a permanent one.
In many cases, teaching careers start out with a 12-month contract. This contract can often be renewed for several years until a permanent role is offered.
For some lenders, this causes concern. Lenders need to know you can pay your mortgage back, and job stability is a key part of that. Some lenders would view the lack of a permanent role as a lack of security.
That’s why for newly qualified teachers, it can help to use a mortgage broker who understands the nature of your job.
Supply teachers can also find things tough when it comes to getting a mortgage. As a supply teacher, you not only have the challenge of proving job stability, you may also have a salary that fluctuates each year.
This can make it hard for lenders to assess what you may able to pay back. But it doesn’t mean a mortgage is impossible.
Getting a mortgage as a supply teacher will depend much on how your employment is structured. You may be:
Those on payroll may find it easier to show proof of earnings. But if you have a history of self-employment, your tax records can be used to show proof of income. Lenders will usually want to see records for at least the last two years.
Wherever you are in your teaching career, a professional mortgage may give you the best chance of a great offer.
Professional mortgages are designed for trusted professions like teachers, doctors, dentists, accountants and solicitors. Jobs which are often seen as a more reliable long-term risk.
You won’t find professional mortgages everywhere. They are only available from certain lenders. But these lenders will often be more accepting of your occupational challenges.
You may find these lenders can provide better interest rates, more generous offers and reduced-deposit mortgages for teachers in many cases.
At Wesleyan Financial Services, we have access to a range of professional mortgage lenders. We can help you find a great deal.
Every professional mortgage lender has its own eligibility criteria. But in many cases, deals are available to wider educational professionals as well as teachers.
It may be worth exploring the option of a professional mortgage if you are:
Sometimes, you may need to show certain professional qualifications. For example, nursery nurses and teaching assistants may need to be qualified to NVQ Level 3. Other lenders might require you to be registered with a recognised teaching body.
Mortgage advice is often aimed at those on the first rungs of the housing ladder. But if you’re looking at investing in property when you’re older, you may still qualify for a professional mortgage as a retired teacher.
You’ll still need to prove affordability of course. But as the Teachers’ Pension Scheme pays a defined benefit each year, it’s seen as a stable source of income. More stable, perhaps, than a salary.
Bear in mind that you may need to find a specialist provider. A lot of mainstream banks will only lend up to the age of 70.
Whatever your circumstances, we can help you find a professional mortgage that works for you. As a broker, we can bring you exclusive professional mortgage deals you won’t find on the high street.