Can teachers get better mortgage rates?

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.

Mortgages for newly qualified teachers

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. 

Making mortgages easier

At Wesleyan Financial Services, we match you with a Financial Consultant who works specifically with teachers. By liaising with lenders on your behalf, we can make your case and ensure your long-term prospects are taken into account.

Wesleyan Financial Services offers fee-free mortgage advice. We will be paid a fee by the mortgage lender upon completion of the loan.

Start your search by booking an appointment today.

Your mortgage is secured on your home. Your home may be repossessed if you do not keep up repayments.

Mortgages for supply teachers

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:

  • On a school’s payroll
  • An agency worker paid through your own limited company
  • Self-employed as a sole trader

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.

Professional mortgages for teachers

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.

Who can get a professional mortgage?

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:

  • A teaching assistant
  • A nursery nurse
  • A children’s therapist

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.

Getting a mortgage as a retired teacher

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.

Your mortgage is secured on your home. Your home may be repossessed if you do not keep up repayments.

You might be interested in…

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.

Get a mortgage

With access to deals from a range of leading lenders, Wesleyan Financial Services can take the stress out of your mortgage search.

Financial advice for teachers

Get educated on your financial options, with specialist advice on a range of subjects from Wesleyan Financial Services Consultants.