Teacher Mortgages – Finding a good deal
As a teacher, you might be wondering how difficult it is to find a mortgage. Fortunately, most teachers have no problem finding a competitive deal, as most lenders will see you as a good potential customer with a responsible, reliable job. The main concern, then, is to make sure you get an affordable loan.
Do specific Teacher Mortgages exist?
There are no mortgages designed purely for teachers – you’ll apply for the same standard mortgage deals as everyone else. A lot of mortgage companies see education professionals as valuable customers, though, and offer good rates and loan amounts.
The first step in finding a good mortgage deal is to find out how much you can borrow. Using a Yellow Brick Mortgage and Protection consultant will give you an idea. Lenders will generally offer you between four to five times your income. Making sure that the monthly repayments on the mortgage will be affordable.
Teacher mortgages for First Time Buyers
Getting on the property ladder can be daunting, so it’s well worth seeking support from a Yellow Brick Mortgage Consultant, as there are a lot of decisions to make about the right product for you.
You’ll need to compare fixed rate and variable rate deals, and decide what property value is affordable.
Teacher mortgages to move home or remortgage
If you’re moving to a new home you will usually need to secure a new mortgage deal. Meanwhile, if you’re reaching the end of the fixed or tracker mortgage term, it’s time for a new mortgage application.
Fixed rate and trackers usually last for two, three, five or ten years. When they end, your lender will put you on their standard variable rate, which can be more expensive. So it’s a good idea to shop around at this point to get the most suitable mortgage for your needs.
Teacher Buy to Let mortgages
If you’re looking to buy a property to let out to tenants, you’ll need a Buy to Let mortgage. These are usually easy to find as long as you already own a home and have a deposit of around 25% of the property value. Buy to Let interest rates are usually higher than for a standard residential mortgage.
Some Let to Buy mortgages are not regulated by the Financial Conduct Authority
Mortgages for NQTs
You might be looking for a mortgage as a newly qualified teacher. But during your training your income may have been fairly low, which could affect the size of your mortgage offer. Many NQTs are on temporary contracts or probation, which can deter some lenders.
It’s not impossible to get a loan, though. If a standard bank or building society won’t accept you, there will still be specialist lenders willing to take you on – especially as you are likely to have a long and stable career as a teacher.
Supply Teacher mortgages
Some supply teachers can find it more tricky to get a mortgage deal. Your income is less predictable and often you’re self-employed – but you should be able to find a suitable mortgage by speaking to us.
Most teachers supply payslips to prove their income. Supply teachers usually show lenders recent self-assessment forms instead.
What help is available for Teachers to buy a home?
While there aren’t any schemes or discounts specifically for teachers, you might benefit from one of the government’s Help to Buy initiatives.
On a new-build home, you could get an Equity Loan to help you with a deposit. If you can contribute 5% deposit of your own, the government will top this up with a loan of up to 20%, which is interest free for five years. You then take out a mortgage for the rest of the value.
Another option is Shared Ownership, where you buy a 25-75% share of your home and pay rent on the rest. You can increase your share over time as your salary increases.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
How can Yellow Brick Mortgages help with Teacher mortgages?
Yellow Brick Mortgages has helped many teachers get their most suitable mortgage deal. We spend time getting to know you, your situation and your property plans. That way, we can search the mortgage market on your behalf for the most appropriate products, at the lowest available costs.
We support you right through your mortgage journey. We’ll manage the mortgage application for you, explain each step and chase up estate agents, solicitors and mortgage lenders.
As an appointed representative of The Openwork Partnership, a trading style of Openwork we are registered in England and fully authorised and regulated by the Financial Conduct Authority. We’ll identify the lenders who are most likely to accept you and we’ll talk to you about protection products that could be useful to your situation.
We’re here to take away the hassle of researching mortgages – so you can get on with lesson plans and marking! Contact us today for excellent mortgage advice.