If you are in the teaching profession and looking for a mortgage, we can provide expert advice on the options available to you, including those from specialist lenders. We can help you understand how much you can borrow and what the typical mortgage rates are and present you with the best teacher mortgages available.
Welcome to Heritage Financial Planning, specialist mortgages for teachers
We have many years of experience in securing mortgages for teachers and helping them get on the property ladder. Whether you are a newly qualified teacher looking to purchase your first home during your induction period, a supply teacher, an established teacher, or even a retired teacher, we can help.
We have access to specialist lenders beyond the high street lenders, offering professional mortgages to teachers and other professions, such as dentistry.
We help both first-time buyers and homeowners at every teaching career stage:
- Experienced teachers
- Early Career Teachers (ECTs) (formerly Newly Qualified Teachers)
- Supply Teachers or those on temporary or fixed-term contracts
- Retired Teachers
- Learning Support Assistants (i.e. teaching assistant)
Is a teacher’s mortgage different to a regular mortgage?
While there is no specific ‘teacher mortgage’ as such, if you are a teacher, it can be easier to obtain a mortgage compared to other applicants. Lenders are likely to look favourably upon you because teaching is considered a very stable profession.
In addition to high-street lenders, Heritage has access to other lenders who specialise in catering to the education sector and teachers in general, such as the Teachers Building Society.
As teachers provide a vital service, if you work in state education, you may even be eligible for special mortgages, such as a key workers mortgage, which offer higher income multiples.
What is the eligibility criteria for a teacher mortgage?
Early Career Teacher/NQT mortgages
‘Early Career Teacher’ replaced the term ‘Newly Qualified Teacher’ in 2021, and the induction period was increased to two years. As a result of this, it is likely you will be employed on a fixed-term contract during this period, with the promise of permanent employment upon successful completion.
If you are in your first teaching position and have no employment or credit history, some lenders may have concerns and prove unwilling to approve you for a mortgage.
If this applies to you, then it’s wise to contact a mortgage broker such as Heritage, who has experience in providing specialist mortgage advice.
We help newly qualified teachers in the following ways:
- We can help you secure a mortgage BEFORE you have even started your first job if you have a contract offer.
- Even though you are on a fixed-term contract, we know lenders who will consider this a permanent employed position and your mortgage application will be treated in line with the standard affordability criteria.
Supply teacher mortgages
Most lenders consider mortgage applications from supply teachers. However, they may treat you as a contractor, which can mean a stricter eligibility criteria. But there are specialist lenders out there who are more relaxed when it comes to supply teachers.
Generally, if you can provide evidence of your employment history as a supply teacher, it will strengthen your mortgage application. In terms of affordability, they will usually take a certain percentage of your contract to reflect the time taken for holidays and sickness, which could be unpaid.
Retired teacher mortgages
If you are a retired teacher or considering lending into your retirement, a standard high street lender may reject your mortgage application on the basis of age, especially if you are close to state retirement age.
However, as a teacher’s pension is a ‘Defined Benefit’ pension and the income is effectively guaranteed, some lenders consider this in their affordability criteria and allow lending into retirement. The potential of a longer mortgage term can help reduce your monthly repayments, so it’s very wise to consult a professional mortgage broker to help secure a deal.
Why choose Heritage Financial Planning to source a teacher mortgage?
As experienced mortgage brokers, we can offer a first-class service to those in the teaching profession. We are independent, meaning that we can access more lenders than are available on the high street, as well as specialist professional mortgage lenders.
We will make a thorough assessment of your personal and financial situation and seek out the best mortgage products with the most competitive interest rates available.
Contact us today to make an appointment for a free initial consultation.
Frequently asked questions about teacher mortgages
What is the difference between a repayment and an interest-only mortgage for teachers?
A repayment mortgage is one in which you make payments to both the capital and the interest during the term of the mortgage. The idea is that over time, the mortgage amount is eroded and paid back entirely.
An interest-only mortgage, on the other hand, is where you only make interest payments, so the capital value of the loan is not reduced. At the end of the mortgage, the outstanding loan amount will still need to be repaid.
Interest-only mortgages are seen as higher risk as the debt will still need to be repaid, which could be from selling the property or selling investments such as ISAs and pensions. Therefore, interest-only mortgages for residential properties are considered high-risk, and repayment mortgages are often more appropriate.
How much can teachers borrow?
You can usually borrow between four and five times your income. Although some lenders will even go up to six times your income if you qualify for a professional mortgage, which teachers and the education sector often do.
However, any ‘committed expenditure’ such as car finance, loans, credit card repayments and student loans may reduce the amount that you can borrow. If you are applying for a joint mortgage, lenders will take into account both incomes.
To give you a more accurate idea of the amount you can borrow, it’s valuable to speak to an independent mortgage adviser.
Are there special mortgages for teachers?
While there is not a special ‘teachers mortgage’ as such, there are certain lenders who cater to teachers specifically, such as the Teachers Building Society. As an independent mortgage broker, we always consider mortgage deals from standard lenders against specialist lenders.
Depending on your circumstances, a specialist lender may look more favourably at your circumstances if you are newly qualified or a supply teacher. You may also qualify for a professional mortgage, in which case you may be able to borrow more than a typical lender.
Are there Help to Buy mortgage schemes for teachers?
In addition to professional mortgages, teachers may also be eligible for government schemes. For example, the Help to Buy scheme, which is a type of equity loan and Shared Ownership. These schemes apply to all eligible borrowers, not just teachers.
Do teachers get special mortgage rates?
Lenders recognise the stability of the teaching profession and the potential for career progression, which can make them attractive borrowers. As a result, some lenders offer reduced mortgage rates or products tailored to education professionals.
