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When NQT’s (newly qualified teachers) are looking to get a mortgage, they often have a lot of questions. This will answer some of those common NQT mortgage-related questions.
We hope this helps you have confidence that you are possibly able to obtain a NQT mortgage for your situation.
NQT mortgages are more difficult to be accepted for, this is because a newly qualified teacher looking for an NQT mortgage would tend to have little to no industry experience, also when you start on your first posting as an NQT you usually will have an initial 12 month fixed term contract. This is a problem for most high street lenders as it will fall under their fixed-term contractor’s criteria. Most would want either a longer contract or at least 12 months of contracting experience.
In order to qualify for an NQT mortgage you would need to atleast have confirmation of your first post starting within two months of the application, you would also usually need to show evidence you have passed your PGCE.
It may be stated on your contract that you are an Early Careers Teacher, this is a newer term used now in contracts and is treated the same by lenders.
NQT mortgages are difficult to get accepted for this is becuase you have less security compared to a teacher in a permanent position and this it too high a risk for some lenders, but if you have all of the relevant documentation and can provide your NQT contract then there is a good chance that NQTs will be able to obtain an NQT mortgage. You will likely need to place the application with a lender that is teacher friendly, they will understand that fixed term contracts for newly qualified teachers are standard practise, on top of this they will have the experience of knowing that as you become more established you will rise up the pay bandings.there are fewer lenders that will consider newly qualified teachers but there are most definately options.
NQTs are limited to fewer lenders so this can mean lenders that will be flexible on their criteria may not be the lowest cost.
For lenders that do not specialise in NQT mortgages they are wary of the higher turnover of teachers within their first year.
NQTs can borrow up to 5x their annual income depending on their circumstances, the mortgage will still be subject to affordability aswell.
Teachers do not generally get preferential rates when it comes to NQT mortgages, but if you have a good credit score and a good deposit then this will help in obtaining lower rates.
The short answer is yes, pretty much all newly qualified teachers will be on some sort of probation to start with, this is no different to other jobs and most lenders are comfortable with probation periods.
Lenders who are open to considering applications from NQTs are not particulary open to heavy adverse credit but there may be a possibility if the bad credit is minor, it will help if the bad credit was a longer time ago.
Yes, as mentioned previously most lenders will want to see a copy of your contract and evidence that you have passed your PGCE and if these are provided then there should be no reason why an NQT mortgage would not be possible.
Its may also possible to obtain a mortgage using your bursary.
The current rates are as follows:
0% – £125,000
2% -£125,001 – £250,000
5% -£250,001 – £925,000
10% -£925,001- £1.5 million
12% – 1.5million +
More information can be found on the gov.uk website
Conveyancing is the legal process of transferring the ownership of property from one person to another.
The cost for a standard conveyancing transaction is usually around £1700 although it can vary significantly depending on the complexity of the deal and the price of the property.
Its always worth talking to a mortgage broker for doctors as they will be able to ascertain what is the most sutiable more for your needs, the lowest mortgage rate may not always be the best to achieve your goal.
A fee charged by the mortgage lender to carry out a valuation of the property you want to buy. This is usually around £150
Its always worth talking to a mortgage broker for doctors as they will be able to ascertain what is the most sutiable more for your needs, the lowest mortgage rate may not always be the best to achieve your goal.
These are fees charged by the mortgage lender for processing your mortgage application. They can vary from lender to lender but are typically around £999
Its always worth talking to a mortgage broker for doctors as they will be able to ascertain what is the most sutiable more for your needs, the lowest mortgage rate may not always be the best to achieve your goal.
Estate agents fees are paid by the seller of a property to the agent for finding a buyer. The fee is usually around 0.75% – 1.25% +VAT of the sale price but can be higher or lower depending on the agent and the location of the property.
These are costs incurred when moving house and vary depending on how much furniture and belongings you have to move but you would typically pay between £1000 – £1500 for this service.
In order to get an NQT mortgage, it can help to have a specialist mortgage broker that deals with complex income cases on a regular basis, we have experience in dealing with NQTs and we know how to package up your case to the right lenders.
Momentum Mortgages are Mortgage brokers in Kent, If you are looking for a mortgage broker in Kent including Sevenoaks, Tonbridge, Tunbridge Wells, Dartford, Swanley, Orpington, Bromley, or anywhere in the UK then get in touch for a no-obligation strategy call today.
As a limited company director, you’ll need to be able to provide information on your income as part of your mortgage application. This includes the salary and/or dividends you’ve withdrawn from your company, the net profit of the business, and proof that your income can be considered stable.
While your application is slightly more complex than usual, our specialist mortgage advisers are here to guide you. After all, we know the ins and outs of finding a mortgage in these circumstances! By assessing your unique requirements, we’ll be able to find the competitive deals to suit your needs.
Lenders will typically expect your company to have been trading for at least two years. But some will consider one-year trading along with future income projections.
You will also need to provide:
If you have less than one year’s accounts, unfortunately lenders are unlikely to consider you, However one of our core values is preparation and what we can do is help you to plan for your mortgage journey. That’s why we offer a free strategy call so we can discuss your business and what you need to do to make your application look as positive as possible.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
Momentum Mortgages is an Appointed Representative of PRIMIS Mortgage Network registered in England Wales, company number 11806827.
PRIMIS Mortgage Network is a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products.
We will charge a fee of between £99.00 and £999.00. The amount we will charge is dependent on the amount of research and administration that is required.Please refer to the Terms of Business for further information.
The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
The Financial Conduct Authority does not regulate all Buy to Let mortgages
