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We are here to answer any questions you might have about mortgages for teachers.
You will find that we cover all of the basics of teacher mortgages but if there is anything else you want to know then please get in touch with us!
We have a team of fully qualified mortgage advisers who will be more than happy to help.
The answer is generally yes if you work in the following occupations :
You will need to have a contract of employment whether that be on a full time, part time, fixed term, or temporary basis, otherwise you may be considered self employed.
If you are newly qualified then this can lead to issues with some lenders, the reason for this is most NQTs tend to be on fixed term or temporary contracts and most lenders require you to have experience in the industry before they accept income from contract workers.
However all is not lost, there are a few specialist lenders that do have an appetite for mortgages for newly qualified teachers and student teachers.
There are a very select number of lenders that will consider the case within two months of a NCTs start of their first post. If you are on a standard 12 month first post then specialist teacher lenders will still consider this as a permanent position.
This is another common question that we are asked, the answer is yes you can get a mortgage on a fixed term or temporary contract however there are usually a couple of requirments. These tend to be either having a minimum of 12 months contracting experience or at least 12 months remaining on your current contract.
So if you have a good length on your current contract and you have been on fixed term contracts for a while even if they are not neccesarily for the same employer then the better your chances of getting a teacher mortgage.
The other scenario we see quite often is experienced teachers that have been in the profession for at least two years then switching from a permanent role to a fixed term teacher contract or a supply teacher role, even though you would not have much contracting experience in this situation there may still be options for experienced teachers on new fixed term or temporary contracts looking for a mortgage.
If you are a supply teacher then this can be a little more difficult as most lenders want to see at least 12 months contracting experience. However some specialist lenders may want less than this. Supply teachers are treated very similar to zero hours contractors as their is no guaruntee of any work and this can be issued for some lenders especially if you have just started supply work. There are some specialist teacher friendly lenders that will lend to supply teachers with only a few months track record.
Teacher mortgages with bad credit is another common question we get asked. lenders like to see you have a good track record of managing your finances and a bad credit score could mean you are seen as a higher risk.
However, don’t worry there are still mortgages available for teachers with bad credit, there are specialist lenders that cater for those with a checkered past.
It is difficult to say if we are able to help as every case is different but generally speaking the following can really help when it comes to getting a mortgage with bad credit;
– A bigger deposit will open up more lender availability and lower the risk to the lender.
– The more historic the bad credit the better
– its good to know what adverse credit you have, the only way to know this is to check your credit report, we recommend checkmyfile as they look at all three major reference agencies, you can download your report here.
Teacher mortgages are not that different to any other mortgage product, however there are lenders such as teachers building society that have specific mortgages that are only avaliable to teachers but they may not always be the most sutiable lender (or the lowest cost!) For your circumstamces.
The main difference with specialist mortgages for teachers is going to be how the lenders consider the case and treat teachers income, this is called lender criteria and there may be some reasons why you wouldnt quite fit with a high street lenders criteria and need a lender that will be more understanding of the teaching profession. (For example if you are a supply teacher or an NQT)
Teacher mortgages can be available with as little as a 5% deposit however having a bigger deposit will mean a lower rate.
Teacher mortgages follow the same affordability requirments as any other mortgage so this will all be dependant on your income, how the lender assesses that income, your debts and commitments ect. If you want a rough idea then use our mortgage borrowing calculator or for a more accurate figure then book an appointment for a strategy call.
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.
Using a specialist mortgage broker could be the difference between getting your new home or remortgage or not! this is usually because it can really help when a broker understands teachers’ income and different employment contracts and knows how to put this forward to lenders in a positive way that achieves success.
Momentum Mortgages are based in Sevenoaks, Kent, and are specialists in complex cases such as teacher mortgages and many other types of scenarios that don’t fit the standard mold that many high street lenders would like. We help clients all throughout the UK and Kent including Sevenoaks, Tonbridge, Dartford, Bromley, Tunbridge Wells, and more.
Get in touch for a strategy call.
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
