If you are a teacher looking to buy a home, the good news is that mortgage lenders tend to consider teachers favourably, as it’s considered a stable profession.
Teachers may be offered a mortgage up to five times their income, with specialist lenders offering up to six times based on career stage and progression. As key workers, teachers often qualify for home-buying schemes like the First Homes Scheme to help them get on the property ladder.
This blog will explore mortgages for teachers, exploring how their salary, career progression, and specialist teacher mortgage products can help them buy a home.
For advice on teacher mortgages from an experienced mortgage broker, contact Goldmanread.
Can you buy a house on a teacher’s salary?
Clearly, this depends on the property price as well as your salary. While a lot of teachers may be priced out of more expensive areas like central London, it’s possible to buy a house on a teacher’s salary in most places in the country.
That said, it may be possible to buy in more expensive areas with help from a buying scheme, more information on which can be found below. These schemes, combined with the stable and progressive nature of a teaching career, provide a solid foundation for teachers to secure mortgages.
How does salary and career progression affect mortgage affordability?
Salary is a crucial factor for lenders when calculating mortgage affordability. Teachers generally have a structured career path with regular salary increments, which provides most lenders with confidence in the teacher’s ability to make consistent mortgage repayments.
How much can a teacher borrow for a mortgage?
The amount a teacher can borrow for a mortgage typically depends on their income and career stage. Generally, teachers can secure mortgages with income multiples between 4.4 and 5 times their salary.
In certain circumstances, particularly for those at more advanced career stages, a few lenders may offer a professional mortgage product, offering up to six times the income. This can significantly increase the purchasing power of teachers, making homeownership more achievable.
How to improve your mortgage application as a teacher
There are a number of things you can do to help improve your mortgage application as a teacher.
Work with a specialist mortgage broker
It is essential to work with a specialist mortgage broker who understands the unique aspects of a teacher’s income, benefits, and career progression. A knowledgeable broker like Goldmanread can navigate the lending market, identify suitable lenders, and secure the best mortgage structure, rate, and incentives available.
Review your credit score
One of the most important factors in qualifying for a mortgage is your credit score. A strong credit score will give you access to better rates and incentives.
It’s important to check your credit file for any unexpected adverse credit, such as missed payments on cards or loans. In some circumstances, it may be possible to have these removed prior to making an application.
If you have a history of adverse credit and it’s not possible to remove it, don’t give up hope. Speak to a mortgage broker who can direct you towards lenders who offer bad credit mortgages for teachers.
Manage your existing debts
It’s important not to miss any loan payments prior to applying for a mortgage. Generally speaking, one missed payment on an unsecured credit commitment, such as an overdraft or credit card, won’t cause an issue when arranging a mortgage, but any more than this could be a problem.
Any missed payments on secured loans, such as mortgages and car loans, will be viewed much more seriously by lenders.
Save a larger deposit
While it is possible to purchase a property with as little as a 5% deposit in some cases, having a higher deposit allows you to access more loan products and better interest rates.
Look at mortgage schemes
There are various mortgage schemes available in the UK which teachers may be eligible for, including:
The First Homes Scheme
This is an equity loan scheme offering substantial discounts on new homes to first-time buyers and key workers. Homes are sold at a minimum of 30% below market value to ensure affordability. To qualify, buyers must have a household income under £80,000 (or £90,000 in London) and secure a mortgage for at least 50% of the discounted price.
This scheme is available exclusively for new-build properties and aims to support community housing stability by making homeownership more accessible to key workers and local residents.
Shared Ownership Scheme
This allows teachers to buy a share of a property, typically between 25% and 75%, and pay rent on the remaining portion. Buyers can increase their ownership share over time through a process called “staircasing.”
Look at specialist mortgages for teachers
There are lenders that offer specialist products suitable for teachers that offer high income multiples and more flexible terms.
For example, the Teachers Building Society (TBS), established in 1966, provides mortgage and savings products tailored to the unique financial needs of people in the education sector.
Various other lenders, such as Halifax, Nationwide, Skipton Building Society, and Santander, offer professional mortgage products suitable for teachers due to their stable and high-skilled job status.
Can a supply teacher get a mortgage?
A supply teacher can get a mortgage, but they may face certain challenges. As a supply teacher, you are likely on a temporary teaching contract, which some lenders view as high risk.
However, there are lenders that specialise in offering tailored mortgages for self-employed contractors, including supply teachers.
Can a trainee teacher or newly qualified teacher get a mortgage?
Trainee teachers and newly qualified teachers (NQTs) can get mortgages, but they will undoubtedly find it more challenging because of their lack of employment history and the temporary nature of their contracts.
Specialist lenders like the Teachers Building Society will offer NQT mortgages based on a confirmed job offer or even before they start working, treating initial contracts as permanent roles. These types of products are usually only available through a broker.
Are there special mortgages for teachers?
While there are no mortgages exclusively labelled as “teacher mortgages,” many lenders offer professional mortgage products and schemes that benefit teachers.
Lenders like the Teachers Building Society provide products exclusively for teachers, offering more favourable terms, higher loan-to-value ratios, and a deep understanding of the teaching profession’s unique employment patterns.
Looking for a teacher mortgage? Get in touch
As an experienced mortgage broker, Goldmanread provides mortgage advice for teachers looking to buy their first home, move home or remortgage. We have access to specialist mortgages suitable for teachers that are not available from high-street lenders.
We can direct you to lenders most suited to your career stage and financial situation and manage the application process on your behalf to ensure the best chance of success.
Contact us today to get started.
