Mortgages for teachers: The complete guide
As a teacher, you’ve probably got enough on your plate with lesson planning, marking and endless admin. When buying a home, the last thing you need is more stress and paperwork! The good news is that you may be eligible for extra support when applying for a mortgage, thanks to a number of specialist schemes designed for teachers.
Whether you’re newly qualified or a department head, here’s everything you need to know about mortgages for teachers.
Do teachers get better mortgage rates?
Sometimes, yes. Because teaching is seen as a stable, skilled profession, lenders may look more favourably on your application. This can mean better interest rates compared to applicants in other roles, particularly those that are less secure.
And if you’re eligible for a key worker or professional mortgage, you might even be able to buy a home with a smaller deposit.
Do teachers get special mortgages?
Technically, teachers don’t get special mortgages. There’s no such thing as a ‘teacher mortgage’. The mortgages you’re eligible for are often offered to mortgage applicants from other professions too. There are however mortgage schemes aimed at professionals and key workers like teachers which offer benefits like enhanced borrowing or lower minimum deposit requirements.
The key difference between teachers and other applicants is that lenders will often consider your future income potential when assessing their affordability, rather than focusing solely on your current income. This can be particularly beneficial if you’re at the start of your career or you have the potential to progress to a better paid position in future.
For example, a newly qualified teacher on an initial salary may still be assessed with expected pay rises in mind. That can mean you borrow more than someone with the same income in a different field.
Can teachers borrow more money than other applicants?
Yes, in some cases teachers can borrow more for a mortgage than other borrowers. Most lenders cap borrowing at around 4.5x your salary, but teachers may qualify for enhanced schemes such as:
- Professional mortgages. Borrow up to 5.5x or even 6.5x your income.
- 5.5x income mortgages. Available if you meet certain criteria, such as fixing your mortgage for 5+ years.
Keep in mind that you’ll still need to pass the lender’s affordability checks, so make sure your credit record is in good shape and you’ve got all financial commitments under control before submitting your application.
To learn more about mortgage affordability, take a look at our guide: what is mortgage affordability and how do I increase it?
See what mortgage schemes you could apply for
Create a free Tembo plan today to find out not only how much you can borrow, but also what mortgage buying schemes you’re eligible for.
Can supply teachers get a mortgage?
Yes, but it can be trickier. Supply teachers on temporary, fixed-term or zero-hour contracts are sometimes seen as higher risk, so not all lenders will accept your application. The good news is that some lenders are more flexible. For example:
- A few accept just 6 months’ history of supply work.
- Others prefer at least 12 months, ideally with a record of consistent income.
This is where an expert broker can make a huge difference. If you apply for a mortgage through a bank directly and get rejected, this can leave a mark on your credit file, making it even harder to get approved for future mortgage applications. Thankfully, an experienced mortgage broker knows which banks lend to supply teachers and which don’t, so they can help you avoid rejection in the first place.
Learn more:What to do if your mortgage application is declined
Only qualifying professionals get enhanced borrowing
If you’re buying with someone else and they don’t have a job that lenders consider “professional”, lenders will multiply your individual incomes by different figures, typically 4 to 4.5 times their salary.
Early career teacher mortgage options
If you’re in your first few years of teaching, you may be eligible for an early career teacher (ECT) mortgage. Here, the lender will look at your estimated career progression rather than just today’s payslip.
That means if you’ve just started as a newly qualified teacher (NQT), you might still qualify for higher borrowing limits than someone in another job with the same salary.
You might not have as much employment history or as many payslips as a more experienced teacher, but by choosing a lender who understands how teaching careers work, you may be able to get a mortgage with the following documents:
- Your job offer letter or employment contract, even before you’ve started work.
- Your career track record if you’ve trained or worked in education before qualifying.
- Evidence of future pay increases built into your role.
Start your journey to homeownership
All you need to do is create a free Tembo plan with us. Our smart decisioning technology will then compare your eligibility to thousands of mortgage products and budget-boosting schemes to give you a personalised recommendation in an instant.
