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Educator and teacher mortgages

Workers in the education sector could face mortgage challenges, but they could also qualify for a better deal!


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Over half a million full-time teachers are employed and doing a fantastic job in the UK. Sometimes their hard work doesn’t pay off in the mortgage market, as they can encounter several hurdles when trying to get the best mortgage for them.

At Public Sector Mortgages, we don’t think that’s right. We believe that educators deserve rewarding for their commitment to helping the next generations, preferably with lower rates and other perks. And this can be possible - thanks to dedicated education worker mortgage brokers and special teacher mortgages.

In this guide, we’ll explain what a teacher mortgage really is and the other things you need to know. You’ll learn:

  • Answers to the top school mortgage FAQs
  • Challenges facing educators looking for a mortgage
  • How to find a school mortgage
  • Where to find further information
  • The advantages of using a teacher mortgage broker

Looking for the cleverest mortgage advice?

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What mortgages are available to teachers?

Teachers are free to explore their mortgage options across the whole UK mortgage market. They’re usually very welcome applicants due to the security of teaching jobs in the UK. If you’re a teacher, you can search a variety of mortgage types across an array of lenders. A mortgage adviser can assist you in identifying the most suitable and beneficial one.

You may notice that some mortgage providers offer special benefits to teachers taking out one of their mortgages. When the mortgage offers benefits to teachers, this type of mortgage becomes known as a teacher mortgage or an education worker mortgage. Although there aren’t mortgages exclusively available to teachers, a teacher mortgage can provide benefits that people in other professions may not be able to access.

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Can a teacher get a mortgage discount?

Teachers and other types of workers in the education sector - including higher education - could get mortgage discounts. If you secure a mortgage with benefits for teachers, you may receive a discounted interest rate on the loan or some other form of benefit. The mortgage provider could give you cash back to help cover other costs associated with buying a home, such as paying for building inspections, paying the conveyancer or paying removalists. 

Who qualifies for a teacher mortgage discount?

Eligibility requirements for a teacher mortgage will differ between lenders. Most lenders will provide a reduced interest rate or benefit as long as one of the mortgage applicants works as a part-time or full-time teacher in a public school. Some lenders will also provide teacher mortgages to:

  1. Teachers in private schools
  2. Nursery staff
  3. University teaching staff, including mentors, tutors, lecturers and professors
  4. Non-teaching staff within an education provider, such as administrators or receptionists

Non-teaching staff in a school or university can find it most difficult to find an education worker mortgage. But don’t give up hope. A dedicated teacher mortgage broker may know about suitable lenders who offer benefits to all workers in the education sector.

How much could education workers borrow?

Teaching staff at a school, college or university could borrow up to 5 times their annual salary in a mortgage.

The exact amount you can borrow in any type of mortgage is determined by the lender. They work this out by using your income, essential expenses and your existing debt repayments to uncover what is affordable for you. The calculation includes stress tests to make sure you can still afford repayment if interest rates increased.

Speak to a mortgage adviser for more help understanding borrowing power and how you might increase it.

What mortgage schemes are available to teachers?

There are currently no schemes available exclusively for teachers to help them buy property. However, this could change in the future because there are schemes for other key workers, such as the Armed Forces Help to Buy Scheme.

Nevertheless, there are still standard mortgage schemes that can help you buy a property. These are:

  1. Shared Ownership
  2. Help to Buy
  3. Right to Buy

Mortgage issues facing teachers

Mortgage providers consider teachers and many other education sector staff as low-risk borrowers. Your actual lending risk will be calculated on an individual basis by looking at your credit history. But in general, teachers are low risk because the industry offers secure long-term employment that is continually in demand.

However, challenges can still crop up during the teacher mortgage process, namely:

Income complexity

You could face issues getting a mortgage if you’ve recently transitioned from a part-time or supply teacher role to a full-time teacher. The mortgage provider may consider your employment less stable than someone who has been working as a full-time teacher for many years. However, there are solutions to this problem if you know the teacher mortgage market well. Your broker should be able to source the mortgages that will be applicable to you in this situation.

Lack of payslips

Newly qualified teachers might wish to get a mortgage as soon as they land their first teaching job. This isn’t always easy because the lender will want several payslips to evidence a stable and ongoing income. However, other lenders who also offer school mortgages will be more flexible. Finding these flexible lenders offering school mortgages is made quicker with a broker who knows the current market.

PhD student mortgages

PhD students who are about to complete their confirmation may be seeking a mortgage with teacher mortgage benefits. However, they might not have lecturing contracts lined up and could still be working on temporary mentoring contracts for their university supervisor. This presents several challenges when searching for a mortgage, but again, these issues can still be overcome. Some mortgage lenders recognise the high-quality job prospects of PhD holders and could be more flexible.
 

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Education mortgage how-to guide

An educator mortgage broker can provide personalised and comprehensive advice on the process to find the best deal. We have summarised this process below, which can be especially informative for first-time buyers.

Improve your chances of a teacher mortgage

You may be able to improve your chances of getting a (better) teacher mortgage by following the advice of a mortgage adviser. Their advice might not just cover things like debt repayments and credit scores; it could also cover things related to your profession in the education sector.

How to find a suitable teacher mortgage

Just because a lender advertises a teacher mortgage doesn’t mean that you’re eligible for that mortgage. The fine print of the mortgage product could exclude certain types of teachers from receiving the benefit. For example, it may only be offered to full-time teachers.

Searching for teacher mortgages and then ensuring you qualify is a necessity, but it can be time-consuming. A broker will do this for you quickly because they already know the current mortgage market and the best places to look.

Applying for an education sector mortgage

It’s recommended to apply for a pre-approval mortgage first. This is when the mortgage company tells you how much they’re likely to lend you and on what terms. It will inform your property search because you will now have a strict budget. If you’re using a broker they will handle the application submission on your behalf.

Additional resources for teachers

You can learn more about some of the popular mortgage schemes available to UK residents by following the links below.

Shared Ownership
Help to Buy
Right to Buy

If you want more general information about buying property in the UK and getting a mortgage, we recommend the Money Helper website. This is a website backed by the UK Government to help people understand complex finance topics more easily.

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The advantages of using a teacher mortgage broker

You can certainly look for a teacher mortgage yourself without the help of a specialised broker. However, you may get a better mortgage result by enlisting the services of a teacher mortgage broker.

Some of the specific benefits are:

  1. You get an adviser who knows common issues facing educators, and more importantly, how to deal with them
  2. You get a broker who already knows the niche teacher mortgage market and where the most appealing products are. They could find deals you don’t, or they might find them much quicker
  3. Complex applications are made easier and less stressful

Get experienced teacher mortgage advice now!

Decided you want to use a specialist education mortgage broker? Look no further than Public Sector Mortgages, a mortgage broker provider that is dedicated to helping society’s key workers.

Our teacher mortgage advisers will assess your exact situation and preferences to find mortgage options that benefit you the most. With our advisers on side, you’ll make informed and smart decisions. Contact our team now! 

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