We’re helping teachers make sense of the mortgage application process. If you’re a teacher and looking to get a mortgage in the near future, you’re going to want to know this.
We’ve explained what a lender will consider on your application with specific information related to teachers.
Employment status and income
The lender will first look at your employment status. They will want to know if you have a permanent or temporary contract and whether you’re working full-time or part-time. It can be more difficult to get mortgage approval if you haven’t got a permanent or long-term contract – but it’s not impossible if you know where to look.
Your income is also an important consideration. This isn’t just about how much money you’ve been earning, but how your earnings are made up. Is your income from a base salary, or is it being boosted by temporary overtime payments, bonus payments and TLR payments?
Some lenders will accept these additional payments – including TLR payments - as part of your income, dependent on your contract type, whereas others will not. A specialist teacher mortgage adviser can help you cut through the noise and find the most suitable deals.
Down payment and affordability
Most lenders will require teachers to be able to pay for at least 20% of a residential property and borrow 80% or less. But there are some schemes that could help you if you haven’t got a 20% deposit, such as Help to Buy. Specialist mortgage advisers may be able to help teachers secure a mortgage with less than a 20% deposit with little or no penalties.
Mortgage affordability checks aren’t just concerned with your income, but also your expenses and existing debt. This includes all types of debt you might have, from loans and credit cards to your student loan repayments.
Credit score and history
Your credit history and credit score are an insight into how you’ve managed finances and debt repayments in the past. Your credit history could stop you from getting a mortgage no matter what profession you’re in.
Every mortgage lender will assess your file and score before approving a mortgage. Some people have a poor credit score without realising, which is why mortgage advisers will encourage teachers to safely check their score and help them improve it before applying.
Other factors affecting teachers
Some other lender considerations that could affect teachers are:
- How your income is affected by the Teacher Pension Scheme
- How teacher pay scales could affect your income in the near future
- Working in a public school vs a private school
- Working in a rural area vs working in an inner-city area
Get bespoke teacher mortgage advice, now!
Be a mortgage savvy teacher by seeking specialist teacher mortgage advice with Public Sector Mortgages. Our mortgage advisers specialise in helping teachers overcome issues regarding pay and can help find a more suitable mortgage deal.
