Mortgages for teachers (2024)

Last updated on 2nd September 2023 by Martin Alexander

Working as a teacher can be very rewarding, and you may also benefit from certain perks. For instance, mortgages for teachers can be easier to obtain compared to other professions.

Mortgage lenders often favour those in certain professions, such as teaching. This is because teachers are likely to have fewer issues with finding employment. Furthermore, teaching should provide a steady income suitable for paying a mortgage.

While some lenders offer specific mortgages for teachers, other lenders are typically more flexible with applicants working in the education sector. It’s also important to note that tailored mortgages for teachers won’t necessarily have the best rates, and a regular mortgage may be a better option. As a result, it’s worth shopping around for a mortgage before applying.

Do teachers get better mortgage rates?

Mortgage rates for teachers can be cheaper when compared to regular mortgage rates. That said, each mortgage will vary, and there is no guarantee you’ll get a better rate simply because of your profession, but it is possible.

There are other advantages, such as lenders may consider lower deposits. Furthermore, lenders may be willing to consider variable income from teaching, especially if you’ve moved between schools or do contractual work.

It’s still important to approach a mortgage with caution, as salaries and roles vary in the education sector and can affect your application. As a result, some teachers may find mortgage approval easier than others. Furthermore, getting the right advice before applying can certainly boost your chances of a mortgage.

Are mortgages for teachers easier to get?

It can sometimes be easier to get a mortgage if you’re a teacher. The main reason is that lenders typically see teachers as low-risk applicants. This is because you have a career in education and will likely be in the profession long-term.

Lenders base their mortgage assessments largely on risk and affordability. This is why working in a certain profession can give lenders confidence in your application. For instance, professionals such as doctors, lawyers, and accountants often find it easier to get a mortgage than others.

Lenders recognise that becoming a teacher isn’t a decision you’ve perhaps taken lightly. As you’ve made a career choice, it’s much less likely that you’ll change career paths at a later date. This can give lenders confidence that you’ll be able to pay your mortgage as time goes on.

Working as a teacher can also allow you to progress through your career. Lenders also recognise that your income has the potential to increase over the years. Teaching is recognised as a secure profession as education is a key function in society. That being said, being a teacher doesn’t guarantee you a mortgage, as you’ll still need to meet your lender’s criteria.

How do I qualify for a mortgage as a teacher?

For lenders to consider your teaching role as a factor for your mortgage, you’ll need to meet the following criteria:

• Fully qualified teacher working in a school
• Lecturer working at a university or college
• Early career teachers (ECT)
• Teaching assistants with an NVQ level 3
• Nursery nurse with an NVQ level 3

You may also qualify with certain lenders if you’ve retired but were a teacher or are in a trainee teaching role.

What if I’m a newly qualified teacher?

If you’ve just started a new job, you’ll need to be careful when choosing the lender you apply with. This is because certain situations can make you appear high risk and cause your application to be declined.

There are also lenders who understand the education sector and may consider you if you’re newly qualified or don’t yet have a full-time contract. For instance, it’s common for newly qualified teachers to be first offered a one-year temporary contract. Some lenders are aware of this, but other lenders aren’t.

Can supply teachers get a mortgage?

If you’re a supply teacher on a temporary or zero-hour contract, applying with a suitable lender is crucial. This is because some lenders will require you to have a full-time role. A mortgage advisor can help you find lenders that you’re eligible for. Even if you’re struggling to get a mortgage as a teacher, there are specialist lenders that may consider you for a mortgage.

As a supply teacher, you may struggle to get a mortgage with a high-street lender. Nonetheless, it’s possible to qualify with a specialist lender. This also doesn’t mean to say you’ll be offered higher rates than usual. Lenders will assess your entire situation, such as the amount of your deposit, savings and any other income you earn.

Are there mortgage lenders for teachers?

Lenders like The Teacher’s Building Society will only lend to teachers. That said, it doesn’t necessarily mean you’ll get the best mortgage deal there. In fact, lenders that don’t offer specific mortgages for teachers may have better deals available.

Most lenders will vary in how they assess mortgage applications. While most lenders will see teachers as low-risk applicants, you’ll still need to meet the rest of your lender’s criteria. A lender that advertises mortgages for teachers doesn’t mean they’ll have the best deals available.

It’s unlikely that you’d be able to check each deal across hundreds of lenders, but that’s where our advisors can help. We’d compare deals from each lender you’re eligible with to ensure you’re getting the very best deal possible. This is perhaps the only way to guarantee you’re not overpaying with a different lender elsewhere.

How much can teachers borrow for a mortgage?

While most lenders base their affordability assessments on three to five times your annual income, there’s still much more to consider. For instance, lenders will also take your expenses into account, as well as any debt that you may have. Your credit history will also affect the amount you can borrow.

Some lenders will consider any overtime or bonuses that you receive, as well as any secondary income. Other lenders will simply use your teaching salary and won’t consider any other income. This can be very important, especially if you’re relying on income from a secondary source or get a lot of income from overtime and bonuses. Furthermore, if you have bad credit, you risk being declined by applying with an unsuitable lender.

Your deposit amount will also affect the mortgages you’re offered. For instance, a 5% deposit will limit you to certain lenders. A larger deposit, such as 10-20%, will give you more lenders and deals to choose from. As a result, you’ll be in a stronger position to secure a better mortgage deal for yourself.

Read more: How much can I borrow for a mortgage?

Specialist mortgage advice for teachers

Approaching the right lender has much more to do with whether you’re accepted for a mortgage. For instance, getting the most competitive deal and borrowing the amount you need is crucial in getting the most from your mortgage. Even slight differences in rates may not seem like a lot, but over time, you may be able to save thousands of pounds.

It helps to speak to an advisor who understands the education sector. This can often maximise your borrowing potential. Experienced advisors can also liaise with underwriters to clear up any problems with your application if needed. You can speak to our mortgage advisors once you’re ready to apply.

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