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Do Teachers get special mortgages?
Teachers do not get specific or special mortgages deals but there are specialist mortgage lenders out there who will tailor their products towards teachers. Being a teacher is a well-respected form of employment and lenders will be attracted to this, however specialist lenders will understand more about your commitments.
If you are a newly qualified teacher then you may find it more difficult to find a lender willing to let you secure a mortgage offer due to the lack of employment behind you. If you have temporary contracts you will need to be prepared to provide them. There are lenders out there though, as a supply teacher your work isn’t always guaranteed but you will too still have options when it comes to mortgage products.
First Time Buyer, Remortgaging and Buy to Let Teacher Mortgages
As already explained there are no specific mortgages out there for teachers, there are different schemes to help when it comes to that next step on the property ladder. Whether you are a first time buyer, mortgaging or looking for a buy to let there are options for you to help you out.
Teacher First Time Buyer Mortgage
As a first time buyer mortgages can be daunting enough and you may be wondering if you can get any help because of your occupation. There are specialist lenders out there who will offer certain features of flexibility and will understand more when it comes to the fact you are a teacher. You may need to seek the help of a Mortgage Broker in order to find the right specialist lender for you.
Help to Buy
If you are buying for the first time you will be entitled to the Help to Buy scheme which is where you can provide 5% of the property’s value as a deposit then the Government will loan you another 20% for a deposit.
If you cannot afford to buy a house outright you can do something called ‘shared ownership’ this is when you buy up to 75% of the property and then pay rent on the percentage you do not own.
Remortgaging for Teachers
When you come to the end of a mortgage term then you will need to remortgage either with your existing lender or a new one. You will need to decide whether to stay with your existing lender or search for a new one.
It is always worth speaking to a mortgage adviser to discuss your options a month or two before it is time for you to remortgage. You may also want to remortgage for other reasons and leave your current mortgage early. This can incur early exit charges so it is worth speaking to your lender or checking criteria.
Buy to Let Mortgages for Teachers
Investing in property and Buying to Let mortgages is a big commitment and you must make sure that you are ready to cover the cost of when you have no rental income on that property. There is often a minimum income requirement of £25,000 a year to access Buy to Let mortgages, however, this is not always the case some lenders have no minimum income stipulation.
You need to ensure you keep an eye on your credit score and do everything you can to have the cleanest credit history you can. You can do this by ensuring you have kept yourself up to date on the Electoral Register and closing any unused cards or accounts.
Mortgage Payment Protection
There are three main types of mortgage payment protection, income protection, mortgage payment insurance and critical illness cover.
It can be worth taking out mortgage protection schemes so that in the event you cannot cover the repayments on your mortgage you have insurance there to make sure you do not fall behind. If you miss mortgage repayments your home may be repossessed.
You can decide whether you have a scheme for short term or right up until you retire. There are different features offered by different lenders but the protection is in place in case you fall sick or are made redundant.
Mortgage Payment Protection Insurance (MPPI)
This will cover your mortgage loan repayments over a set period which can be up to two years to cover periods for when you are ill, have lost your job or have been in an accident which leaves you unable to work.
Critical Illness Cover pays out an amount if you develop one of the covered critical illnesses. It is usually for cancer patients or those who have suffered from heart attacks, but every policy is different and there are specific ones out there too.
You do not need to have mortgage payment protection, however it can be useful to have it in place, especially as a teacher. If you have enough expendable cash at each month then it is worth taking out the cover in the event that you cannot work.
How can a Mortgage Broker help me as a Teacher?
Mortgage Brokers understand you have a busy schedule and we can tailor our time to meet the needs of yours. We will listen to your circumstances and discuss the most beneficial options no matter whether you are a supply teacher, newly qualified, contracted or fully employed.
We are registered with the Financial Conduct Authority meaning that we are qualified to be able to give the mortgage advice that you seek. We are Whole of Market Mortgage Advisers and have access to products not available on the high street and exclusive deals through our Network Quilter Financial Planning Ltd.
We can help guide you to the right options for you as well as helping you gather all of the information that you will need alongside your mortgage application. We will not usually incur a fee until a mortgage application has been accepted too.
Buy to Let mortgages are not regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on your mortgage.