Mortgages for teachers

Most lenders allow you to borrow 4 or 4.5 times your income as a mortgage. However, professionals, including teachers, can find lenders offering multiples of 5 or 5.5 your annual salary.

Some lenders can boost their maximum loan-to-value (LTV) to 95% if you’re a teacher, so you would only need a 5% deposit saved up.

You might be able to find exclusive interest rates, longer mortgage terms, lower fees or cashback if you’re a professional.

The lenders specialising in mortgages for teachers understand how your job works. They are better placed to accurately assess your income and can be flexible to work around your busy schedule.

Use a mortgage calculator to help you understand what you can afford. You should also look to get a Mortgage in Principle, which you’ll need before you can start making offers.

You’ll need to supply several documents as part of the application process. These include bank statements, utility bills and payslips. You'll also need to provide evidence of your job role to prove your eligibility for a professional mortgage.

It’s important to check your credit report before you apply. All lenders will run a check on your credit record, and if you have a poor score, you may not be accepted, so it’s worth making sure your score is good enough.

The best way to find mortgage lenders that specialise in mortgages for teachers is to use a broker. They can search the market for you and help you find a mortgage deal that is right for your personal and professional situation.

Getting a mortgage as an NQT is possible, but it can be more difficult. If you haven’t been working for long, it is harder for lenders to make a judgment on your income and the stability of your job.

For this reason, some lenders won’t offer you a mortgage unless you’ve been working for a year or more. However, by using a broker, you can find specialist lenders who understand the teaching profession and are willing to lend to NQTs.

You may work on a temporary or zero-hours contract if you're a supply teacher. This can make getting a mortgage difficult, as many lenders require you to have a full-time role. 

However, lenders that specialise in mortgages for teachers may be willing to lend to you as a supply teacher. It will help if you have worked as a supply teacher for several years, as this gives them confidence that you will earn enough to afford your mortgage payments.

Since the ‘key workers’ scheme was removed in 2019, there are no longer any specific schemes designed for teachers and other public sector workers. However, you can access other mortgage schemes that are available to first-time buyers, including: 

• Shared ownership

• Mortgage guarantee scheme

• Lifetime ISA

• Right to Buy and Right to Acquire

The exact amount you’ll be able to borrow will depend on the lender, your annual income and affordability.

Most lenders offer loans worth 4 or 4.5 times your income. However, as a teacher, you could find a lender willing to offer up to 6 times your income. They see you as a low-risk applicant with a reliable income and good long-term career prospects. 

For example, if you earn £30,000, you might be able to borrow up to £135,000 with a standard high-street lender. However, a lender that specialises in mortgages for professionals could offer a loan of up to £180,000. 

It’s important to remember that your affordability and credit score will also influence how much you can borrow. For example, if you have several debts, this can reduce how much you can borrow.

It is still possible to get a mortgage if you have poor credit; however, it will mean you’re unlikely to get the best possible deal.

Most lenders are wary of lending to applicants with a poor credit record because they are more likely to struggle to keep up with their repayments. To reduce the risk to them, lenders may offer a mortgage at a higher rate or on less favourable terms if you have bad credit.

However, as a teacher, some lenders can be more flexible because your profession means you are seen as a more reliable borrower. However, some benefits, like a larger loan or higher LTV, might not be available if you have a poor credit record.

Getting a new mortgage as a retired teacher could be possible if you can prove your pension can cover your repayments. 

The Teacher’s Pension Scheme is a defined benefit scheme, which means you’ll receive a reliable income into retirement. 

This can help you prove your affordability to lenders, but you will still need to meet all other criteria. The biggest stumbling block could be finding a lender willing to lend to you as an older borrower. 

Many banks won’t offer mortgages to you if you’re over a certain age, for example, 70 years old. Using a broker like Better.co.uk can help, as our advisors can search the market for lenders willing to lend to older borrowers.