We had a meeting with a lender recently. This is something we were aware of previously and have experience of customers in this situation. But I thought it would make for a good informative post for you newly qualified teachers out there…
We will look at whether you can get a mortgage, the costs and the rules surrounding getting a mortgage as a newly qualified or unqualified teacher.
Can you get a mortgage if you have not yet started your teaching job?
Are you listening at the back? (Do you like what we did there?) In a word, yes.
Because teaching is a highly regarded profession in that it takes many years to become qualified, it is a job that is in short supply and with a generally good wage progression (dont say it, dont say… and good holidays!) there are mortgage lenders out there who are open to just seeing a contract of employment.
What are the rules?
There is only one, the start date of the contract must be dated within 3 months of the mortgage application going in.
The general consensus here is that it will take 2-3 months for you to complete anyway so by the time you have completed you will likely have started the job. But there is no requirement that the job must have been started. That being said, if you do complete quickly, it would be wise to ensure you have sufficient money to pay the mortgage until you do start to receive a wage.
What about unqualified teachers?
The same principle is applied, it still follows a career progression plan. There is a shortage of teachers, it is still a highly secure profession. You can still use a contract of employment as evidence of income even if you have not yet started.
How much can you get?
There are 2 answers to this question…
Mainstream mortgages, you can get around 4.5-5x your income. This makes a few assumptions in terms of debt, children, length of mortgage and so on. With a starting salary of around £39,000 that would equate to round £175,000 to £195,000 – plus your deposit.
Specialist lenders, you can potentially go up to around 6x your income however the requirements here would be greater. Also the rates would be around 1% higher than mainstream mortgage lender. That would add a minimum of £160 to your monthly repayments on a like for like basis but likely more as the mortgage would be larger.
Summary
As a teacher, qualified or unqualified so long as you have a contract of employment, it is possible to get a mortgage and at normal rates. You may not have the pick of lenders, but it certainly will not mean it has to cost you more.
It can get a little complex as we get into the details. The idea of this post is just to give you a brief overview and to let you know that it can be done. But I think it is generally worth having a conversation as the devil can be in the detail with these things.
If you would like to discuss this in more detail we are always happy to have a chat and see what we can do. Please do get in touch.