Many teachers, especially supply teachers and those on fixed contracts frequently have difficulty securing a mortgage. This is because mainstream lenders will sometimes consider their roles as non-permanent job positions. In order to secure a mortgage to buy a home you will need to use a lender who will consider each person’s individual circumstances.
Getting a mortgage as a teacher
Many teachers start new roles on 1-year contracts with a view to renewing after this time. In addition, NQT (Newly Qualified Teachers) are also typically on a 1-year contract. Without a permanent job role, many lenders will instantly reject teacher’s mortgage applications as they will consider them to be higher risk than people with permanent job roles.
Likewise, your income may not be consistent if you are a teacher. You might be required to work additional hours or run extra classes but these might not be the same from one month to the next.
Many conventional bank advisors often won’t offer the same mortgage deals to you if you have a contract-based job. This is because your employment status is likely to be seen by lenders as less secure than a permanent role.
Mortgage approval for teachers
Proving to mortgage lenders that you have a sustainable job is essential if you’re a teacher on a contract. You’re most likely to get mortgage approval if you choose a lender who will look at mortgage applications on a case-by-case basis.
Other ways that can improve your chances of getting mortgage approval include:
Saving for a larger deposit
The larger your deposit, the higher your chances are at getting mortgage approval. This is because you will be borrowing less money from your lender, reducing your potential risk.
Having a partner on the mortgage that has a job with a permanent contract can also help strengthen your mortgage application. This is because the responsibility of repaying the mortgage will be split between more than one person.
Your credit history
Having a good credit history can considerably help your mortgage application. Before applying you should check your credit score with a credit company such as Experian or Check My File. This will give you a good indication of what types of rates you are eligible for.