Mortgages For Teachers With Bad Credit
The definitive guide for Mortgages for Teachers with Bad Credit.
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Can you get mortgages for teachers with bad credit?
Absolutely! Getting mortgages for Teachers with bad credit can be challenging. However there are some lenders out there that will still accept you. Usually this depends on what the bad credit is, and how long ago it was.
Are there mortgages for Teachers with bad credit if I’m newly qualified?
Yes, Newly Qualified Teachers (NQTs) can still potentially get a mortgage with bad credit. Of course you are more limited on products and lenders as an NQT anyway, so bad credit will limit your options further. However it’s still very possible. Lenders will quite often even lend to you before you have started your first position.
As an NQT you likely have a fixed term contract, but you may want to move in that first year, or even just before if you are relocating. With this in mind Lenders may consider you before you have started that new position. This therefore means you can buy a property before starting that first year so not only will you have the excitement of a new job, you’ll have the excitement of a new home.
What leads to needing mortgages for teachers with bad credit?
Bad Credit can be caused by a number of factors. You may have a default, CCJ or IVA. Depending on the amount of the problem, how long ago it occurred, what it was for may mean you can possibly even look at a high street lender.
IVA’s and debt management plans are usually considered worse than a default or CCJ. It really depends on a lot of things so speak to a specialist mortgage advisor before you start considering your options.
What is a bad credit mortgage?
Whilst there is no such thing as a bad credit mortgage, there are however lenders and products more targeted at helping people with bad credit history. It’s always worth speaking to a specialist mortgage broker in these areas if you think you may have bad credit.
How to tell if you have bad credit
The first thing you should do if you think you may have bad credit is find out how bad it is. We recommend looking at a copy of your credit file as this will tell you how much your bad credit is, and importantly how long ago it was. At Albion Forest Mortgages we recommend Checkmyfile as it gives you a view of the 3 big credit referencing agencies.
What schemes are available for mortgages for Teachers with bad credit
You have a few options for Teacher mortgage schemes:
Help To Buy
The help to buy scheme has been around for a while and there is lots of information around what you can or can’t do etc. The main thing to note is that it is a 20% equity loan (40% in London) on an eligible New Build property. This means you only need a 5% deposit, and only a 75% mortgage, which should in theory give you better rate options.
This scheme has been around for decades. Essentially you part own and part rent your home, this is a great way to get on the property ladder, although you may find this scheme more of a challenge with Bad Credit. With the Shared Ownership scheme it may seem like you can’t borrow as much, but as you are only buying a part of the property, the total value may be more.
Right to Buy
This scheme is available to council tenants to buy their council property from the Local Authority. If you think this may apply to you, best to speak to your Local Authority and see if you are eligible.
First Homes is the newest scheme of the ones we’ve listed. It will be a 30% reduction in price of an eligible New Build property for Key Workers and First Time Buyers. As Teachers you should count as Key Workers. The main thing to note is that this scheme has not been released yet.
Where can I check my credit history?
We mentioned this above, but there are a few sites to choose from such as Experian or Equifax. We recommend Checkmyfile as it compares the top 3 credit referencing agencies for you.
Are there mortgages for Teachers with bad credit for supply Teachers?
Absolutely. Supply Teachers often struggle to get a mortgage anyway due to the nature of their work. However adding bad credit to this can really limit your options.
At Albion Forest Mortgages we specialise in getting mortgage deals for Teachers with bad credit. Speak to an advisor today for more information.