Teachers Mortgage Scheme

Everything you need to know about a Teachers Mortgage Scheme.

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What Teachers Mortgage Scheme Options are there?

Whilst currently there are no specific Teachers Mortgage Scheme there are some options available to you. You do have specific products and lenders available to Teachers and Teaching Assistants. Primarily you have Teachers Building society which was set up with you in mind. However Teachers Building Society may not always be the best option for a Teacher, it’s worth considering multiple options.

Can Teachers Get Help With A Mortgage?

In some ways yes. For example we help Teachers get a mortgage and waive our Broker fees. This saves our clients hundreds of pounds. There are specialist lenders such as Teachers Building Society that offer specialist products for Teachers. This means that you may be able to make savings on your mortgage rates.. Be careful with this though, whilst Teachers Building society do offer specialist products for Teachers they may not be the best option for you personally.

Teachers Mortgage Scheme – What’s available?

First Homes

First homes will be the primary Teachers Mortgage scheme. The scheme is designed for First time buyers and Key Workers. The scheme will offer a minimum 30% discount on eligible New Build properties. It will have similar income caps as other schemes to make it accessible for those that need it.

You’ll have to get a mortgage on the property that you want to purchase. This is a big part of the scheme, if you can afford to buy the property outright, you don’t need the discount.

The maximum purchase price after the discount is £250,000 outside of London. This therefore means the maximum full price of the property outside London can be £357,142.

The most important thing to mention is as of writing this article this scheme hasn’t been released .

Help To Buy

The Government Help to buy scheme whilst slightly older offers similar benefits of getting on the property ladder. Offering a 20% equity loan (40% in London) means that you only need a 5% deposit. Therefore you only need a 75% mortgage. This usually results in a better rate of mortgage interest.

Shared Ownership

Shared Ownership is probably the oldest of the available schemes. It allows you to part buy and part rent your home. This in turn means you therefore have a smaller mortgage and can in turn a smaller deposit is needed. This scheme is perfect for those with low income or smaller deposits that want to get on the property ladder.

Right To Buy

This scheme is only available to eligible council tenants. Essentially the Local authority sells you your home at a discount. This is a great way to get on the property ladder with little or no deposit.

How Can I apply for a Government Teachers Mortgage Scheme?

You apply for the Right to buy through your Local Authority. If you wanted to use the Help To Buy or Shared Ownership Teachers Mortgage scheme you should probably start with the Help To Buy Website.

Whilst you can do all the work yourself, quite often a Mortgage advisor can do it for you. If like us they don’t charge Key Workers Broker fees then there isn’t really a reason not to.

Can I Use The Teachers Mortgage Scheme With Bad Credit?

As we went through above there are a few different schemes available. Due to lenders limiting themselves on which Teachers Mortgage scheme they are part of you may struggle with bad credit. However whilst bad credit won’t affect getting on the scheme it will affect getting a mortgage. Some lenders are better with defaults and some better with CCJ’s etc. This therefore means by being limited on what lender you can use you may end up being limited on which scheme you can use.

If you have Bad credit speak to your Bank or a specialist mortgage advisor to go through your options before applying. You may be better with one scheme over another.

Is There A Newly Qualified Teachers Mortgage Scheme?

Newly Qualified Teachers in theory have the same schemes available as an experienced Teacher. The only hurdle however will be the lenders that you have access to. As a Newly Qualified Teacher you may only have access to a few lenders due to your short term contract. This may mean that you do not have access to the full range of schemes as those lenders may not opt in to the schemes you want to use.

Can Supply Teachers Use The Teachers Mortgages Scheme?

Supply Teachers generally have access to the same Teachers Mortgages scheme options as a Full time Teacher. However you may find that you are limited on which Lenders will consider your application due to the nature of your income. As only certain lenders will generally consider applications on the help to buy or Shared Ownership scheme you may have to look at a specialist lender. Alternatively you may have to use a different scheme to the one you had planned. You can either speak to your Bank, there’s always a chance they will fit. Alternatively speak to a Specialist Mortgage Advisor that can go through your options.

If I’m Retired Can I Use The Teachers Mortgage Scheme?

Most of the Teachers Mortgage Scheme options available are designed for First Time Buyers. However mortgage schemes are usually accessible to those that need them. A retired first time buyer should fit on most Teacher mortgage schemes. The only hurdle you will have however is how a lender assesses your income. You may find that the lenders that are most favourable for your income may not participate in the Teachers Mortgage Scheme you wish to use.

Got a question around mortgage schemes that we haven’t answered? Try our main Teachers page or one of the related pages for Key Workers. Still no luck? Get in touch!

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