Trainee Teacher Mortgage
The definitive guide to getting a Trainee Teacher Mortgage.
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Can you apply for a mortgage as a trainee teacher?
You can absolutely apply for a mortgage as a Trainee Teacher or Teaching Assistant. You may find it more of a challenge as your income will likely be a bursary while you’re training. However getting a trainee teacher mortgage doesn’t have to be too difficult, speaking to a specialist mortgage advisor will increase your chances of your application being successful.
The most important thing is to make sure your application is packaged correctly so that the lender knows how your income is going to come in. The lender will probably also want to know what your plan is when you get your qualification. There are not many lenders that will take Bursary income, but there are some.
What type of Mortgage is there for teacher trainees?
Usually you will have access to the same types of mortgages as a Teacher that has completed their training. However your options will be more limited whilst you are a student. You generally get a few different types of mortgages. Here’s a few common ones:
Fixed rate mortgages
Fixed rate mortgages are probably the most common type of mortgage. They are set at a fixed rate of interest and therefore a fixed monthly payment, for a set amount of time. They often have something called an Early Repayment Charge (ERC). This means if you try and redeem the mortgage during the fixed rate period, you have to pay a penalty.
Tracker rate mortgages
Tracker rate mortgages tend to track the Bank of England Base rate and go up and down as that changes. Therefore this means your monthly payments go up and down as well. Whilst this may not sound ideal Tracker rate mortgages often don’t have an ERC so usually give more flexibility.
Discount rate mortgages
Discount mortgages tend to offer a discount on the lenders variable rate. This therefore means if the lender adjusts their variable rate it can go up and down.
How do I apply for Mortgages for trainee teachers?
The same way you would apply for a mortgage normally. You can either speak to a specialist mortgage advisor to discuss your options. Or speak to your Bank. The problem with speaking to your bank is you may not fit their criteria, or they may not take your Bursary income. We’d recommend speaking to an Expert, like us! And to top it off, we waive our Broker fee for Key Workers, so this includes you!
Can I get a Trainee Teacher mortgage with Bad Credit?
Possibly. It really depends on how long ago it was, what it was for and how much it was. When it comes to Bad Credit your first step should be to check your credit report. For this we recommend Checkmyfile as it will show you the 3 main credit reference agencies all at once. Once you’ve got your report you can speak to your Bank or a mortgage advisor to see what your options are.
What is a trainee teacher mortgage?
Whilst a Trainee teacher mortgage is not a specific product just for Trainee teachers, there are products and lenders that will be a better fit. An example of this is Barclays, as they can consider Bursary income. However they may not be the best fit, and they may not be the best option for you.
Is a trainee teacher mortgage the right choice for you?
If you are a trainee or student teacher and want to get a mortgage then it might be best to get a trainee teacher mortgage. However you may be better off renting and buying a property near to the School you end up teaching at when you qualify. Ultimately this will be down to your personal situation. You might be intending to commute once you qualify and already have a life in the area you want to buy in.
What if you have student loan debt?
Student loans do get taken into account when you are applying for a mortgage. However lots of people have Student loans, and whilst it will be taken into consideration it won’t stop you getting a mortgage. You’re best off checking the affordability calculator with the lender you intend to use, or if you’re using an advisor they will do this for you.
What income can I use for a Trainee Teacher Mortgage?
If you are receiving a Bursary income you can use this to calculate your mortgage. However lenders will usually be interested in what your job plans are for once you are qualified. If you are soon to start your new job as a Newly Qualified Teacher you can apply using your income for the new job when you start.
Trainee Teacher Mortgage Schemes
There’s a few Teacher Mortgage schemes available:
Right to Buy
If you are in an eligible council property you may be able to purchase it off your Local Authority. This scheme allows you to buy your council home at a discounted rate for a simple step on to the property ladder.
Shared Ownership is a brilliant scheme for getting on the property ladder. It allows you to part buy and part rent your home. As a trainee teacher you may find it difficult to get on the scheme as finding a lender that takes your bursary income and fits the scheme may be a challenge.
The First homes scheme will be a good way for trainee teachers to get on the property ladder as it allows Key Workers and First Time Buyers to get a minimum 30% discount on eligible new build properties. Unfortunately the scheme hasn’t been released yet and we don’t know whether Trainee teachers will be eligible or not.
Help to Buy
The help to buy scheme is a 20% equity loan on the purchase of an eligible new build property. This allows you to put down a 5% deposit and get a 75% mortgage. This therefore means you usually get a better rate.
I’ve previously been a supply teacher and now I’m training, can I get a Trainee Teacher Mortgage?
This is perfectly okay to do. As a trainee teacher you can get a mortgage based on your bursary income. The fact that you have been a supply Teacher in the past may work in your favour as you have your supply Teacher role to fall back on if you don’t have a job lined up for immediately after you qualify.