We all know that Education is widely regarded as one of the most critical aspects of our entire civilisation. Also, the education sector is nothing without our qualified teachers. Supply teachers play a crucial role in assisting the state and some private institutions in providing a stable platform for students. Yet, despite occupying a critical and valued role in society, supply teachers can sometimes find it difficult or even impossible to obtain a mortgage. Mortgages for teachers come up with different challenges, which we will discuss in this mortgage guide ahead. Some mainstream lenders have mortgages for teachers schemes such as ‘first homes’ aimed at Key Workers or Professionals. In what follows, we will examine mortgages for supply teachers, the origin of the problem and, more importantly, potential solutions.
I am a supply teacher; why is it difficult to get a mortgage?
The most significant single difficulty in obtaining supply teacher mortgages arises from the status of your occupation. As a newly qualified teacher seeking a mortgage, you may have experienced a refusal from a street lender because of the no employment history.
Typically, supply teachers are considered to be temporary workers. By definition, you won’t have a full-time employment contract, and both the duration of your teaching assignment and its potential options for an extension can be challenging to predict by any supply teacher mortgage specialist.
This might mean that for many seeking agency teacher mortgages, conventional mortgage lenders will face the considerable problem of not being sure about your income over the period ahead. In a sense, temporary employment status can be more of a problem in finding mortgages than self-employed.
A closely related inhibitor arises because agency workers typically do not receive income during holiday periods. Given the lengthy and extended nature of school holidays in the UK, that means that for much of your financial history over 12 months, you will appear to have no verifiable income from the viewpoint of a potential mortgage lender.
Most conventional mortgage providers need to see evidence of consistent and relatively secure income to quantify the risks involved in lending to the applicant. If you are unable to provide such evidence easily, you may find that mortgage lenders are reluctant to go further.
Fortunately, we at NeedingAdvice.co.uk Ltd may be able to assist you in finding a solution. It is always better to connect with a specialist mortgage broker who can help you to connect with a suitable lender with the most affordable mortgage rates. In addition, we can help you with a range of mortgage schemes and get you onto the property ladder.
What do I need to qualify for an agency teacher mortgage?
The good news is that not all mortgage lenders necessarily take a very fixed view of agency teaching and the associated requirements for supply teacher mortgages.
Some lenders understand the slightly unpredictable nature of your income and contract position. As a result, they may be much more flexible in accepting short-term contract commitments in certain situations:
- Even if your contract is temporary, if it has a significant period left to run going forward into the future, some specialist lenders may consider that as evidence of income;
- If you can provide evidence of income (even if there are gaps due to holidays) over the preceding 12 to 24 months, so much the better. That evidence would typically consist of remittance advice, taxation statements or bank account statements;
- Suppose you are relatively new to this domain of employment with not a great deal to show by way of history. In that case, some providers of agency teacher mortgages may assess your application objectively based on common sense rather than standard computer-controlled assessment algorithms.
How much deposit will I need for a supply teacher mortgage?
As is the case with virtually any mortgage applicant, irrespective of their employment position, the larger the deposit you offer, the more likely it is that you will get a fast and positive outcome to your application. The larger deposit, such as 10-15%, could give access to previously unavailable lenders. Also, if you can’t afford a sizeable deposit mortgage as a supply teacher, you could put forward a minimum of 5% deposit from your financial resources.
Is there anything else that will help my mortgage application?
It is essential to recognise that there are many factors used by potential mortgage providers when they are considering agency teacher mortgages. Evidence of your income over time and your contract going forward are only two of them.
Other factors that might be pertinent will typically include:
- the amount you are looking to borrow will need to be seen to be affordable – not just in terms of your salary but also in terms of your other current monthly outgoings. This is part of the duty of care all licensed mortgage providers must demonstrate through assessing affordability criteria. That is a statutory requirement designed to protect your interests;
- the property you are considering will need to be seen to be sensibly valued when reviewed against an object valuation of it against market norms;
- you will be expected to have an acceptable credit history score. Please note – this does not mean that you need to have an impeccable credit history record! Many people have minor glitches on their credit histories, and these are rarely considered showstoppers by potential lenders of supply teacher mortgages. If you have particularly serious problems with your history, it may increase the interest rate you will be expected to pay, and of course, any mortgage lender will reserve the right to decline an application if your history is particularly bad;
- it may be possible to consider your partner’s income in situations where they will be a joint applicant and joint owner of the property concerned;
- typically, your mortgage application must relate to a property in the UK, and you will need to meet other criteria relating to proof of identity through things such as passports, driving licences and most importantly, your presence on the electoral roll.
Can I get a supply teacher mortgage with bad credit?
Yes, you can get a supply teacher loan even if you have an adverse credit score. Whatever is your situation, at needingadvice.co.uk ltd, we deal with all kinds of bad credit mortgages by giving the most suitable financial advice. We are also the only specialist broker with the most affordable broker fees, which will fulfil all the requirements. You only need to provide us with your adverse credit details information with complete honesty, and our experienced mortgage broker could help you grab the appropriate mortgage deal.
Next Steps – Supply teacher mortgages
We offer our assurance that we fully understand the frustration many supply teachers feel when they experience difficulty in securing a mortgage. There is, though, no need to become demoralised, and we may well be able to assist you in finding a way forward. We invite you to contact us at your earliest opportunity for an entirely confidential and non-committal discussion of your needs.