Our Guide to Supply Teacher Mortgages
Education is widely regarded as one of the most important aspects of our entire civilisation.
Supply teachers play an absolutely crucial role in assisting the state and some private institutions to provide a stable platform for students.
Yet in spite of occupying a critical and valued role in society, supply teachers can sometimes find it difficult or even impossible to obtain a mortgage.
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 biggest single difficulty in terms of obtaining supply teacher mortgages arises from the status of your occupation.
Typically, supply teachers are considered to be temporary workers. By definition, you won’t have a full-time contract of employment and both the duration of your teaching assignment and its potential options for extension, can be difficult to predict.
What this might mean for many seeking agency teacher mortgages is that 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 that of the self-employed.
A closely related inhibitor arises from the fact that 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 a 12 month period, 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 in order to quantify the risks involved in lending to the applicant. If you are unable to easily provide such, you may find that mortgage lenders are reluctant to go further.
Fortunately, we at NeedingAdvice may be able to assist you in finding a solution.
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. 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 take that into consideration as evidence of income;
- if you are able to 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 normally consist of remittance advices, taxation statements or bank account statements;
- if you are relatively new to this domain of employment with not a great deal to show by way of history, 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.
In terms of mortgages for supply teachers, you will typically need to be able to put forward a minimum of 5% deposit from your own financial resources.
Is there anything else that will help my application?
It is extremely important 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! Very large numbers of people have minor glitches on their credit histories and these are rarely considered to be showstoppers by potential lenders of supply teacher mortgages. If you have particularly serious problems on 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 take your partner’s income into consideration 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.
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.