Can teachers get a mortgage on a fixed-term contract?
Teachers hold some of the most important positions in society, and they deserve a great deal of credit for all the hard work they put in.
It’s true that when it comes to certain financial arrangements, the stability, importance and long-term growth of a teaching career can provide certain worthwhile benefits. Mortgage brokers tend to look kindly on teachers, even those who have recently completed their qualifications and are temporarily classified as a Newly Qualified Teacher (NQT).
That said, despite teaching remaining a relatively secure and worthwhile career path, there are many employment categories involved with it. This means that not everyone is certain if they’re able to apply for a distinct mortgage.
Can teachers with fixed-term employment contracts get a mortgage?
Again, lenders tend to look quite favourably on teachers. For this reason, as long as there’s a solid employment history and there are several months left on your contract, the probability is that your contract will be renewed or that you’ll take a transfer. As teaching is a relatively understaffed position, work is often abundant.
Furthermore, if you can display evidence that you’ve negotiated higher salaries between jobs, then it may be you’re able to do this again. Mortgage lenders may prefer that you wait until a new contract is issued so you can be certain of your team. Mortgage brokers will also be able to help you define your best approach.
It is possible for me to get a fixed-term mortgage?
It’s important to make sure you know what you want going into it. A fixed-rate mortgage still needs to be at an interest rate you can realistically pay within your salary. This is usually quite comfortable for new teachers however, as lenders are aware of the stability of income provided by teaching salaries and can accommodate you as a result. They will often compete to provide you with appropriate interest terms.
It’s also important to note that fixed-term mortgages will place you in a contract, meaning it could cost thousands in early termination if you wish to get out of that fixed-term period. For full-time teachers on a permanent contract, however, this is less of a problem, because they tend to remain employed in one school for a good period of time before moving on.
In fact, some mortgage lenders will consider you to be in a fixed-term positon the moment you’re offered a permanent position at a school.
What if I’m newly qualified?
It’s possible to find an NQT mortgage, but given this is a temporary contract until you move into a permanent position, not all lenders will be comfortable offering you a fixed-rate mortgage just yet. They tend to ask for higher deposits, especially if your home is an apartment or a new build. In general, you can borrow up to four to five times your salary.
Can I gain a fixed-term contract as a supply teacher?
Teaching, in general, is an understaffed position and so many supply teachers nobly make up for staff absences and may enjoy a high volume of work placements and even relatively longform (yet still temporary) coverage contracts based on the needs of a given school or academy.
Yet because supply teaching is seen as a job in which work and hours are not guaranteed, it can be harder to achieve a mortgage, let alone a fixed-rate mortgage, if this is your full time position. That said, many mortgage brokers are willing to help you try.
How can I achieve the best terms?
With services like Airborne Mortgage Solutions, negotiating your best-possible mortgage is something we take seriously.
Why not contact us today? We can help with all teacher mortgages. We’d love to walk you through the process and help you find the right lender to fund your future home.
Try our contact page or call our friendly team at 08000 835 209. We look forward to speaking with you!