Teachers often struggle to get a mortgage at various times during their careers. There is a sweet spot in the middle of their career when they may find it a bit easier. Other than that, it can really be a challenge.

There are four main stages in teaching wherein it’s difficult to get a mortgage:

• Firstly, while you are training.
• When you are newly qualified.
• When you are a supply teacher.
• Finally, when you have retired.

In this article, we break down the different situations and how to resolve them. There are tons of options for teachers, and we will break down the different ones and explain not only why teachers struggle, but also how to solve the problem. Additionally, you should always consult a professional for mortgage advice.

First… While you train to be a teacher, you are not employed

This is a really common problem. While training, you receive a bursary that is usually paid monthly. Depending on your specialty, how much you get will vary.

Luckily, there are UK lenders that offer a trainee teacher mortgage. Albion Forest Mortgages regularly helps student-teachers get on the property ladder with this exact problem.

Bursary income can be used for a mortgage—you don’t even need an NQT contract. However, if you get that NQT contract, you may find it a lot easier! There are some lenders for bursary income, but it really opens up when you get that first Newly Qualified Teacher Contract.

Being newly qualified

Newly qualified teachers almost struggle more than students. Brokers such as Albion Forest Mortgages specialize in helping NQTs, so if this affects you, you can find them here.

Newly qualified teachers struggle with getting a mortgage due to two main factors:

• You are usually on a fixed-term contract.
• The drop-out rate for first year teachers is higher than in following years.

Basically, NQTs are a bigger risk to a lender. However, there are a handful of lenders that will take applications from NQTs.

Only 48% of newly qualified teachers stay in the job for more than 12 months, so you can understand their concerns.

Supply teaching

Being a supply teacher is probably the most difficult area to get a mortgage. You won’t have regular income, and you may not have been in the same school for very long.

There are tens of thousands of supply teachers in the UK. And some of them certainly aren’t struggling to get a mortgage. However, if they haven’t been doing supply teaching for very long, or if they haven’t even been a teacher very long, they may struggle.

Retired teachers

Retired teachers also can struggle to get a mortgage. Despite how solid pension income should be, lots of lenders won’t accept it.

It’s quite common for a teacher to retire earlier in life and draw their pension. In fact, the average retirement age is for teachers is 59. What if they want to move house and get a mortgage, or remortgage for home improvements?

They need a mortgage, and the likes of Teachers Building Society and later life lenders are there to help them. But it probably won’t be as straightforward as walking into their bank.

Teacher mortgages

We know teachers in other situations may also struggle. These are just the four main areas, and it’s worth noting there are specialist lenders and brokers out there specifically helping teachers get mortgages day in and day out.

Teachers have access to exclusive mortgages and lenders, which means they may be able to get rates that aren’t available to the open market. As they are considered professionals, they also have access to potentially higher income multiples. This, therefore, means they can borrow more.

A final note of caution: Lenders that specialize in teachers may not always offer you the best rate. You should always speak to a specialist advisor who will be able to give you good advice on which lender is best for your situation.