Did you know that in the US you can get impressive deals as a teacher? You can get up to a 50% discount on a home in the “Good Neighbor Next Door” scheme, and there are savings for “Heroes”, which is how they view teachers across the Atlantic. This is not a prompt for a mass exodus of teaching professionals to the US. However, it does raise the question of if there are any schemes in the UK that value teachers and the job security they enjoy.
Teacher Mortgages UK
There are special deals that a teacher can enjoy when getting a mortgage in the UK. Why? Teaching is generally thought to be a secure profession. You will likely bring in a regular guaranteed income over an extended period. In other words, you are a safe bet for a mortgage lender.
Oddly, you might think, there are also specialist lenders for people on temporary teaching contracts and supply teachers. The reason these lenders offer these teacher mortgage deals is because the need for an enhanced disclosure and barring service check (formally known as the Criminal Records Bureau (CRB) check), as this proves the general character of a teacher. Teachers are less likely to be involved in criminal activity.
Lenders also recognise there is a need for teachers to buy in areas where house prices are high and disproportionate to the salary earned. New teachers equally attract deals because the lender knows that they will gain a yearly increment to their salary, which means the top of the pay scale suggests they could take out a bigger loan than the average mortgage applicant.
Getting the special deals
This is one of those times when you need to visit a specialist in teacher financial advice. Although there are companies who offer special deals for teachers, it still might not be the best deal on offer. It is always best to seek out a comparison of the market. Despite these deals being practical and attractive, they could end up costing more because the company is lending you more than is generally standard and therefore taking more risk. When a mortgage lender feels they are taking more risk, they tend to increase interest costs.
It may feel tempting to take the option of special deals for teachers, as sometimes it feels like it is your only option for getting on the housing market. However, there are pitfalls. As with anything that represents such a significant investment, it is best to do your research to make sure it is best for your future security.
The content in this article was correct on 23rd March 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on teacher mortgages. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.
