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Is there such a thing as a teacher mortgage?

The short answer is no. No lender sells a product called a teacher mortgage, there is no teacher discount, and anybody implying otherwise is selling something. What does exist is a genuine difference in how lenders read teaching income, and for supply teachers and newly qualified teachers that difference decides what you can borrow.

6 min read

Why the myth persists

Teaching is a stable, pensioned profession with predictable progression, so lenders like it. That gets repeated until it turns into a belief that there is a special product, which there is not.

There is also Teachers Building Society, a real lender that specialises in the profession and will consider situations high street lenders decline. Specialist is not the same as cheapest, though, and it should be compared against the wider market rather than assumed to be the answer.

Where lenders genuinely differ

Not on the rate. On how much of your income they are willing to recognise, which is where a teaching career gets treated inconsistently.

Supply and agency work is the awkward one. Some lenders treat supply teaching as self-employment and want two years of accounts. Others will average your last twelve months of payslips. The gap between those two approaches can be tens of thousands of pounds of borrowing on identical income.

Teaching and learning responsibility payments and other allowances are often treated as variable income. Some lenders count all of it, some half, some none. If a meaningful part of your pay sits there, the lender choice matters more than the rate does.

Term-time-only pay gets annualised differently too, so the figure on your payslip and the figure a lender uses are not always the same. Worth checking before you offer on a house rather than after.

If you are newly qualified

Several lenders will lend on a signed contract before you have started, sometimes up to three months ahead. If you are moving for a post and want to buy at the same time, you may not have to wait until you have been paid.

You will still need the usual evidence, but a contract and a start date can be enough to get an offer in place.

The pension, and what it is actually for

The Teachers' Pension does not increase what you can borrow on a normal repayment mortgage taken before retirement. It becomes relevant if you are borrowing into retirement.

Where it matters most is protection. Teachers' Pension death in service is a real benefit and it is routinely overlooked, so a good number of teachers are better covered through work than they realise. Anyone selling you life cover without asking about it first is not doing the job properly.

What we would do

Establish what kind of teaching income you actually have, because that decides everything else: permanent full-time, permanent part-time, newly qualified, supply through an agency, supply direct to schools, or a mix.

Then approach lenders that count it properly. A slightly higher rate from a lender that recognises your full income usually beats a cheaper one that does not lend you enough.

Teacher mortgages, answered

Is there a special mortgage rate for teachers?

No. There is no teacher discount and no teacher-only rate. What varies is how much of your income a lender will use, which affects how much you can borrow rather than what you pay for it.

Can I get a mortgage as a supply teacher?

Yes, though it takes more care. Some lenders will average twelve months of payslips; others treat supply work as self-employment and want two years of accounts. Which camp your lender falls into matters far more than the rate.

I am an NQT starting in September. Can I buy now?

Often yes. A number of lenders accept a signed contract starting within the next three months, so you may not need to wait until you have been paid.

Should I use Teachers Building Society?

Sometimes. They understand teaching income well and will consider cases others decline, but they are not automatically the cheapest and should be compared against the wider market.

Does my Teachers' Pension help me borrow more?

Not for a standard repayment mortgage taken before retirement. It matters if you are borrowing into retirement, and it is very relevant to how much life cover and income protection you actually need.

Is term-time-only pay a problem?

It should not be, but lenders annualise it differently, so the figure on your payslip and the figure a lender uses are not always the same.

The short versionThere is no teacher mortgage. There is a real difference in which lenders count supply, part-time and TLR income properly. Tell us how you are paid and we will tell you which ones read it most generously.
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