Mortgage Options for Supply Teachers: Overcome Challenges with Expert Guidance
Understanding your mortgage options as a supply teacher can feel daunting due to the often irregular income and lack of a permanent contract.
However, this doesn’t mean you’re always excluded from securing a mortgage or achieving your dream of homeownership.
With the right advice and guidance, supply teachers may be able to find competitive mortgage deals that suit their needs.
At Kerr & Watson, we specialise in helping professionals like you secure the best mortgage terms, regardless of employment type.
We can help you to understand how supply teachers can obtain a mortgage, the challenges you might face, and how we can help you overcome them.
Can a Supply Teacher Get a Mortgage?
The straightforward answer is yes, supply teachers can get a mortgage. However, there are a few additional factors that lenders consider when assessing your application compared to those in permanent roles.
Lenders often view supply teachers as being on a zero-hours contract, which can make proving a consistent income a bit more challenging. But for the right situation, securing a mortgage is entirely possible.
Understanding the Challenges
Supply teachers typically face a few specific challenges when applying for a mortgage:
Irregular Income
One of the main hurdles is proving a consistent income, especially if your teaching assignments vary in frequency and duration. Lenders usually prefer stability and may require more evidence of your earning capacity over time.
Employment Status
Supply teachers are often classified similarly to self-employed individuals or contractors, which can make the mortgage application process slightly more complex. Lenders will want to understand the nature of your employment, including how long you have been working as a supply teacher, consistency of your work and who pays your tax (if you are working on a self-employed basis).
Zero-Hours Contracts
Many supply teachers work on zero-hours contracts, meaning they do not have guaranteed hours. This can be a red flag for some lenders who may perceive this as a riskier proposition compared to a permanent contract. As a result, they may need to see longevity in the role. For example, a full year.
Find out Your Options
How Lenders Assess Supply Teacher Mortgages
Lenders assess supply teachers differently than those in permanent roles. They focus on several key factors:
Length of Employment
Lenders typically want to see that you have been working as a supply teacher for at least 6 months to a year. The longer you have been in this role, the better, as it demonstrates a more consistent income pattern and allows them to best calculate your income over a certain time.
Income Proof
You will need to provide evidence of your income, which may include payslips, bank statements, and possibly your tax returns if you are considered self-employed. Most lenders will require at least 6 months of payslips, but having 12 months of consistent earnings can strengthen your application. Different lenders all have their own criteria so speaking with a mortgage broker is beneficial.
Type of Contract
Whether you are employed through an agency, directly by a school, or self-employed, lenders will consider how you are contracted. Permanent or long-term contracts can make the process smoother, but even short-term or rolling contracts can be acceptable with the right lender, assuming you fit the rest of the lender’s criteria.
Tips to Improve Your Chances of Getting a Mortgage
If you’re a supply teacher looking to get a mortgage, there are several steps you can take to improve your chances:
Maintain Consistent Work
Lenders prefer to see a steady income, so aim to work regularly and document your earnings carefully. The more consistent your work, the easier it will be to prove your income to lenders.
Save a Larger Deposit
While it is possible to secure a mortgage with a 5% deposit, having a larger deposit can increase your chances of approval and may also secure you a better interest rate. A larger deposit reduces the lender’s risk, opening up more options. We can find out about your current situation to advise whether there are options available to you now, taking into account your current deposit level..
Work with a Mortgage Broker
The mortgage market can be complex, so it’s beneficial to work with a mortgage broker who understands your unique circumstances. At Kerr & Watson, we have extensive experience helping all people in all occupations secure mortgages, even in challenging situations.
What Documents Will You Need?
When applying for a mortgage, you will need to provide several documents to support your application. These depend on the lender and your situation, but they typically include:
- Proof of Identity: A valid passport or driver’s licence.
- Proof of Address: Utility bills or bank statements showing your current address.
- Income Proof: 6 to 12 months of payslips, P60 forms, or self-assessment tax returns (SA302s) if self-employed.
- Bank Statements: Usually, the last 3 months’ worth of bank statements to show your income and outgoings.
- Credit Report: A recent credit report to demonstrate your creditworthiness. You can find out your credit history by visiting Check My File.
Conclusion
Getting a mortgage as a supply teacher may present some challenges, but with the right preparation and expert guidance, it can be entirely achievable.
At Kerr & Watson, we are committed to helping you secure the best possible deal, tailored to your unique circumstances.
Contact Kerr & Watson today to learn more about how we can help you secure a mortgage as a supply teacher.
