The Definitive guide to getting an NQT Mortgage. Everything you need to know all in one place!
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Can You Get An NQT Mortgage?
Yes you can. As an NQT you usually get a 12-month initial contract. This can be a stumbling block for a lot of lenders.
You also have a low employment history as you were studying last year. However some lenders offer mortgages to NQTs. High street mortgage lenders like West Bromwich Building Society, Accord Mortgages, and Teachers Building Society.
As an NQT you usually have three big problems that lenders don’t like.
- You have a fixed term contract.
- You don’t have much employment history.
- Lots of NQTs drop out in their first year.
However, there are certainly options.
Do Teachers get better NQT mortgage rates?
No, not really. Due to the 12 months initial contract as standard lots of lenders aren’t on board with NQTs. However, most of the mortgage products that do fit for an NQT are from high street lenders.
Some lenders will even offer newly qualified teachers mortgages months before they start their NQT year.
Can probationary teachers get a mortgage?
Yes, most NQTs are on some form of probationary contract. However, you can still get a mortgage before your permanent role starts.
Being a contract worker can affect your chances of getting a mortgage. However, you still have options.
Do Teachers get special mortgages?
Teachers don’t get special mortgages as such. They do however have lenders that have criteria aimed at them. This means that some lenders understand your temporary contracts.
If you would like to discuss your mortgage options then please get in touch with an expert Mortgage broker at Teacher Mortgages who will be able to advise you.
Can You Get An NQT Mortgage or Newly Qualified Teacher Mortgages with Bad Credit?
Potentially. It will depend on how bad your credit issues are. I would definitely advise getting in touch.
Unfortunately the lenders that lend to a Newly qualified Teacher (NQT) don’t like really bad credit. However, they may allow for some minor issues.
If you think this could affect you, definitely get in touch to see if we can help.
Can you get newly qualified teacher mortgages if you haven’t started your job yet?
Absolutely. Some lenders will take your application as long as you have a job lined up for your NQT year. However, they may want you to pass your PGCE before completion. If you are wanting to use your NQT income you can find more out about getting an NQT mortgage before you start your academic year here.
Also, you can apply for a mortgage using your bursary income while you are training. This is quite common, as your bursary is often comparable to your NQT salary. We have a whole article on this here.
Can NQTS Get A Mortgage?
NQTs often struggle with getting a mortgage. But it’s not impossible. The number of lenders willing to help an NQT are small but we help NQTs get a mortgage on a daily basis.
As an NQT you have less job security than a fully fledged Teacher, and lenders know it. However, there are some that understand that a fixed term contract is normal for NQTs and your income will grow steadily over time. This works in your favour with certain lenders.
What Stops An NQT Getting A Mortgage?
The main things stopping an NQT getting a mortgage are:
- Lack of employment history
- Fixed term contract
- High drop out rate of Teachers in their first year.
The good news is that despite it being difficult to get a mortgage it is still very much possible. If you are needing an NQT Mortgage you will be limited on lenders but there are specialist lenders out there that will help.
Housing Schemes For An Nqt Mortgage
Getting an NQT Mortgage on your own can be hard. There are some Schemes available. Below we detail the most common ones.
Government Help To Buy Scheme
The Government Help To Buy Scheme has been around for a while and is probably the most well known scheme.
It is a 20% equity loan that allows you to put down a 5% deposit and get a 75% mortgage. This therefore means you usually get a better rate with the lender.
We have a whole article on this scheme here.
Shared Ownership can be good if you have a low income or low deposit.
The scheme basically lets you part rent and part own your home.
This can be quite good for NQTs as your income will grow steadily throughout your early career and you may be able to buy more shares later in the term of your mortgage.
How much can I borrow?
This is the big question. As a Teacher you can usually borrow up to five times your income. However, as an NQT it is more likely to be around 4.5 times your income.
If you would like to find out how much you can borrow get in touch and we’ll tell you. For Free! And it will usually only take around 15 minutes.
NQT Mortgage Calculator
We don’t have an NQT Mortgage Calculator. This is because an NQT Mortgage Calculator wouldn’t be very accurate. There is just too much information required to give you an accurate figure.
We can do it however, and if you want to know how much you can borrow you should definitely get in touch and we’ll tell you for free.
Early Careers Teacher (ECT) Mortgage
Sometimes your contract may state you are an Early careers Teacher or ECT. ECT Mortgages are largely the same as NQT Mortgages. Lenders view an ECT Mortgage in the same way.
If you are an Early Careers Teacher then you can get in touch with us in the same way as an NQT in order to discuss your mortgage options.