Helping teachers buy their dream home

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Helping teachers buy their dream home

First-time buyers need to save an average of nearly £9,000 today for a 5% house deposit. That’s around 30% of the average income. It sounds like a hard task but as well as savings plans and forward planning there is extra help for teachers and education professionals – with specialist lenders, such as Teachers Building Society, helping teachers buy their dream home. 

How much deposit do you need?

The average house price in England and Wales is around £176,581, according to official data published in 2014. To buy a property worth that sum, you’d need to save at least £8,830 which would give you a minimum 5% deposit – or £17,700 for a 10% deposit. You also need to look carefully at the area where you hope to buy – more expensive areas will have a higher than average house price and will require a larger deposit. For example the average price of a house in London is £461,453 – requiring a 10% deposit of £46,000.

Preparation for getting on the housing ladder:

  • Start saving. Don’t delay – start putting money away for your deposit as soon as you can
  • Reduce your debts if you can.
  • Be aware of all possible mortgage costs not just your monthly payments e.g. solicitor fees, stamp duty, mortgage fees and early repayment charges (ERC)

Help for teachers

Teachers Building Society was founded by the NUT in 1966 to help teachers get on the property ladder and the mutual continues to be endorsed by the NUT today. Because it’s been working with teachers for  nearly 50 years, it has a wealth of knowledge on teacher pay scales, working contracts and mortgage needs.

Recently, the Teachers Building Society has been revamping its products range to ensure that it has products to cover a teacher‘s lifecycle. It has tailored products for teachers including a 95% Loan-to-Value (LTV) mortgage for first-time-buyers who are members of the National Union of Teachers (NUT) and a Teacher Later Years Mortgage aimed at teachers who are approaching retirement or already retired.

How Teachers Building Society helps teachers

Mortgages currently available from Teachers Building Society

 Teachers Building Society currently provides a range of specialise mortgage products for teachers, including:

  • Teachers Building Society (TBS) can offer mortgages to Newly Qualified Teachers (NQTs) on a one year contract one month before they start their first post
  • TBS offers Help to Buy and Shared Ownership schemes for teachers
  • All NUT members taking out a mortgage with TBS will receive £100 cashback
  • In-house underwriters do not use credit scoring and assess each case individually
  • TBS can arrange teacher mortgages for a range of education professionals which includes lecturers, teaching assistants and child therapists
  • If the application is joint, only one applicant needs to be a teacher to obtain a teacher mortgage
  • TBS has no automated phone system – you always go straight through to a team member

Teacher Help to Buy

The Help to Buy scheme provides an equity loan of up to 20% of the purchase price of a new-build property. This equity loan is funded by the Government, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. The Help to Buy Scheme is available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000. Teachers Building Society welcomes applications from teachers across England.

5% First Time Buyer Mortgage for NUT Members 

Teachers Building Society introduced a new 95% Loan-to-Value (LTV) mortgage available exclusively to NUT Members buying their first home – ideal for Newly Qualified Teachers it allows teachers to get on the property ladder with a small deposit.

For more information on mortgages available from Teachers Building Society visit www.teachersbs.co.uk

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Teachers Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registration number 156580

* Data from the National Office of Statistics and Land Registry House Price Index

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