Teachers BS ups maximum mortgage limit and starts offering 7x income mortgages for Teachers
Quick Summary
Teachers Building Society has gone wild and started offering 7 times salary mortgages to teachers. The new offer applies to teachers and others working in the education sector, including teaching assistants, nursery workers, headteachers, supply and contract teachers and lecturers. For those purchasing with a partner, only one applicant needs to work in the education sector to be eligible.
Teachers Building Society has increased the amount it will lend teachers and education professionals up to 7 times their income. The society’s previous maximum was up to 5 times income, unless they earned over £100,000.
The new offer applies to teachers and others working in the education sector, including teaching assistants, nursery workers, headteachers, supply and contract teachers and lecturers. For those purchasing with a partner, only one applicant needs to work in the education sector to be eligible.
The increase means a single teacher on a salary of £33,000 can now borrow up to £196,400, a 19% increase over the previous maximum of £165,000 subject to criteria and full affordability assessment. Meanwhile, joint applicants, each earning £33,000, can now borrow up to £196,400, an additional £82,200, equivalent to a 25% increase on the previous maximum of £330,000 subject to criteria and full affordability assessment.
Teachers Building Society chief executive Gavin Opperman says: “As a Society we recognised that we needed to do more to make home ownership a reality for those working in education and we’ve made this lending policy change to help make it possible for even more teachers to take their first steps onto the property ladder.”
Aaron Strutt, product director at Trinity Financial, says: "This is a bold move by the Teachers and something most lenders would not be comfortable with, even though affordability rules have eased considerably in recent months.
"Taking a seven times salary mortgage might help teachers onto the property ladder, but before they take such a large income stretch, they need to make sure they are not overstretching themselves financially. Often borrowers need to borrow just over five or six times their salary, but with the Teachers BS' old affordability rules, they would not have been able to borrow enough.
"Mortgage lenders are offering between four and 6.5 times salary to borrowers at the moment, but the Teachers Building Society has gone a few steps further."
With a reported 614,391 teachers in the UK made up of staff working across the UK’s over 29,000 schools, including preschool settings, primary and secondary schools and other establishments such as special schools, Teachers is targeting a large market.
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