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Supply and mortgages

Discussion in 'Supply teaching' started by sophiethompson258, Oct 14, 2018.

  1. sophiethompson258

    sophiethompson258 New commenter

    Hi all,

    I'm currently working on supply and getting regular full weeks, so at present I'm going to be bringing home the same wage a month that I did whilst contracted last year.

    My partner and I have found a house we absolutely love and want to take it further and I'm already starting to look for permanent positions that might pop up, so I'm hoping to gain a contract before the start of the next school year, earlier if possible.

    My partner works in fraud and earns 20k a year so we know we can afford to do this, but I'm really put off by a lot of online searches which constantly say supply teachers won't be given mortgages and others saying they will if we hit certain criteria.

    Has anyone ever been through this that could offer some advice? TIA
     
  2. pepper5

    pepper5 Star commenter

    If you search this site, you will probably come up with some threads about this topic - I am sure you will.

    Your biggest challenge will be for the deposit. If I were you, I wouldn't bother with a mortgage now until you get a permanent post and try to save over and beyond what is required for the deposit.

    A year or two years of saving everything possible for a bigger deposit plus a permanent job will give you PEACE of mind.

    Don't be deceived in a "house you love" as it isn't worth the worry about meeting the payments each month. Far, FAR better to have peace of mind knowing you have a roof over your head and can make the payments.
     
  3. ABCCBA123321

    ABCCBA123321 Occasional commenter

    We found my income didn't exist for the purposes of mortgage calculations when I was doing supply and we bought this place - so we had to get what we could on my husband's income multiplier alone (and now we're going to basically living on the side of a dual carriageway rerouted for HS2 under a road flyover with no option to move - but that's another story).
     
    agathamorse and pepper5 like this.
  4. AnotherDayTowardsRetirement

    AnotherDayTowardsRetirement Occasional commenter

    I’ve been in a similar position but with a temporary contract rather than on supply. I bought a house in 2015 with my partner (now my wife) and found conflicting policies from lenders.

    My advice (for what’s it worth) is to apply online as the application process is sometimes not as stringent as a paper based or face-to-face bank application.

    I was asked to complete details of my income and only asked to confirm my annual salary, current occupation (from a drop down list) and how long I’d been with my current employer. I wasn’t asked the permanent or supply question. My wife was asked to confirm the same questions for her own employment.

    Mortgage applications are largely decided by computer algorithms rather than people, and I am convinced the computers processing our application were blinded by occupations of ‘teacher’ and ‘chemical engineer’ and felt both occupations offered good odds of being able to find secure, relatively well paid, relatively stable jobs to keep funding mortgage repayments.

    Lenders are largely only concerned with the likelihood of applicants repaying their borrowings over the full term of the mortgage (the lenders make more money the longer it takes to repay) so ‘steady occupations’ are usually accepted if you can afford the monthly payments. Lenders feel teachers are a good safe bet for continued earnings and being able to afford the mortgage payments.

    Also, the bigger deposit you can conjour from somewhere the bigger chance of having the mortgage balance accepted too.

    Lenders also know ‘professionals’ tend to (statistically) source more financial products throughout their careers so they want to establish a financial relationship with you NOW so they are in a better position to sell you more financial products in future !

    As long as you keep making the monthly repayments the lender won’t give a toss what your job circumstances are.... And if you are likely to have equity in your home they’ll authorise the mortgage anyway.

    Best wishes playing the financial system to your advantage. Remember it’s still a buyers market and banks like teachers !
     

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