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Mortgage Advice in Leeds for Newly Qualified Teachers

Newly Qualified Teacher Mortgage Advice in Leeds

If you have reached your goal of completing all the required exams to become a Newly Qualified Teacher, you are probably looking at the next step. With all your new skills and qualification, you will be looking at finding yourself a teaching position.

You may find a teaching position that is based in an area that is too far to commute which could mean you looking at option available for you with Moving House in Leeds.

With this in mind, you may be looking at finding yourself a place to live. Due to keeping the balance between homeownership and settling into your new role, you may find this an exciting yet stressful time.

Throughout our time as a Mortgage Broker in Leeds, this situation has happened to numerous home buyers and homeowners who were wanting the process to be stress free and smooth while they focus on their new career.

Newly Qualified Teacher Mortgages

As a Newly Qualified Teacher, it can be a challenge to look for a mortgage lender who will be happy to offer a mortgage to an individual who is a newly qualified teacher.

This could be for a number of reasons, one being a lack of or no work history to show or because they only have a temporary contract.

Despite these being an issue, there are numerous options for Newly Qualified Teachers who are looking to get a mortgage. Here at Leedsmoneyman, our knowledgeable team of Mortgage Advisors have helped a lot of NQTs on their journey of obtaining a mortgage with a Mortgage Broker in Leeds by their side.

On your mortgage journey as a Newly Qualified Teacher, it can be common to find that there are a small number of lenders who have deals suited to public sector workers like teachers.

In order for everything to run as smoothly as it can, it’s important that you choose the best mortgage lender for your circumstance. This part of the process can be the most difficult out of the full mortgage journey.

This is where a mortgage advice team in Leeds can help by searching through thousands of mortgage deals for you in order to get the most suitable deal for your circumstances.

What mortgages for NQTs may be available?

Even though mortgages can be complex for New Qualified Teachers, there are still options out there available to you on the mortgage market.

Below are the types of mortgages that we find regularly come up when we are dealing with cases involving Newly Qualified Teachers.

  • Help-to-Buy Schemes – A government backed scheme that is designed to help first time buyers who are in the market looking to purchase a new build home.
  • Fixed-Rate Mortgages – A mortgage types that we find is used quite a lot and keeps the interest the same throughout the term therefore keeping the monthly payments the same.
  • Shared Ownership Mortgages – Also referred to as ‘part buy part rent’, that gives first time buyers a chance to buy a share of the property. The other part of the share is owned by a third party like a housing association. This type could make your monthly outgoings easier to manage.
  • Tracker Mortagage: A type of variable rate mortgage, which the interest rates follow the Bank of England’s base rate. This can cause a fluctation into your montly mortgage payments.

When it comes to NQT mortgages, there are more other factors lenders might consider. In some cases, depending on the lender, they might not ask you to evidence previous employment and may let you get up to a 95% LTV (loan to value).

Some mortgage lenders may treat a 12-month first contract the same as a permanent job role, instead of seeing it as a temporary contract.

A small majority of mortgage lenders around the country could get you on your mortgage prior to beginning your job. This does mean you have to show them a signed contract and a confirmation of your start date.

This can be helpful for you, especially if you are preparing to start making your first mortgage payments at the same time as your first month’s wages from your new job is due, around the time your mortgage has completed.

How a Mortgage Advisor in Leeds may Help

At Leedsmoneyman, we have a team of knowledgeable mortgage advice experts in Leeds all with a vast amount of knowledge and experience in helping customers in the world of mortgages and the property markets, helping numerous first time home buyers with their mortgage needs.

Having a dedicated Mortgage Broker in Leeds by your side in the mortgage process can have many benefits. Our goal is to take the stress away and provide a tailored service through searching thousands of mortgage deals to find the one that is fitting for your situation. We also can recommend possible conveyancing solicitors for you to use and more.

If you are wondering what options are out there for you as a first time home buyer, book online for a free mortgage appointment with one of our expert mortgage advisors in Leeds. In this appointment, your dedicated advisor will ask you about your situation and help you with the next part of your journey.

Getting Prepared For a Mortgage Application in Leeds

First-Time Buyer Mortgage Advice in Leeds

After saving for months/years, you are now at a point where you can put all your hard-earned savings down for a deposit on a flat/house. Now it’s time to get mortgage ready!

You might be a First Time Buyer in Leeds stepping into the mortgage world for the first time or you have experience in the home buying journey as a homeowner and are looking at moving home in Leeds. Either way, our tailored service would prove beneficial. Below is some helpful information that will help you have a grasp on what the mortgage process entails and provide you with information on what you need in order to be mortgage ready for your application.

Get mortgage ready in Leeds

Know where you stand

Firstly, getting Mortgage Advice in Leeds should be at the top of the list. Having an experienced Mortgage Advisor in Leeds by your side guiding you through the process, advising the best route for you in terms of your personal and financial circumstances can be very beneficial.

If you are looking at the amount you may be able to borrow for a mortgage and the amount it will cost, seeking Mortgage Advice in Leeds can help indicate this. Before your Mortgage Advisor in Leeds can begin the process of looking into competitive mortgage deals for you, affordability and a borrowing capacity assessment will need to be carried.

A Mortgage Broker in Leeds, like ourselves, can provide a helping hand throughout the process as well as support you in getting the basics prepared for your mortgage application. In order for your Mortgage Advisor in Leeds to understand your financial position from the very beginning, they will request an up-to-date credit report.

Getting organised for your mortgage

At the start of your mortgage journey, you will need to obtain an agreement in principle. This should be your first priority because without it you won’t be able to make an offer on a property.

Here at Leedsmoneyman, we work hard to provide you with a fully credit-checked agreement in principle sorted for you in 24 hours to take some weight off your shoulders. We would need you to prove who are you are by providing the following:

  • Name,
  • Where you live,
  • How much you earn.

It’s good to be organised as there is a lot of paperwork you will need to collate. Therefore, it’s best to create a file for yourself and start collecting this in advance.

Proof of ID

In order to start the mortgage process, you will need to provide some form of identification. This needs to be a photographic ID like a Driver’s License or a Passport.

Proof of address

As well as the aspects mentioned above, you’ll need concrete evidence that you live at the address that you say you do. Evidence you’ll need could be a utility bill or original bank statement dated within the last three months.

Last three month’s bank statements

One of the most determining factors that can massively contribute towards whether you’ll qualify for a mortgage or not is your spending habits. Your bank statements are something your lenders like to take a look at because they can get an idea of what goes into your account and what goes out. This provides an insight into if you’ll be able to manage your monthly mortgage payments as well as your other expenditures.

One of the main things that lenders look for on your bank statements is gambling transactions. This factor can cause risk further down the line which is why lenders will look at if you do frequently gamble and will be cautious towards this. If you are constantly gambling, lenders won’t risk the chance. Another thing lenders will see as a drawback is if you are regularly going over your overdraft limit or if your direct debits bounce consistently.

Proof of the deposit for your mortgage

For anti-money laundering purposes, you will need evidence that you have the funds in place for the deposit. It’s best that you try not to move the monies around your various accounts too much because it will make evidencing the audit trail more challenging. Your savings building up is something lenders like to see, therefore, you’ll need to account for any extensive credits in your accounts.

There has been a recent increase in the popularity of gifted deposits, we have seen that they contribute towards many people’s 5%. Usually, gifted deposits are generally from a family member or friend of the applicant. In order for these funds to be evidenced properly, the “donor” of the funds will need to sign a letter confirming and evidencing that this is a gift and not a loan.

Proof of income

Proving your income is one of the most important things when it comes to affordability. Employed applicants usually will need to evidence this through the last three months’ payslips and most recent P60. Regular overtime, commission, shift allowance and bonuses is another thing lenders can factor in. Whereas self employed will need help from their accountant by requesting your tax year overview.

A list of your expected outgoings

Looking into an estimated amount of your anticipated outgoings after you move house can always be helpful. Furthermore, you can work out an estimation of how much the council tax and utility bills will be. On top of this, you can work out regular expenditures like food and drink. Taking all these into account will show how much disposable income you have available to your mortgage.

When applying for a mortgage, it can be a challenge if you are doing everything on your own as things can become complicated. With a Mortgage Advisor in Leeds being there every step of the way can be very helpful. Impressing your lender by showing them you have done all you can within your power to get prepared for your mortgage application can be challenging. We can assist you with this by providing the best impress of you to your lender and we would have everything prepared for you within 24 hours of free mortgage consultation depending on your circumstance.

Can I Port My Mortgage to a New Property in Leeds?

Porting a Mortgage in Leeds

Porting a mortgage takes place when you are looking to move home at the time of your fixed-rate deal. It’s actually possible as a homeowner to transfer your mortgage product and you will potentially have the option to port your mortgage if necessary.

Instead of paying the early repayment charge (ERC), the lender might give you the option to pick up the remaining amount on your current mortgage and move into the property. This option is not available to all applicants moving home as it depends on where you’re looking to move and if the lender will let you proceed with porting the mortgage.

Taking out a Second Charge mortgage can be an option if the property is valued more than what you will be paying back. If you are wanting more information about this, check out our MoneymanTV YouTube channel with our video: What is a Second Charge Mortgage?

Are all Mortgages Portable?

You may find that not all mortgages are portable, especially if you are with a specialist lender as the option to port may not available to you. To find out if you can port your mortgage or not, contact your lender who can confirm this for you.

Should I port my Mortgage?

Despite porting be an option for some customers, many decide not to. The reason for this might be that your lender will not lend you extra money so you can move. If you are provided with additional funds, this will be at a separate rate from the one on your current deal. You might turn down the new deal you have been offered and decide to take the early repayment charge and go to a different lender.

What is a Sub Account?

When you port your mortgage, a sub-account on your mortgage is created. The additional funds will go onto a different deal to the one you have on your current mortgage. Regardless of you having one mortgage and one direct debit, two different rates of interest will apply to each.

The annoyance that can come with having sub-accounts is that down the line you may the different products will overlap. Aligning the accounts could mean that one of the sub-accounts will have to go onto the lenders’ standard variable rate for a certain period of time.

Here at Leedsmoneyman, we can offer mortgage advice when it comes to porting mortgages. Therefore, if you are moving house in Leeds and dealing with a buy to let mortgage or you are in need of support with a self employed mortgage, booking a free appointment with one of our dedicated mortgage advisors can help explore your options.

Leeds Mortgage Advice on Porting a Mortgage

Leedsmoneyman.com & Leedsmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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