There are certain times in life when people need to borrow money, no concern what their profession. Personal teacher Mortgages can be used for a number of different reasons such as for home improvements, consolidating your debts, paying the cost of your car repair bill or funding your daughter’s wedding. One of the main aims when getting a Mortgage is to get the one that will work out to be the most affordable and flexible for you in your current personal situation.
Anybody can apply for a Mortgage, but it seems to become more and more common for young professionals to start applying for online Mortgages. Mortgages for teachers and other professionals are very common nowadays. Obviously, the cheaper the Mortgage the better, and they’re a few good ways in which to ensure you have secured the cheapest Mortgage deal possible.
The number of companies that offer Mortgages for teachers can provide low-cost Mortgages, but there are certain ways to increase your chance of being approved for a cheap teacher Mortgage. Here are 5 pointers to getting the cheapest Mortgage possible.
- Get a secured homeowner Mortgage
Homeowner Mortgages for teachers can work out to be one of the most economical ways of borrowing money. If you are planning to apply for a large sum of money they could well be your best choice. A homeowner mortgage is also known as a secured Mortgage because you must be paying a mortgage to be eligible for one. Your house is used as security for the lender which enables them to offer a cheaper interest rate and allow you a longer repayment period.
- Get a bigger teacher Mortgage
I know this sounds a strange statement, however it could work in your favour. Many Mortgage companies have a tiered scale of interest rates that change depending on what amount of money is borrowed. Smaller Mortgages which are mainly paid back over a shorter period of time, are effectively less profitable for the lender, so a higher interest rate is generally charged. By just going over to the next stage, you could end up on a cheaper interest level and pay less overall.
- Employment history
Being in a good job, such as a teacher or any other education professional, can rule in your favour. Lenders will always look at the employment history of each applicant and use it as a basis to make their decision on. Teachers have good job security and with there being plenty of employment opportunities, you are unlikely to become unemployed. Teachers also enjoy a good salary when compared to the national average and so as a rule Mortgages for teachers are often readily offered and at a good rate too.
- Good Credit History
It is essential to have a good credit history when looking at applying for a teacher’s Mortgages and expecting to get the cheapest deal. Every time you apply for, use or make a payment to a Mortgage, mortgage, credit or store card you leave a ‘footprint’. Missed payments, defaults and arrears will all be recorded for a certain time and could damage your credit rating.
- Get a shorter Mortgage
If you are applying for a Mortgage for teachers, try and set the repayment term for the shortest amount possible. Be realistic about what you can afford each month for repayments and work out how quickly you can repay the mortgage in full. The idea is that by having the Mortgage for less time, you will end up accumulating less interest on the amount you have borrowed, meaning you would pay less overall for a 3-year Mortgage than you would for a 5-year Mortgage.