Teachers Building Society provides individuals and joint owners, a Mortgage Guarantor Scheme and 100% Shared Ownership plan for first time buyers as well as fixed rate, discount and cashback schemes. Originally established by the National Union of Teachers (NUT) to look after the financial interests of education professionals, Teachers Building Society is an independent mutual building society providing a range of mortgage and savings accounts.
As property prices across the UK rocket with the average house price in the UK in November 2005 at £186,431*, Teachers Building Society recognises that one of the major difficulties facing first time buyers is the high cost of properties in relation to teachers' salaries. Newly Qualified Teachers (NQTs) can get onto the property ladder with the Teachers Building Society Mortgage Guarantor Scheme - a flexible scheme which allows parents to guarantee additional funds over and above those met by their child's affordability amount.
Another option is the 100% Shared Ownership Plan for Teachers, a rarity in the mortgage marketplace as the Teachers Building Society is prepared to offer a 100% mortgage on a Shared Ownership property. There is also the Shared Ownership Plan for Key Workers and both these mortgages allow first time buyers to pay a mortgage on a share of the property and pay rent for the remainder. Teachers on these schemes can gradually increase their share of the property as they can afford it.
NUT members buying their first home can take out a 100% Three-Year Fixed Rate mortgage, provided they have completed at least 12 months in a teaching post. Other first-time buyers can take advantage of a Two-year Fixed Rate Plan, which provides a loan of up to 95% the purchase price, or opt for a Head Start Plan, which offers a discount for the first two years.
For those requiring the security of a fixed rate plan, mortgage products are available offering fixed-rates for periods of up to three or five-years, while those opting for a variable rate mortgage can enjoy discounts on the first three years' payments. A Cashback Plan, offering 4% of a 75% loan back in cash (3% on a 95% loan) can help with the cost of setting up home.
The Teachers Building Society prides itself on offering a personal service with customers looked after by just one member of staff throughout the consultation and mortgage purchase process. The Society is prepared to base mortgage lending to teachers on other saving and spending factors - not on salary multiples, thus enabling more teachers to get a firm footing on the property ladder.
Mike Hislop, marketing manager, Teachers Building Society, said, "Now is the time for teachers thinking about buying a new home to take action. We understand what it is to be a teacher who wants to buy their own home in today's market and believe we have something to help teachers of all levels to achieve that goal."
