Mortgages for Teachers
Teachers qualify for higher Mortgage
ICS came into the market of homeloans a couple if months ago and have disrupted the marketplace with their lending criteria.
Where they are going to make a big difference is how they view Teachers income and in fact all Civil/ Public Servants income.
All lenders use your income in the first instance to calculate the amount of lending available to you.
ICS will calculate the lending figure for Civil/ Public servants based on 2 points up on your pay scale.
ICS Mortgages is a 150-year-old brand that was originally established to service the needs of the Public Sector. So, they are going back to their roots.
They are offering slightly different lending guidelines for this sector due to the security of their employment and potential future earnings. The basic income for Public Sector employees will be considered to be two points up their current Pay Scale.
With regard to Variable income the following will apply
- Overtime: Up to 100% of regular overtime earned may be factored into our assessment if the employer confirms it is regular on their salary certificate
- Allowances: 100% of contractual allowances will be factored in if the employer confirms it is guaranteed and is evident on the most recent Employment Detail Summary and on target income for current tax year
- They will consider employees who are promoted within the Civil Service on a one year ‘probationary’ period.
- New entrants to the Civil/ Public service who are subject to any probationary period will be reviewed on a case by case basis. An applicant’s previous employment history is required to establish their experience and suitability for their new position.
- Only one applicant needs to be a public sector employee to apply for this competitive mortgage proposition.
- Their rates will be the same for Public sector and non-public sector applications
Helen is a teacher and was appointed before January 2011, she is currently on .9 on the pay scale. Her basic income is €46,278.
Based on this income Helen would qualify for a mortgage of €161,973 with the traditional lenders.
We can now increase Helen’s income by 2 points to €49,629, now Helen would qualify for €173,700
A difference of €11,727.
So, as a Civil/ Public Servant ICS will lend more than any other lender in the market place at this time.
Warning: In the example above we used a simple income multiple of 3.5 times to work out the amount of available lending. A higher lending amount may be available if Helen qualified for an exemption. Other lending terms, conditions and criteria apply.
As you can see lending criteria differs between lenders, the amount of lending available can differ greatly between lenders, so, it is important to speak an advisor/broker who knows the market place and who has access to a number of lenders, as well as some that are not on the high street.
Our advice is, if you are thinking of applying for a mortgage, or looking at your existing mortgage, get advice, this will be one of the biggest decisions you will make in your lifetime.
Asking for help and advice is first place to start