Its an innovative offering that allows parents to guarantee additional funds over and above those met by their child's salary multiples. Originally established by the National Union for Teachers (NUT) to look after the financial interests of education professionals, Teachers Building Society is an independent mutual building society providing competitive mortgage and savings products to the education sector.
As property prices across the UK rocket with the average house price in the UK in July 2005 at £186,207*, one of the major difficulties facing first time buyers is the high cost of properties in relation to teachers' salaries. A number of mortgage lenders will allow parents to provide a guarantee to the whole mortgage in order to secure a higher loan, but this can lead to the parent experiencing credit difficulties in the future. The Teachers Building Society offers the ideal solution to this issue with its new Mortgage Guarantor Scheme. For example, a teacher earning £21,000 per annum with no commitments would normally be offered a mortgage at a multiple of four times their salary and therefore qualify for a mortgage of £84,000. If the loan required is £125,000 and the parent is in a position to stand as a guarantor the Teachers Building Society will only require them to guarantee £41,000 as opposed to the whole mortgage.
Mike Hislop, Marketing Manager, Teachers Building Society, commented: "As a building society that recognises the needs of teachers it is important that we offer this guarantor scheme which takes into account the difficulties facing teachers in today's housing market. We provide an attractive portfolio of mortgage products including fixed rate and cashback schemes and we now feel we have something to accommodate all levels of teachers from Newly Qualified Teachers and upwards."
For more information on the Teachers Building Society please contact 01202 843 500, Email [email protected] Web:www.teachersbs.co.uk
