Teachers' Building Society

Teachers' Building Society is a UK building society based in Wimborne, Dorset, that has lent to teachers since it was founded, and today describes itself as a teacher first lender¹. It takes savings deposits from teachers and from the general public, and its mortgage range covers first homes, shared ownership, remortgages, holiday lets and buy to let.

It offers savings accounts and mortgages, and it is a mutual rather than a bank: it is owned by its members rather than shareholders, and it is a member of the Building Societies Association². Its savings range includes easy access accounts, notice accounts and fixed rate savings, and its best savings rates are reserved for teachers¹. On the mortgage side it describes itself as a specialist teacher mortgage lender, with first home purchase mortgages for early career teachers among its products¹. It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority, registration number 156580³, and eligible deposits are protected up to £120,000 by the Financial Services Compensation Scheme⁴.

The practical points for anyone arriving here: savings accounts are open to any profession as well as to teachers, only one applicant needs to be a teacher on most residential mortgages, and holiday let and buy to let lending is open to non-teachers⁵. Its best mortgage rates are set aside for qualified teachers⁷.

Savings accounts at Teachers' Building Society

The savings range splits into accounts open to any saver and accounts reserved for teachers and education staff. The society says it has "accounts that are open to savers of any profession, as well as accounts that are exclusively available to teachers"⁵, and that its best savings rates are reserved for teachers⁷. Fixed rate savings accounts are listed as available for all¹¹.

Joint accounts are available on all savings products except ISAs and pension accounts⁵. If you are building a first pot of savings, the society publishes an easy to read guide that takes you through the process whether you are starting your savings journey or want to build on it⁶. For how these account types compare across the market, see savings accounts and ISAs.

Two practical points apply to any account you open. When you pay money in, you must use your Teachers Building Society account number as the reference so the payment can be matched to your account¹². And when you open an account, the society asks for details and evidence of an account in your own name where it will send any withdrawals¹³.

Teachers' Building Society mortgages

The society's mortgage range is built around teachers, but not exclusively. It offers first home purchase mortgages aimed at early career teachers⁷, mortgages for ECTs (newly qualified teachers)⁹, shared ownership¹⁴, remortgaging¹⁵, home mover mortgages¹⁶, contract and supply teacher mortgages¹⁷, and holiday let and buy to let mortgages⁶.

It also provides fee free mortgage deals for what it calls its favourite professionals⁷. Some mortgage products may include a free basic mortgage valuation³. The rate you pay, and any arrangement or booking fee attached to a particular deal, depend on the product and the date; the society publishes the current figures for each deal, and its general charges document sets out the fees that can apply³.

Existing borrowers have their own set of options: additional borrowing for home improvements, support with moving home, switching to a new rate, and payment support¹⁹. Further borrowing is available to members who have had their mortgage with the society for at least 6 months, subject to affordability²⁰. For the wider picture on borrowing, see mortgages and buying a home.

Who can open an account or apply for a mortgage

Savings accounts are not restricted to teachers: the society has accounts open to savers of any profession alongside teacher-only accounts⁵. Holiday let and buy to let mortgages are open to applicants of any occupation, not just teachers and education professionals⁶.

For residential mortgages the rule is looser than the name suggests. On home mover mortgages, applications can be single or joint and just one person needs to be a teacher¹⁶. The same applies when buying with a friend or partner: only one of you needs to be a teacher to get the full benefits⁷. The society supports NQTs, experienced teachers, supply and contract teachers, and those buying with a non-teacher partner¹.

On income, the society lends teachers and education professionals up to 7 times single or joint income, subject to affordability⁸. On its standard range, a maximum of 4 applicants can apply, 100% of the income from 2 earners can be used with 50% of one further applicant, and 60% of secondary income can be used where it is supported by a primary income type¹⁸.

If you have secured a teaching post but not yet started, the society says it does not expect 3 or more months of payslips to get a mortgage application going, and a letter from the school confirming upcoming employment is accepted⁷.

How to bank with Teachers' Building Society

This is a small society without a branch network, so day to day banking happens by phone, post and online rather than in person. It operates the Confirmation of Payee system, which checks the name on an account when someone wants to pay into it¹³. It may issue passwords or other security measures that it asks you to confirm when you want to transact on your accounts¹³.

For paying money in from another bank, the society's own bank details are NatWest, Wimborne, sort code 60-24-43, account number 60230282, and your Teachers Building Society account number must be used as the reference¹². When setting up a payment, the account name to use is your own first and last name, not the society's name¹².

Mortgage appointments are by telephone, booked through an online form where you give your preferred day and time, and an adviser confirms the exact slot²¹. For holiday let mortgages you can call 0800 378669 or complete a form for a call back⁶. The society also runs Buyers Clubs on Facebook with over 8,000 teacher members⁷.

How to open an account or apply

For savings, the society asks for details and evidence of an account in your own name where withdrawals will be sent, and it checks your identity when you call to transact¹³. Keep information about your account safe, as its own guidance stresses²².

For a mortgage, the first step is a telephone appointment. The society asks you to have your name, address and date of birth, the value of the property you would like or have had an offer accepted on, and information about your income, such as gross annual income and net monthly take home pay²¹. It says the ideal time to get in touch is when you have a deposit saved, or almost there, and either want to know how much you can afford or have had an offer accepted²¹. There is a mortgage calculator on its website designed for teacher first time buyers²¹.

Mortgages are subject to underwriting and criteria⁸. When you sign a mortgage deed you automatically become a member of the society and are bound by its rules, and on completion of a mortgage you become a member unless you are a corporate body²³. Membership ceases if the society exercises its power of sale or takes possession, and may cease if the mortgage is transferred². Borrowers need written consent before taking out any other loan secured on the property or creating any charge over it².

Complaints: where to go if something goes wrong

The society asks that complaints about the way it has provided, or failed to provide, a financial service be raised through its normal complaints process, and it sets out a full complaints procedure on its feedback page²⁴. You can complain by letter, email or telephone²⁴. The online savings team can be reached on 0800 783 2367 between 9am and 5pm Monday to Friday¹⁰.

If a complaint is not resolved to your satisfaction, you have the right to take it further with the Financial Ombudsman Service²⁵. The ombudsman service is free to consumers and covers banks, building societies and other financial firms.

If you are struggling with mortgage payments, the society says to contact its principal office as soon as you think there may be a problem². It is signed up to the Mortgage Charter, so it can offer flexible, short term support for temporary payment difficulties²⁶. It will also point you to other agencies that may be able to help, such as StepChange, your local Citizens Advice, or the Department for Work and Pensions²⁷. Its tougher times pages cover payment difficulties, bereavement, mental wellbeing, the cost of living, power of attorney and fraud awareness²⁸. For wider help, see debt and scams and fraud.

How your savings are protected

Eligible deposits with Teachers' Building Society are protected up to a total of £120,000 by the Financial Services Compensation Scheme⁴. Your account statement confirms whether your deposits are eligible for FSCS protection⁴.

There are exclusions. A deposit is not protected if the account holder is a credit institution, financial institution, investment firm, insurance or reinsurance undertaking, collective investment undertaking, pension or retirement fund, or a public authority other than a small local authority; if it is not held at a UK establishment, or for UK-incorporated firms not at an establishment in Gibraltar; or if it is linked to a criminal conviction for money laundering⁴. Deposits held on behalf of underlying beneficiaries who are eligible for FSCS protection are not excluded, and personal, stakeholder or occupational pension schemes for micro, small and medium sized companies are not excluded⁴.

The FSCS also covers certain other claims, and publishes guidance on what it does and does not protect, including on financial advice²⁹. For how protection works across the market, see consumer protection.

Where Teachers' Building Society sits in the market

Teachers' Building Society is one of 42 UK building societies, a group the Building Societies Association represents alongside 8 of the largest credit unions³⁰. Building societies are mutual lenders and deposit takers, owned by their members rather than shareholders³¹.

The society was founded in the 60s and early 70s, when teachers were considered unattractive lending prospects by many high street lenders, and it was set up specifically to offer equality of lending to teachers¹. It is a member of the Building Societies Association². Its permissions on the FCA register are entering into a regulated mortgage contract as lender and accepting deposits³², and it appears on the Bank of England's list of UK building societies³³.

Its lending approach has been noted beyond its own marketing: in 2018 it was reported as one of five lenders offering mortgages at five times annual income³⁴. Today it lends up to 7 times single or joint income to teachers and education professionals, subject to affordability⁸. For how lenders assess borrowing more generally, see credit scores and lenders.