6,7, the viral ‘slang’ term accompanied by a two-handed palm up gesture being used by kids to mean so-so, maybe this-maybe that, or just something completely nonsensical, that continues to annoy parents, teachers, sports coaches and more has made its way to Teachers Building Society.
As a building society jumping on viral social trends isn’t always viable, but in this case I’m actually pretty excited about it because it marks something special.
Until last week, we’ve been proudly lending teachers and education professionals up to 5 times single or joint income, at a maximum 95% subject to affordability. But this week, we’ve jumped the 6 and gone straight to (up to) 7 times lending.
Why? Because helping first-time buyers, specifically teachers is what we do. It’s what we’ve always done.
In fact, when it comes to ‘social trends’ we’re actually ahead of the game. You see we had ‘purpose’ before it was cool, and lending at up to 7 times income is just our most recent move.
OUR ORIGIN STORY
You might have seen across personal finance news and company socials lately the celebration of 50 years since the Sex Discrimination Act was passed in 1975. This act made it compulsory for lenders to offer financial services to men and women on an equal basis.
Before that, when we were formed, in the 1960s, women routinely needed a male permission to even have a bank account. So borrowing a mortgage to buy a home was almost impossible. Women, even successful, professional, working women like teachers and headteachers would have needed a male guarantor to borrow enough to own a home.
So some clever, forward thinking, rebellious individuals started Teachers Building Society and started lending at 95% to teachers, male or female, on an equal basis. Their hope was simple: stop teachers leaving the profession.
Whilst we still stand by those founding principles today, delivering against them isn’t any easier. It’s as hard now to get on the housing ladder as its ever been. For many first time buyers, like teachers, saving is really hard in the face of high food and fuel prices. Those who rent face even higher hurdles.
Then there’s affordability: if they’ve saved 5% will they be able to borrow enough to buy a home in the place they want to live, and work? Then there’s availability of housing stock, and the price of homes. Hurdle after hurdle.
That’s why we’ve taken the step of increasing the maximum we will lend to teacher and education profession clients to up to 7 times single of joint income. To try and make it easier for them to secure a home.
FIRST-TIME BUYER REALITIES
But increasing the loan-to-income multiple isn’t just a numbers game for us. It’s about recognising the reality of life for today’s first time buyers. Teachers, and other key workers in crucial but lower paid professions aren’t just battling high rents and rising living costs — they’re also facing the emotional strain of feeling locked out of home ownership, even when they’re doing everything “right.”
They work hard, they budget, they save where they can, and yet the gap between what they can borrow and what properties cost in their area keeps widening. And they can’t always just ‘move’ to somewhere cheaper – we need teachers, nurses. Key workers everywhere. Getting them onto the ladder is problem we still see as our responsibility to solve.
our aim is simple: to stand alongside our borrowers at a time when they need a lender who genuinely understands them
We know that increasing lending isn’t the whole answer to the UK’s housing challenges, but for many teachers it could be the thing that moves home ownership from a distant hope to a tangible, achievable plan. And with appropriate checks, strong affordability assessments, and our continued careful yet personal approach to lending, we’re confident this change will support the people we exist to serve, without compromising our responsibility as a mutual.
This isn’t a one-off decision, either. It’s part of a broader commitment to evolve with the needs of first-time buyers. Our lending has to move with them. Offering mortgages up to 7 times income — responsibly and with the right safeguards — is a demonstration of that commitment in action.
Ultimately, our aim is simple: to stand alongside our borrowers at a time when they need a lender who genuinely understands them. If this change helps even a few more would be homeowners put down roots, stay in the communities they serve, and feel a sense of stability in their personal lives, then it’s a change worth making.
For us as a Society, there’s nothing more aligned with our founding purpose than that. And for me, a newbie to the world of mutuality (I’m 7 months in) it’s exactly what I came here to do: work harder for our members.
