Mortgages For Armed Forces Personnel

Getting a mortgage can be tough for people in the Armed Forces.

Military members can have a hard time getting a regular mortgage because they move around a lot and their financial history looks different. Unlike civilians who stay in one place and pay bills regularly, Armed Forces personnel might not have as many financial records, which could make borrowing money harder.

But don’t worry, there’s help available.

Are there mortgages for Armed Forces personnel?

Specific mortgages for those in the military don’t exist. Instead, some lenders recognise the challenges of a military lifestyle, and have more flexible underwriting to assist you.

You’ll get the same interest rates as civilians. Likewise, you must provide the same documents. Lenders can be more flexible with their criteria for servicemen and women, but your borrowing potential will be assessed the same as anybody else.

Specialist lenders for military mortgages may be able to help in other ways, such as:

• Allowing you to buy in the UK while stationed overseas
• Giving you permission to rent out your home while stationed elsewhere
• Providing flexibility regarding how long the property can be unoccupied for

Most lenders will also accept Forces Help to Buy as a deposit.

What is Forces Help to Buy?

Forces Help to Buy is a Government scheme. It lets military members borrow up to half of your salary, but no more than £25,000. This money can be used for things like a deposit on a house and associated fees, like those for solicitors.

The loan doesn’t have any interest and you have up to ten years to pay it back. You can start paying it back right away, after six months, or in your last ten years of service.

Since it’s a loan, banks will consider the monthly payments when they decide if you can afford a mortgage. This might affect how much you can borrow. You’ll also have to pay a small fee each month for insurance to protect the loan. This is separate from insurance to protect the mortgage.

Who can apply for Forces Help to Buy?

This scheme is for people buying their first home or those who need to move, for example if you’re being stationed in a new place or have special family or health reasons.

You or your close family should plan to live in the house you’re buying. If you’re stationed overseas, there might be exceptions.

You can’t use it to buy a house to rent out or for a second home.

There are also other rules about how long you’ve been in the military and what job you have. Reservists can’t apply.

You can apply online, and there are guides to help you. Once the loan is approved, you might need a Personal Information Note (PIN) when you apply for a mortgage.

Can I still leave the Armed Forces after getting the loan?

Yes. However, any outstanding loan balance will deduct from your terminal benefits, such as a resettlement grant.

If you can’t repay the loan in full before leaving, you will need to continue making monthly repayments.

How can The Mortgage Store Chorley help with mortgages for Armed Forces personnel?

Looking for a mortgage as a military member? At The Mortgage Store Chorley, we’ve got you covered! 

We specialise in finding the right mortgage solutions for Armed Forces personnel, including options like Forces Help to Buy. We understand the unique challenges military life can bring, from frequent moves to unique financial situations. What’s more, we work around you, with evening and weekend appointments available to fit around your lifestyle.

Whether you’re a first time buyer or considering Forces Help to Buy, we’re here to provide guidance and support throughout the process. Contact us today!