Navigating your mortgage options is something a lot of people find confusing, but it can be extra challenging when your life hasn’t followed the typical civilian trajectory. If you’re part of the Armed Forces, whether you’re a soldier, an officer or you’re away from the front line doing essential work like medical, intelligence or HR, you may need more flexibility than your civilian counterparts.
Being in the Army means you’ve probably spent time overseas or in a barracks. Your address history may be confusing to the average civilian. Your schedule is less predictable because you may be sent overseas at short notice. You might not have much of a credit rating, which can add a layer of complexity to getting a good deal on a mortgage. You may also be struggling with the initial deposit and proving financial stability due to being stationed abroad and part of your income being in allowances.
Are there specialist mortgages for Armed Forces?
Yes. Whether you’re a veteran or active in any capacity in the Armed Forces, Air Force, Marines or Navy then you can access exclusive mortgage deals and schemes designed for military personnel.
As someone who is or was working in the military, you can access better deals and government schemes that other people can’t get. Military mortgage benefits include:
- Flexible lending approach. Mortgage lenders that specialise in Armed Forces will know that your circumstances can fluctuate. They can help you navigate challenges like being stationed abroad or having a lower base salary.
- Overseas service. Lenders can be flexible and understanding about your income and tax residency complications.
- Waving the 24-36 month UK residency requirements if you’ve been stationed overseas.
- They may be able to waver early repayment charges if you have to move sooner than expected.
- Lower deposit requirements. Lenders that work with the Armed Forces may allow for a lower initial deposit.
- Better deals. Some lenders may give you cheaper rates, discounts and goodwill gestures.
- Renting your home. Lenders may be more lenient if you have to rent your home due to going overseas.
Government support schemes
- If you have at least six months left to serve, the Forces Help to Buy Mortgage allows you to borrow up to 50% interest free (maximum £25,000) of your salary to help you buy a house.
- While not specifically for the Armed Forces, the First Homes Scheme helps first-time buyers purchase a house for 30%-50% market value.
- The Shared Ownership Scheme enables you to buy a share in your property from 10%-75% market value.
- The Armed Forces Compensation Scheme for those injured while in service.
How do I show that I qualify for mortgage protection options?
Make sure you have your military records of service or, if you’re a veteran, your HM Armed Forces Veteran Card for identification. You will also need to show your income history records and credit history.
Are you in the Armed Forces and looking for advice on your mortgage? Get in touch with our advisors on 0345 450 4660.
