Get in touch for an initial free, no obligation chat with an advisor about how we might be able to help.
Get in Touch
Military Mortgage – Finding a suitable deal
Many mortgage companies recognise the importance of your work in the armed forces, which means there are often special deals for military personnel. We can help you explore the options.
What is a Military Mortgage?
Because a military lifestyle can make it more complicated to get a standard mortgage, certain lenders make special allowances for people in the armed forces. These providers recognise some of the challenges of a military lifestyle, which might involve postings at short notice and living abroad. A further concern for military applicants is that you may have a poor credit rating, especially if you have spent a lot of time overseas.
How do you apply?
The process is the same as for any mortgage – you seek mortgage advice, find a suitable product and complete the application forms. You will need to provide evidence of your income via payslips and bank statements, and the lender will check your credit record.
Getting advice from a mortgage broker will ensure that you meet all the criteria for your chosen mortgage deal.
What mortgage assistance is available for military personnel?
Military mortgage lenders allow for the differences between your situation and the average homeowner. These might include:
- An understanding approach to poor credit
- Your property being unoccupied for certain periods of time
- Allowing you to buy in the UK while stationed overseas
- The ability to rent out your property on a standard mortgage while you’re stationed elsewhere – which would normally require a Buy to Let mortgage.
How much can I borrow?
Lenders calculate how much to offer you based on your income and outgoings. The total will depend on your specific circumstances, but broadly speaking you can often borrow up to four or five times your income. A joint mortgage will take both incomes into account in calculating the total.
How can I improve my chances of acceptance?
Mortgage acceptance is all about meeting your lender’s criteria. These can be quite lengthy and detailed, which is why working with a broker makes things simpler.
We know the lenders that are more likely to accept you and will make sure that you meet all the requirements before recommending a military mortgage deal.
Are there schemes available to help me buy a property?
The first scheme to look at is the Forces Help to Buy Scheme. It lets you borrow up to 50% of your salary for a property deposit, interest-free, up to a maximum of £25,000.
The scheme is open to any member of the military as long as you meet a minimum length of service and have at least six months left on your contract.
You will need to repay this loan when you leave the forces, or at the end of 10 years, whichever comes soonest. You could choose to remortgage to repay the debt, or repay it slowly over the 10-year term. More information is available on the Government website.
Other Help to Buy schemes
It may also be worth looking at the Government’s Help to Buy Equity Loan scheme, which enables you to buy a home with just a 5% deposit. It is only available for First Time Buyers on new build properties.
The Government loans you up to 20% of the home’s value, interest-free. You can use this as your deposit and take out a mortgage for the rest.
What if I am deployed?
If you are deployed during the mortgage application process, we can continue to act on your behalf and keep your mortgage application moving along, liaising with you along the way to gather and submit all the required documentation.
If deployment comes up once you own the property, you will have a few options. You can choose for your family to stay in the property during your tour, or leave the property empty while you’re away. You could also talk to your lender about letting it out, with the rent covering your mortgage payments.
How can the Mortgage Mum help?
Finding a suitable military mortgage market can be time-consuming and complicated, so let us help. Our mortgage advisors have a lot of experience in helping forces personnel buy a home.
We start by getting to know you and exploring your personal situation, your property goals, and career stage. Then we explore the market to find lenders that have military and armed forces mortgages that will suit you.
Contact us today to see how we can help you.
Your property may be repossessed if you do not keep up with your mortgage repayments.