6 things to consider with an Armed Forces Mortgage
If you’re a member of the Armed Forces, it can be more complicated to get a mortgage. With that in mind, we have produced our guide of 6 things to consider with an Armed Forces Mortgage. We know which lenders are sympathetic to military families and have contacts with the specialist lenders who have increased flexibility. We can take the stress and hassle out of looking for and applying for your armed forces mortgage.
1. Are you eligible for the Forces Help to Buy Scheme?
The scheme is designed to helped UK Forces Personnel to get on the property ladder. Serving military personnel are permitted to borrow up to 50% of their salary (capped at £25,000) to buy their first home, extend their current one or move to another property on assignment or as their needs change. The loan can also be used towards a deposit and other costs such as solicitor and estate agents’ fees and can be repaid over a period of up to 10 years. Applying can be quite complicated, so we would advise you speak to a mortgage broker who can help explain the whole process.
2. Is the property going to be empty for extended periods of time?
Most lenders will have criteria for how long properties are allowed to be empty for. So, if you have to leave your home unoccupied because you are abroad or deployed elsewhere in the UK, this can be a problem with standard lenders. But with some specialist military lenders, they will allow for periods of inoccupancy within the mortgage terms, as long as you let them know.
3. Do you want the option of renting the property?
Most standard residential mortgages don’t allow you to rent out the property. But if you know you’re likely to be deployed for long periods of time, you might want the option to rent your property. This is called “consent to let” and specialist lenders will allow this flexibility within their mortgage criteria.
4. Have you been or do you currently live abroad?
Most mortgage lenders will require you to live in the UK if you are buying a property in the UK. So another useful areas of flexibility offered by specialist military mortgage lenders is that the homeowner can live abroad and still buy a property in the UK.
5. Have you moved frequently over the past few years?
Perhaps your credit score is low because you have been stationed abroad for long periods of time. Or maybe you’ve been stationed at several UK bases meaning you have multiple addresses over the last few years. We know which lenders will accept low credit scores and are sympathetic to military personnel.
6. Do you want to buy a property now to live in when you leave the armed forces?
You may be happy living in military accommodation. But perhaps you want to get on the property ladder now so that you have a home waiting for you when you leave the forces. If you are looking for a Buy to Let mortgage, we can help
6 things to consider with an Armed Forces Mortgage
We are not like other brokers. We understand how Armed Forces Mortgages work and we would love to work hard for you.
Don’t just take our word for it. Why not read about Andrew and Helen who were recommended Your Mortgage Expert by a friend. We helped them access a mortgage after Andrew left the military.
We have over 100 five star reviews on Google and over 90 verified reviews on VouchedFor. We understand that getting a mortgage as a member of the armed forces can be more complicated. We know which lenders are sympathetic to military families. We have contacts with the specialist lenders who have increased flexibility for forces families around areas like consent to let, living abroad and properties being empty for extended periods.
We hope you’ve found this article on 6 things to consider with an Armed Forces Mortgage useful. If you would like to speak to a member of the mortgage advice team contact us now on 01722 322683. Or complete a contact form using the link below.
The Financial Conduct Authority does not regulate the Forces Help To Buy Scheme.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
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“This was knight in shining armour stuff. Our conscientious mortgage broker was a delight to deal with from the off and the key to our dream home.”
Max and Martha, First Time Buyer customers from Cardiff
“Being in the Armed Forces I am away a lot, meaning it can be hard to attend meetings, answer emails and especially hard to fill in forms. Adam and his team were extremely helpful and understanding of our situation and provided help wherever they could. After our initial meeting where we provided our required details, we actually did very little of the hard work, apart from signing a couple of papers.”
Callum and Verena, First Time Buyer Armed Forces Mortgage Customer from Salisbury
“I expect my circumstances were fairly rare, but the help and guidance I received from you was invaluable. I feel that the personal touch you provide offers something that appeals to the soldier in me. During my service I always liked to have a point of contact, someone who was the “go to” specialist in their field. This provides a degree of assurance about a situation and it was refreshing to find that same degree of certainty transitioning to civilian life, particularly with something as important as a mortgage and buying our family home.”
Andrew and Helen, Armed Forces Mortgage Customers from Salisbury
“Even though we were used to having a mortgage on the rental property, paying a mortgage on your own home was still a bit of a shock after years of having married quarter rental deducted from your pay at source. But, at every step along the way, we felt reassured, understood and that we really mattered to Adam. Trust is an important concept for military families and we trusted Adam.”
Fiona and Graham, Armed Forces Mortgage Customers from Wilton
“As a contractor, it was difficult for me to obtain a mortgage through normal channels so it was great to find a mortgage adviser that specialised in contractor remortgages and understood the challenges. In addition, I had fairly tight timescales, so wanted someone who could make the process quick and hassle free.”
Andrea, Contractor Mortgage Customer from Warminster
“I am a contractor, therefore require specialist mortgage advice. Adam has now concluded two mortgages for us (new mortgage then a contractor remortgage), and is currently arranging a buy-to-let mortgage for us. He also arranged our life insurance for us. We keep returning to him for some great reasons – he is always available, and ready to help. He provides great advice, and always ensures that he meets our requirements exactly. He is prepared to explain things in such a way that even a lummox like me can understand, and his level of service has remained consistently good over the last three years.”
Matt, Contractor Mortgage Customer from Southampton
“Adam’s advice on the different types of critical illness and life insurance were really useful. He also worked with us to decide the best combination of policies that would work with our existing policies to cover our needs. When doing this he happily tweaked quotes for us until we came out with an arrangement that was both affordable and would provide us with the level of cover we thought appropriate.”
Hannah and Steve, Protection Insurance Customers from Stamford
“Adam provided us with factual advice and also with options of which we were unaware. The advice on gifted equity was something we hadn’t heard about and this assisted us hugely to ensure repayments worked within our affordability. He provided us with a very personal service that made the journey from initial call, to mortgage offer and completion hassle free. We have already recommended Adam to someone and will continue to recommend his services in the future.”
Saul and Laura, Home Mover Mortgage Customers from Salisbury
“Mike and I collected the keys to our flat this weekend and we couldn’t be happier. It’s been a long time coming but we got there! We just wanted to say a MASSIVE thank you for everything you have done for us so far. We’ve really appreciated all the help, advice and reassurance you’ve given us all the way through this process. It’s really nice to have a friendly voice on the other end of the phone.”
Mike and Bethan, First Time Buyer Mortgage Customers from London
“Without question Adam found me a deal the estate agent’s broker couldn’t. He was very easy to contact whenever I needed him and he took time to explain the ins and outs of the Help to Buy equity loan scheme mortgage that he found me. I would rate him five out of five and will be back to use him when the time comes to remortgage or move.”
Chris, Help to Buy Mortgage Customer from Southampton