How to Get a Mortgage if You are in the Armed Forces
If you're one of the UK's 140 000 Armed Forces personnel then you'll probably know that getting a forces mortgage isn't always simple. Having no permanent address and being abroad for significant amounts of time can all have a real impact when it comes to being accepted.
So what should you do?
Find Out What Help is Available
The good news is, there are a number of options available to help forces personnel when it comes to buying a house. A couple of examples are:.
Long Service Advance of Pay (LSAP)
This is available to all serving military personnel who have served for four years or more. It's an interest free loan of up to £8500 for those wishing to buy a property in the UK.
Forces Help to Buy (FHTB)
This £200 million scheme helps forces personnel to get on the property ladder. Service men and women can borrow up to 50% of their annual income (up to a maximum of £25k) interest free to either buy their first property or to move to another property on assignment.
Am I Eligible?
You are eligible if:
- You still have at least 6 months left to serve
- You've completed a minimum length of service
- You meet the required medical standards
There may be other requirements depending on your circumstances so it's a good idea to seek advice from your chain of command or through your personnel agency.
Specialist Mortgage Lenders
There are specialist lenders out there who will offer mortgages to forces personnel. For example, there are some lenders, that will allow you to buy a house with a 5% deposit and then let it out. normally to let the house out you need a 25% deposit.
It can be well worth seeking a more specialist mortgage like this because you'll generally be better off.
Check Your Credit Report
It's a good idea to check your credit report before you apply for a mortgage. This way you can see in advance if there's anything on there that could impact your application.
There are 3 main Credit Reference Agencies in the UK and it's a good idea to view your report with each of them as there may be some differences.
TransUnion (formerly Call Credit)
For help with improving your credit score, check out our recent blog post: 5 Ways to Improve Your Credit Score
Speak to an Expert
Getting a mortgage can feel complicated and overwhelming at the best of times, but especially so when you're in the forces. Here at BB, we've helped hundreds of forces personnel to find the right mortgage - and to get full advantage of all the help that's available to them.
If you'd be interested in booking a friendly chat with one of our experts to discuss what options are available to you, then pop your details below and we'll get in contact.
go back to all blogs