As Ex Forces Veterans we understand better than anyone the need to secure a home before your career ends and you have to move out of your SFA.
What is a Military Mortgage?
There are specialist lenders out there who cater specifically towards members of the Armed Forces. As a member of the Armed Forces, there are going to be periods of time where your residential property is unoccupied, or you may be stationed overseas wanting to let it out.
There are mortgages out there no matter what your situation, it is just knowing about where to look. It could be worth getting in touch with a mortgage adviser to point you in the right direction for your situation.
Lenders are beginning to become more flexible to how you apply and the terms of their mortgages. You can apply for extra borrowing, apply on residential terms even if you are overseas and borrow up to the date you intend to stop working.
What Mortgage Assistance is Available for Military Personnel?
It is important to seek advice from a professional to help guide you the most suitable mortgage for your money. You should find a mortgage broker to make sure you are making the right decision for your financial situation or if you are not sure which mortgage to pick.
There are other schemes such as the Forces Help to Buy Scheme for military personnel, which runs until 31st December 2022 which can help you onto the property ladder.
What is the Forces Help to Buy Scheme?
The Forces Help to Buy scheme is an interest free loan that helps to cover a house deposit as well as any other fees that occur whilst buying a home. Military personnel can borrow up to 50% of their annual salary interest free, as long as it is a maximum of £25,000. This money could be used towards the deposit or fees.
The Forces Help to Buy Scheme only covers those looking for their first property, those moving due to a new assignment or those who have had a change in family circumstances.
Can Everyone Apply to the Forces Help to Buy Scheme?
You need to be military personnel to apply for the Forces Help to Buy Scheme, obviously.
You need to make sure you have completed a certain amount of service, have more than six months left to serve at the time you apply and meet the right medical categories. There are some instances where exceptions can be made but these must be justifiable reasons and usually are medical or personal reasons.
You can apply for the loan through JPA (Joint Personnel Administration System) and can seek application through their Chain of Command and personnel office.
How Can I Improve my Chances of Acceptance?
You need to make sure that you have a good credit rating, if you have a poor credit rating it will greatly affect the rates that you can access as well as how much you can borrow. As a first-time buyer you need to make sure that you have all your finances in check to take that first step on to the property ladder.
You should seek mortgage advice to know how to improve your chances for your specific situation and find an appointed representative to find the right mortgage deals and mortgage rate for you.
What if I am Deployed?
If you are deployed, you can apply for a consent to let where you will be able to rent out your main residential property to paying tenants on your existing mortgage. You can do this without having to apply to change your mortgage to a buy to let mortgage.
You can approach your lender and ask for a consent to let period and they will either agree or disagree depending on the situation. You must make the monthly repayments on your mortgage or your home may end up repossessed.
How can a Mortgage Broker help?
A mortgage broker can help advise on the right option for your situation and tailor the lenders to you. There are a lot of different lenders and mortgage products out there and a broker knows the whole of the market well; meaning that they can take the stress out of the search.
Brokers will help you with gathering your documentation and making sure you have a strong application before approaching a mortgage lender. They have access to lender exclusive deals too and can often access lower interest rates. Brokers are authorised and regulated by the Financial Conduct Authority too and are qualified to give you the advice that you need.
As a serving member of HM Forces your situation can be unique and you may have specific requirements from your mortgage to ensure you are comfortable financially. A mortgage broker can listen to your needs and find the right product for you and make sure you understand your commitments along the way.