Military Mortgage Application Process
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.
“I served throughout the 80s and spent the last six years going out to the BATUS (British Army Training Unit Suffield), BATUK (British Army Training Unit Kenya), BFC (Cyprus) and BFG (Germany), while we were out there delivering financial education briefings to the officers and serving personnel.”
Mortgage Adviser For The Military
We take a look at the Military Mortgage Application Process from start to finish including, how we can help you along the way, listen to the podcast episode below.
Military Mortgage Application Process
What is a Military Mortgage?
The term military mortgage is used quite often, but there is no specific mortgage out there that’s geared just to the Armed Forces.
What we mean by a military mortgage is, for example, if you look at the marketplace as a whole of market Mortgage Broker, we have access to nearly 12,000 mortgage schemes. Some of these lenders will look more favorably on the military because they are transient and serve overseas frequently. Therefore, we gear our mortgages to those specific lenders.
How do you apply for a Military Mortgage?
1. The first step is to contact us, fill out a form and we will get a hold of you. If you’re overseas, we can use WhatsApp or Skype to communicate.
We will establish comms with you, discuss what your requirements are, and start to give you advice on where to go. As an independent Mortgage Broker, we do all the work for you.
2. We will conduct a financial review with you. This will discuss your circumstances, your income, your expenditure, any past credit problems, employment details, and how long you’ve got to serve.
We can do this over the phone or we can email you a link to a secure client portal. If you’re overseas, you can click on that link, complete it securely in your own time, and it bounces back to us when you’ve completed it.
3. We will search that marketplace to establish what we believe is the best deal for you, and provide you with written illustrations. These are created as PDF files to enable you to read them in your own time.
We will go through all the documentation with you step-by-step. We’re always here to answer any questions that you might have before we start the process of going forward with a mortgage.
What mortgage assistance is available for military personnel in terms of fees?
When we look at fees, this very much depends on the lender you’re going to and the type of mortgage scheme that you’ve chosen.
Some lenders will charge a fee for the mortgage to get the keenest interest rates. often these can be added to the loan. If you’re buying a property, you’ve got to think about solicitors fees that will be charged.
These are usually charged on completion of the mortgage but solicitors might charge you up to about £300 in advance, to pay for disbursement. For example, the registry searches that they will do. These are usually instructed at outset as they are currently taking up to 6 weeks to be returned.
There is a stamp duty freeze at the moment, which is a land tax paid to HMRC until March 31st. After that day, you might end up paying stamp duty depending on the purchase price of the property.
Normally brokers that offer a full independent whole of market service as opposed to just being tied to one or two lenders, will charge you a broker fee for arranging it.
Sometimes they will charge you half of that when they apply for the mortgage and then the other half when it’s been completed. The fees will depend on each client’s circumstances but don’t expect to pay any more than £500.
We are here every step of the way:
As previously stated, your broker provides you with full paperwork, a full mortgage quote, or an illustration. This outlines every fee you will need to pay, from solicitors fees, and stamp duties to lenders fees, and broker fees.
You will see this documentation ahead of applying, to ensure you are fully happy and informed before you proceed.
What if I’m deployed?
There are two parts to this question:
1. You’re currently deployed when you apply for the mortgage
In this case, we’ve got different ways in which we can communicate with you while you’re overseas, via the methods mentioned previously.
2. You get a mortgage and then you’re deployed. Not only deployed on an operational tour but more likely posted.
In this case, you can apply through a lender for a Permission to Let. This means the lender will let you, let the property out, knowing that’s still your home. This is while you are working overseas but you can reoccupy the house once you are back.
Your lender won’t make any charges for you because you’re in the forces. Whereas civilians have to pay the lenders extra interest rates, and convert their mortgage to a Buy to Let or pay a fee for this. Generally, in the military, you get this free of charge from your lender.
Is it important for me to register on the electoral roll, even though I registered to vote by post?
Yes definitely. The importance of registering on the electoral roll hasn’t always been mentioned at briefings before being deployed at DACs and RACs or at annual G1 Financial briefings.
What happens is, when we serve, we sign up for a postal vote. This enables us to vote in any UK election, but it doesn’t help towards your credit score. Everyone where possible should ensure they are registered on the electoral roll at a given location.
For PAD’S, the process if you are in a UK SFA address is simple, but Singlies, we advise that if you’re not able to register on camp, instead register at your parent’s address. This way, you’re starting to build a credit profile. It will be much easier to negotiate with lenders, and saves you time in the long run.
Closing down accounts:
One of the biggest problems we have with people that are posted all over is that they don’t close down their accounts before they leave. For example, something as simple as a mobile phone communication bill, that gets posted out to your address.
You’ve moved overseas, and you haven’t paid your mobile phone bill. These companies will then chase you and they will take it to court. They will issue what’s called a ‘default’ because you’ve defaulted the credit agreement. The case might even go to a county court judgment, and at this stage, we are stuck.
We’ve worked with so many people that haven’t been aware of their bad credit ratings. We can help bad credit ratings, but you won’t be able to get a 90% mortgage, which is what most people are looking for when they first get on the housing ladder.
Tip: Always ensure when you’re posted, you close down or notify all your credit agreements of your new postal address, because it won’t just disappear.
How can a Mortgage Broker help?
We take the pressure away from you. Having served in the forces, our team knows what you’re going through. We’re able to take you by the hand and lead you right through the buying process.
We can help appoint solicitors that are forces friendly. Those who are used to dealing with the Forces Help to Buy money and drawing receiving that from the MOD. We can put everything in place, and deal with estate agents that are chasing you for your mortgage, etc.
Everything will be passed on to us first so that you can get on with your daily routine at work and have just one point of contact.
If you have any doubt, please get in touch:
You might not be ready to buy now, but if you have got any queries about the application stage, please fill out an inquiry form and we’ll have an informal chat over a brew in the cookhouse, mess or NAAFI (if you are local to us), once lockdown is lifted. In the meantime we can chat virtually.