Mortgages for Military personnel

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Mortgages for Military Personnel

The unique nature of life in the armed forces means that you need a mortgage advisor who can provide extra flexibility. Whether you are a seasoned property professional, or looking to buy your first home, we an advisee military personnel on the best mortgage products available to them and their unique circumstances.

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Mortgages for the Armed Forces

There are many reasons why those in the military may find it harder to get a mortgage. Prospect Tree Mortgages don’t see why a job in the armed forces should make it more of a challenge, so we are experts when it comes to:

applying for residential mortgages (even if you are due to be relocated)
applying for additional lending on your property if your circumstances have changed
find lenders who’ll consider your future employment, even after your mandatory retirement from the armed forces

Mortgages which suit you

If you are due to be relocated, and want to rent out your residential property, we will find you a lender who’ll consider giving you a ‘consent to let’ . This way, you can live in your property until you are relocated and then put tenants in your property whilst you are away. This will help you pay your mortgage and provide you with a passive income whilst you are not using the property.

Flexible advice

We understand that it may be difficult for you to get to the phone. So we will project manage you purchase or remortgage completely. We will deal with the solicitors and estate agents where necessary to keep moving the transaction forward.

What help is available for Military Personnel?

You may find that you are eligible for the forces Help to Buy scheme. This helps servicemen and women buy their own property.

The Forces Help to Buy scheme could be available to you for:

Assistance towards purchase price taking account of deposit, legal, surveyors and land registration fees.
Eligibility: First- Time Buyers and those wanting/needing to move to another property due to posting or extenuating family or medical circumstances. Medical circumstances allow current property to be extended or modified.
Restrictions: Not for purchase of Buy – to – Let property or second property. Not for personnel who have given notice and have 6 months or less to serve.
Ensure mortgage Lender is aware you will use FHtB before making a formal mortgage application (as some don’t recognise the scheme).

What is the Forces Help to Buy Scheme?

Advance of 50% gross annual salary capped at £25,000
Interest free – although HMRC consider an amount above £10,000 as a beneficial loan which has personal tax implications.
Repayable over 10 years or shorter by agreement or recoverable from pay.
Compatible with other Government schemes (Help to Buy Equity Loan, Shared Ownership and Hep to Buy (Scotland).

You can find out more on the Government website

Which mortgages are best for the military?

The ‘best’ mortgage will be from the lender who’s criteria best suits your individual needs. Once we have helped you identify the lenders who will lend you the money you need, we will help you find the best rates available to you.

Fixed Rate Products – these types of mortgages work if you want your repayments to remain the same for your initial fixed period. If rates go down, you will need to wait until your fixed rate ends before you can benefit (unless you pay a penalty). Whereas, if rates rise, your repayments will stay the same until your fixed rate ends.

Variable Rate Products – these types of products are more flexible and often don’t have ERCs (Early Repayment Charges) if you want to repay the early. The downside is that your monthly repayments will fluctuate throughout your mortgage.

If the Bank of England base rate changes, then you will likely see your repayments change with it.

Where to start?

Whether you are just beginning your journey, or have already found a property you are interested in. We encourage you to get in touch. Once you have had a brief chat with one of our independent mortgage experts, we will start research right away and help you find the best mortgage products available to you and your unique circumstances.

Book in below, or visit our contact page to find another way to get in touch.