FEE FREE Armed Forces Mortgage Brokers & Advisors
Finding a mortgages as military personnel that it is right for you can be tough, there are hundreds of different ones to choose from.
It doesn’t matter if you’re currently serving an Armed Forces personnel or Veteran; if you are looking for a mortgage for your first ever home or a remortgage for an existing property, Alexander Southwell Mortgage Services will be able to find the mortgage right for your needs.
A military career is challenging and demanding, and many mortgage companies recognise the importance of your work. As a result, you can often find special deals for Forces personnel.
What is a Military Mortgage?
There are no mortgage products specifically for the military, but lenders are increasingly welcoming people in the armed forces. They recognise some of the challenges of a military lifestyle, such as postings at short notice and living abroad.
Some military personnel can find it tricky to get a mortgage.
Not least because moving around frequently can give you a poor credit rating.
A lot of the mortgage market also accepts forces help to buy, this might be a big help which is definitely worth considering.
Finding you the right mortgage for your needs – Armed Forces personnel
Mortgage lenders who understand the military lifestyle will allow for the differences between your situation and the average homeowner taking out a standard residential mortgage.
Some Mortgage lenders provide additional mortgage features designed for the military. These can include:
- Your property is unoccupied for certain periods of time
- Allowing you to buy in the UK while stationed overseas
- The ability to rent out your property on a standard mortgage while you’re stationed elsewhere. This would normally require a Buy to Let mortgage.
Our mortgage experts will be able to help you if you are one of the following:
- First time buyer mortgages
- Home mover mortgages
- Remortgages
- Immediate consent to let
- Buy to let mortgages
- Force Help To Buy
- Government Help To Buy Equity Loan
What is the Forces Help To Buy (FHTB) scheme?
With the Forces Help to Buy Scheme you can borrow up to 50% of your salary and use it as a deposit to buy a home, interest-free.
The forces help to buy scheme is not just available for mortgages for soldiers, the scheme is open to any member of the military that has served for a minimum length of service, has more than six months left on their contract, and meets certain medical requirements.
You could borrow up to a maximum of £25,000, which can cover both a deposit and other home-buying costs. The loan is repayable at the point when you leave the forces or at the end of 10 years, whichever comes soonest.
When you only have a few months left to serve, you could choose to remortgage to repay the debt. Alternatively, you can repay the forces help to buy loan slowly over the 10-year term, these payments will come straight out at the source of your income.
The monies can be used towards a deposit and other costs such as solicitor’s and estate agent’s fees. The loan, however cannot be used for the purchase of a second home or a buy to let property. More information is available on the Government website.
Am I eligible for the FHTB scheme?
This scheme is available if you have completed the required length of service and have more than 6 months service remaining at the point of application. Speak to your Bank or a specialist mortgage advisor to discuss your eligibility.
Can you use Forces Help to Buy with Shared Ownership? Or Any other scheme?
The Forces help to buy scheme can’t be used with Shared Ownership but it can be used with the Government help to buy scheme.
However with the amount you can get from the Forces help to buy scheme you should be able to do a standard mortgage like any other mortgages for armed forces.
Armed Forces Mortgage Broker – Government help to buy equity loan
So what is the government equity loan scheme?
The equity loan scheme is much different to the forces help to buy scheme.
The help to buy scheme changes from 1st April 2021. This Help to Buy scheme offers an equity loan where the government lends first-time buyers in England money to buy a newly-built home.
This must be used to buy your main residence and can’t be used to buy a second home or a buy-to-let property.
The help to buy scheme offers an equity loan where the government either lends up to 20% or 40% (For help to buy London) of the property to first time buyers or homeowners to purchase a newly built home.
How it works:
- You need at least 5% of the sale price of your new build property for the deposit. You can input a larger amount if you would like to.
- The government lends you up 20% of the sale price
- You borrow the rest from the mortgage lender for the remaining 75%
- The loan will run for a maximum of 25 years
- You don’t pay any interest or fees on the government equity loan for the first five years, in the sixth year you will be charged 1.75%
PLEASE NOTE: THIS SCHEME WILL NO LONGER BE AVAILABLE AFTER 31/10/2022
Poor credit rating mortgages – Forces Personnel
If you have or have had adverse credit it can always be a struggle getting a mortgage agreed, regardless of whether you are in the forces or not.
Luckily, there are still lenders out there that consider applicants with adverse credit and consider each mortgage on a case by case basis, avoiding awkward and frustrating scenarios.
It really depends on how your credit file looks, how recent and severe the issues were, and how much deposit/equity you’ll have with your new mortgage. To access you credit file, click here.
At Alexander Southwell, we recommend Check My File for your credit report. Their reports show information from four credit reference agencies, whereas others may only show information from one or two.
Their reports give you and us a full picture of how lenders are likely to assess your application.
In order to obtain your report, click on the above link to get a 30 day free trial with CheckMyFile and download your report, after the free 30 day trial they will charge £14.99 per month & this subscription can be cancelled anytime. CLICK HERE TO ACCESS YOUR FILE.
Life Cover – Armed Forces Mortgage Broker
Having suitable insurance is important in all walks of life but in the military it’s essential. We can provide tailor made cover to keep you and your family safe, whatever life throws at you.
Life Cover
Cash lump sum to your family, cover to repay your mortgage or to protect your children’s future.
- Cover as soon as you apply
- 3 levels of cover – Level Term, Indexed, or Decreasing Term
- Cover against all standard war risks
Serious Illness Cover
Cash lump sum on diagnosis of one of the 166 covered conditions, even if you live to 100.
- Less severe conditions are covered
- Ability to claim more than once
- Early stage cancers, heart attacks and strokes are covered
Military Insurance
Specialist cover for the Armed Forces. Whether you’re looking for cover adventurous activities, or personal cover for your military kit or contents, Alexander Southwell can arrange cover for a range of military personnel.
How to get the competitive rates on mortgage military loans
Although there are schemes such as Forces Help to Buy in place when it comes to army, navy or RAF mortgages, the rates offered are no different to civilian rates.
The same factors that are taken into consideration with a civilian application will affect your own military application.
This includes your age, your income, your outgoings, your credit rating, your deposit and the property type.
In some cases, you may be able to get a favourable deal but in order to do this effectively, you need to seek advice from professionals when it comes to armed forces mortgages.
Fee Free Mortgage Advice – Ex Military Advisors
Finding a mortgage that it is right for you can be tough, there are hundreds of different ones to choose from.
It doesn’t matter if you’re currently serving in our Armed Forces or Veteran; if you are looking for a mortgage for your first ever home or a remortgage for an existing property, Armed Forces Financial Services will be able to find the mortgage right for your needs.
What if I am deployed?
If you become deployed during the mortgage application process, we will continue to take action on your behalf and ensure the progress of your mortgage application. Throughout the process, we will collaborate with you to gather and submit all the necessary documentation.
If deployment comes up once you own the property, you will have a few options. You can choose for your family to stay in the property during your tour, or leave the property empty while you’re away. You could also talk to your lender about letting it out, with the rent covering your mortgage payments.
How can your Mortgage Broker help?
The military mortgage market is very specialist, so it’s important to seek advice.
Our mortgage advisors at Alexander Southwell have a lot of experience in helping members of the armed forces buy a home.
We seek out the lenders offering military mortgages and compare all the rates and costs on your behalf.
Our Team will support you through the application process and beyond – chasing up the lender, solicitors, and estate agents to drive your mortgage through to completion
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
