Mortgages for Army Personnel: Overcome Challenges with Expert Guidance
As a member of the army, your career often takes you across different locations, sometimes even abroad, presenting unique financial challenges, particularly when it comes to securing a mortgage.
The nature of military life, with frequent relocations, deployments, and fluctuating income sources, can sometimes make the mortgage process feel more complicated than it needs to be.
At Kerr & Watson, we understand the specific needs of army personnel and are here to help you through the mortgage process, whether you’re looking to buy your first home, remortgage, or explore other property options.
Can Army Personnel Get a Mortgage?
Yes, army personnel can absolutely secure a mortgage. However, it’s important to be aware that the unique nature of your job can sometimes make the process more complex than for civilians. Lenders are often wary of the inconsistencies that come with military life, such as frequent moves or periods of being stationed overseas, which can affect credit history or income documentation.
The good news is that there are lenders that offer more flexible options for army personnel, especially when it comes to considering non-traditional income sources like allowances and bonuses.
Working with a mortgage broker, like Kerr & Watson, can help you find the right lender who understands your unique circumstances and can offer you the right deal.
Challenges Faced by Army Personnel in Securing a Mortgage
Here are some common challenges that army personnel may face when applying for a mortgage:
Frequent Relocations
As a serving member of the army, you may be required to move frequently, sometimes even overseas. This can result in a lack of a permanent address, making it harder to maintain a consistent credit history.
Irregular Income Streams
Many army personnel receive a significant portion of their income through allowances, such as a combat bonus or living overseas allowance. Some lenders may not traditionally accept these forms of income, which can make it challenging to meet affordability criteria.
Overseas Deployments
If you’re deployed abroad during the mortgage application process, it can slow things down, especially if your lender requires documents that may be hard to access from overseas.
Credit Rating Impact
Frequent moves, changes in employment status, or missing documentation due to deployments can sometimes negatively affect your credit rating, which may make it harder to secure favourable mortgage terms.
At Kerr & Watson, we work with military personnel and have the experience to help you overcome these challenges. We can guide you through the application process, ensuring that your income, allowances, and unique financial situation are presented to lenders in the best possible light.
Understanding the Forces Help to Buy Scheme
One of the key schemes available to army personnel is the Forces Help to Buy Scheme, which is designed to assist members of the armed forces in purchasing their first home or moving to a new property due to a change in posting.
What Is the Forces Help to Buy Scheme?
The Forces Help to Buy scheme allows army personnel to borrow up to 50% of their salary, with a maximum loan of £25,000 (in October 2024, subject to change), interest-free.
The loan can be used towards a deposit or to cover other costs like solicitor fees and stamp duty. The repayment period for this loan is up to 10 years or when you leave the forces, whichever comes first.
Eligibility for the Scheme
To qualify for the Forces Help to Buy scheme, you must:
- Be a member of the army (or other armed forces)
- Have completed the required length of service
- Have at least six months remaining on your contract
- Meet certain medical criteria
- Be purchasing your first home or a new home due to relocation
This scheme is a fantastic opportunity for army personnel looking to get on the property ladder or move to a new home, and at Kerr & Watson, we can help you determine whether this is the right option for you and guide you through the application process.
Benefits of Using Kerr & Watson for Your Mortgage Needs
At Kerr & Watson, we are dedicated to supporting army personnel with personalised mortgage advice and services. Here’s how we can help you:
- Specialised Knowledge: We understand the specific financial challenges that come with military life and can connect you with lenders who are experienced in working with army personnel.
- Access to a Wide Range of Lenders: We have access to both high-street and specialist lenders who understand military income and allowances. This ensures you have the best chance of securing a competitive mortgage offer.
- Personalised Advice: Every army personnel’s situation is different. Whether you’re stationed overseas or facing challenges due to frequent moves, we provide tailored advice to suit your unique circumstances.
- Simplified Process: Applying for a mortgage can be complex, especially for army personnel with irregular income streams. We handle the paperwork, liaise with lenders, and keep the process moving so you can focus on your duties without the added stress of navigating the mortgage market alone.
Conclusion
Getting a mortgage as a member of the army may come with its own set of challenges, but it is certainly achievable with the right support and guidance.
At Kerr & Watson, we are committed to helping army personnel secure the right mortgage for their unique circumstances.
Whether you’re buying your first home, buying a buy to let, or looking to move due to a new posting, our team of experts is here to provide you with tailored advice and access to the best mortgage deals for you.
