Mortgages for Armed Forces: How Military Personnel Can Get Approved
Life in the military can be unpredictable. From frequent relocations to overseas deployments, your lifestyle is anything but typical and that can make getting a mortgage feel more complicated than it should be.
But that doesn’t mean the mortgage process needs to be overwhelming to you. If you meet lender criteria, with the right advice and a clear understanding of your options, you can absolutely secure a mortgage that fits your circumstances.
At Kerr & Watson, we help service personnel and their families navigate the mortgage process with confidence.
What is a Military Mortgage?
Despite what you might have heard, there’s no official product called a “military mortgage.” It’s more a catch-all term used to describe mortgages that are either more accessible or better suited to those in the armed forces.
Many mainstream lenders now recognise the challenges faced by military personnel whether this is Army, NAvy or RAF, from gaps in address history to income made up of various allowances and some are more flexible in how they assess your application.
On top of that, there are lenders and government schemes available that specifically support military buyers.
That’s where the right mortgage broker comes in. At Kerr & Watson, we explore which lenders are most likely to say yes based on your individual situation.
Common Challenges Faced by Military Personnel
You may already know that military life can create a few bumps in the road when it comes to applying for a mortgage. Here are some of the most common hurdles and how we help you tackle them.
Frequent relocations
Constant moves can make it harder to build a solid credit history or maintain a consistent address. Some lenders may see this as a red flag which can cause credit scoring to fail when running the info through their system, but we work with providers who understand that this is part of service life.
Overseas postings
If you’re currently stationed abroad, it can make the mortgage process more difficult with some lenders. We help military personnel apply while in this position, when they meet criteria with the lender.
Complex income
Your income might include allowances like the Living Overseas Allowance or Operational Bonus. Some lenders ignore these, but others will consider the full picture.
Consent to let
If you need to rent out your property while you’re deployed, this can complicate things with a standard mortgage.
However, we know which lenders are happy to consider consent to let in your terms. If you are living in military accommodation, some lenders can allow you to rent your property out from the moment it completes, if you are meeting the remainder of their criteria.
What Help is Available?
Several support schemes and flexible lending criteria have been created to help military personnel get on the property ladder.
Forces Help to Buy Scheme
The Forces Help to Buy scheme (currently at the time of writing in 2025) allows eligible service members to borrow up to £25,000 interest-free to help with a house deposit or other buying costs like solicitor fees and stamp duty. You can apply through the Joint Personnel Administration (JPA) system, and the process is typically straightforward.
To be eligible, you need to:
- Be in the Army, Navy, or RAF
- Have served the required length of time
- Be buying your first home or relocating due to a new posting
- Have at least six months of service remaining
- Meet the required medical standards
Although the scheme was once temporary, it’s currently available and widely accepted by lenders. We can advise on how best to use it in combination with other schemes or deposit funds as not all lenders accommodate the schemes.
Other Property Schemes
Depending on your situation, you might also be eligible for:
- Shared Ownership – buy a percentage of a property and pay rent on the rest
- Right to Buy – purchase your military accommodation if eligible
Some of these schemes can be combined, but not all lenders accept this. That’s why it’s worth speaking to a specialist adviser who knows how to structure the right application for you.
What Lenders Look For
You don’t need to be an expert in lender criteria, that’s our job. We carry out a full factfind to understand your full situation, but it can help to understand what they’ll consider when assessing your mortgage application.
Deposit amount
The more deposit you have, the better your interest rate is likely to be. Using the Forces Help to Buy loan can give you a meaningful head start.
Income and allowances
Many lenders now take military allowances into account when calculating how much you can borrow. We’ll make sure your income is presented properly to get the best result.
Credit history
If your credit score has taken a hit due to frequent moves or overseas service, this does not necessarily exclude you from borrowing what you need. Some lenders will take this into consideration, and we’ll guide you to the ones who are most likely to help, once we know your full situation.
Age and mortgage term
Most lenders want to see that your mortgage will be paid off by retirement, but there are options for older buyers or those with shorter service time left. They may need to know your plans post-retirement from the military.
Property type
If you’re buying something non-standard, like a flat above a shop or an ex-local authority home, this can limit your options. We’ll help you find a lender who can consider your chosen property.
Getting a Mortgage While Stationed Abroad
Being based overseas doesn’t mean you can’t buy a property back home. While some lenders may be cautious, there are others that specialise in working with armed forces personnel abroad. You’ll likely need to provide additional documentation, but we’ll walk you through what’s required.
You may also want to let out the property while you’re away. Some lenders will include consent to let as part of their terms if they know you’re military.
Ex-Military Mortgage Options
If you’ve left the armed forces, you’re no longer eligible for schemes like Forces Help to Buy, but that doesn’t mean your options are completely limited.
At Kerr & Watson, we’ll assess your situation and match you with lenders who are open to helping veterans buy a home depending on the income you now receive, whether from your military pension or from another job that you now do, since leaving the service.
What You Can Do Now
If you’re thinking about taking a mortgage, here’s how to get started:
- Speak to us early – Knowing your borrowing potential before you start house hunting can save you time and stress. We’ll help you secure an Agreement in Principle so you can move quickly when you find the right property.
- Get your documents ready – You’ll typically need your ID, proof of income (payslips or allowance documentation), bank statements, and address history. We’ll let you know exactly what’s needed based on your situation and the lender that is recommended.
- Get tailored advice – Rather than going straight to a bank, talk to a broker who understands military mortgage options, bespoke to you. At Kerr & Watson, we give this kind of advice to help you to avoid unnecessary knock-backs or delays.
Conclusion
At Kerr & Watson, we’re proud to support those who serve. Our tailored mortgage and protection advice helps you make informed choices, avoid costly mistakes, and secure the home you deserve.
Get in touch with Kerr & Watson today for expert, personalised advice on mortgages and insurance.
