How Can I Get a Military Mortgage?

For those serving in the military, applying for a mortgage can be a daunting task. People serving in the armed forces often have hectic lifestyles and many believe that their situation is too complicated for lenders to fully comprehend. Fortunately, this is a misconception, and many mortgage lenders are happy to accept applications from military personnel.

Getting a mortgage while serving in the military has the same fundamentals as for other borrowers. The key difference is that your income structure, spending habits, and location changes can look unusual to mortgage lenders. This is especially true if you move frequently due to changes in your deployment or if you receive different military-related income streams.

In this article, we’ll explore the topic in detail to make sure you understand mortgages for soldiers, medics, technicians, or any other occupation in the armed forces. Let’s make a start so you can find the best mortgage for your circumstances in the military.

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Who Is Eligible for a Military Mortgage in the UK?

In most cases, your eligibility for a military mortgage follows the same criteria as any other secured loan. Mortgage lenders will assess your income, credit history, deposit, and affordability before making a lending decision.

Serving members of the Royal Navy, British Army, and Royal Air Force can usually apply for mortgage borrowing. Due to the large number of people working in the armed forces, most mortgage lenders are accustomed to receiving applications from military personnel. As a result, they have created internal processes to make their mortgage journey as smooth as possible.

In some cases, even reservists in the military can be accepted for a mortgage, despite being on part-time contracts. Veterans may also be eligible, provided they meet lending criteria.

When considering eligibility for mortgage lending, providers will normally request the following from military staff:

• Length of Service
• Basic Salary
• Other Regular Income
• Credit Commitments and Financial Conduct
• Deposit Size
• Address History

If you are unsure how to be eligible for a mortgage, improving your credit score, reducing unsecured debt, and building a larger deposit can improve your chances of being approved.

By speaking with a fee-free expert mortgage adviser from Boon Brokers, you can quickly find out if you are eligible for a military mortgage in the UK.

Are There Special Mortgages for Armed Forces Personnel?

No, there is not a standalone “military mortgage” product reserved exclusively for service members. In practice, most mortgages for army personnel and other service members are standard residential or buy-to-let products, assessed under normal lending criteria.

However, as some lenders will be more familiar with Armed Forces mortgage applications than others, your choice of lender can impact the speed of your application being approved. Certain British Army mortgages or wider Armed Forces applications may take into account regular allowances, overseas postings, or service accommodation when assessing affordability and address history. Due to these nuances, selecting a lender who is familiar with military mortgages may help the process run more smoothly.

It’s also common to ask: “does the army pay your mortgage?”. The short answer is no. Your mortgage will always be your responsibility, although schemes like the Forces Help to Buy (covered below) may support your application.

If you’re researching salvation army help with mortgages, this is typically unrelated to Army Forces mortgage products. The Salvation Army is a charity and does not provide specialist mortgage schemes for serving members of the military.

Can I Use the Forces Help to Buy Scheme for a Mortgage?

Yes, eligible service personnel can apply for the Armed Forces Help to Buy scheme to support a mortgage application. The scheme allows you to borrow an interest-free loan to contribute towards your deposit, legal fees, and other transaction costs. The scheme is repayable via future salary deductions.

Often referred to as a military help to buy or the military help to buy scheme, this support can reduce the amount of savings needed upfront. Although, it does not replace a mortgage itself. You still need to apply to a lender and meet their affordability and credit report criteria.

Using military help to buy a house can strengthen your application by increasing your deposit size. This can improve your Loan-to-Value ratio, which may reduce the rates available, depending on lender criteria. That being said, lenders will factor the Forces Help to Buy Scheme into your financial commitments when assessing your affordability, which may reduce the overall loan available.

How Much Deposit Do I Need for a Military Mortgage?

The deposit required for a military mortgage is usually the same as for other residential mortgages. Most lenders ask for a minimum of 5% of the property’s value. However, if you can put a larger deposit down, you may be able to access better interest rates and overall mortgage products.

If you are wondering how much is a deposit for a mortgage, the answer depends on the lender, your credit profile, and the property itself. If the lender deems your application as “higher-risk”, they may insist on a larger deposit sum before lending to you. For example, lenders may insist on a deposit of 20% or more of the property value for applicants with poor credit profiles, where their risk of default or missed payments is high. Or, if there is a risk that the property is of poor structure and may struggle to sell following a repossession, the same high deposit requirements may apply.

Some applicants ask, “can I get a mortgage without a deposit?”. In most cases, no. True zero-deposit mortgages are rare and subject to strict criteria. If you are researching how to get a mortgage with no deposit, you may need to consider alternatives. For example, family-assisted mortgages or the Forces Help to Buy scheme may quicken your timeline for saving a deposit and buying a property.

Do Mortgage Lenders Accept Military Allowances as Income?

Yes, many lenders accept military allowances as income, but it depends on the lender and the type of allowance.

When assessing affordability, most best military mortgage lenders will start with your basic salary. Many will also consider allowances, as long as they are regular or guaranteed. If they are consistently evidenced on payslips, such as your last three payslips, many lenders should be able to use it in their affordability calculations. Although, temporary or location-based payments may be disregarded.

If you are comparing the best mortgage lenders for military applicants, it’s important to understand that each lender has their own criteria. This is where the value of using a whole-of-market broker, like Boon Brokers, is really proven. Our team of mortgage experts can research the market to ensure you find the best lender for your situation in the armed forces.

If you receive a service pension, you may also ask: “does a military pension count as earned income? Many lenders will accept pension income, but it is usually assessed separately from employed income. For it to be acceptable, it must be sustainable over the long-term.

Does Being Posted Frequently Affect a Military Mortgage Application?

As postings are so frequent in the Armed Forces, mortgage lenders are generally aware. Frequent postings will not automatically stop you from getting a mortgage, but you should expect to provide more documentation to reassure the lender that you can meet your mortgage repayments.

Most borrowers will ask “how many years of address history are needed for a mortgage?”. The answer is typically three years. So if you have lived in several service accommodations or overseas bases, you will need to list each address clearly and in date order.

You will also need to provide address verification for a mortgage application. If you are currently residing for a long period of time in the military, this may include official military correspondence, council tax bills or bank statements to your service address.

A common question asked by military staff applying for a mortgage is: “does a job change affect my mortgage application?”. The answer is that moving between postings is not usually treated as a job change. This is because you are still technically employed by the Armed Forces. Although, changes to your income or contract type may need to be assessed as part of initial affordability checks.

What Credit Score Do I Need for a Military Mortgage?

There isn’t a single credit score number that guarantees mortgage approval. When people ask, what credit score do you need for a mortgage, the honest answer is that it varies from lender to lender.

Some lenders publish a minimum credit score for mortgage applications, but most use their own internal scoring systems. They usually draw credit data from at least one of Experian, Equifax or Transunion. It’s important to note that the score itself is not as important as the content of the credit file. For example, if someone has a high credit score but had a bankruptcy in the past, some mortgage lenders will still refuse their application.

If you have lived in service accommodation or moved frequently, it’s worth checking your credit report to ensure that all addresses are recorded correctly, as gaps may cause issues for lenders trying to match your credit data. Also, just as a tip, try to keep your address updated for any financial commitments. This is because military personnel are sadly prone to missing letters from lenders confirming outstanding payments due to their change in location. This should help you avoid late payments, which may later result in defaults or County Court Judgements that significantly harm your chances of being approved for a mortgage.

Do Veterans Get Any Mortgage Benefits

In the UK, there is no automatic discount or guaranteed approval for being a veteran. Mortgage applications are still assessed on affordability, credit history, income and deposit size.

When researching veterans mortgage benefits, it’s important to separate marketing language online from actual lending criteria. At this time, there are no lenders on the market offering exclusive mortgage deals or affordability enhancements to mortgage veterans.

At Boon Brokers, we have helped many clients who have served in the armed forces. Our expert broker team understands which lenders are likely to have a good knowledge of military mortgages, meaning we can progress your application quickly with your application.

Should I Use a Military Mortgage Broker?

You are not required to use a broker, but many service personnel choose to speak to a military mortgage advisor because of the additional complexity that surrounds life in the Armed Forces.

Frequent postings, allowances, overseas addresses, and Forces Help to Buy Loans can all raise questions during the underwriting process. A whole-of-market broker, like Boon Brokers, can explain how different lenders consider these factors. They can also help you understand which documents are likely to be requested at each stage of the mortgage journey.

Mortgage brokers can be particularly useful if you have many different income streams in the military. This is because there are likely to be large differences in the maximum loans available from lender to lender. Excusing the pun, navigating through the thousands of different mortgage options can be a minefield if you proceed without the assistance of a broker.

Crucially, a broker cannot guarantee a mortgage approval. Your application will always be subject to affordability and criteria checks, but they can steer you in the right direction to maximise your chances of getting an offer.

If you would like tailored guidance based on your circumstances in the military, contact Boon Brokers and let our team of expert brokers advise you further.