Military Mortgages

Armed Forces – Where We Can Help

Our Mortgage Advisers can help with with the following:

• Entry level soldiers starting on low income bands and you have upcoming pay-rises that need to used for your mortgage
• Adverse credit rating due to being registered at different addresses
• Mortgages for those deployed overseas with a BFPO Address.
• A retiring Armed Services Personnel, with a new role and looking to relocate
• Buying a property on a residential to let-out when you are in tied-accommodation

At Home Group Financial we work with lenders and our Advisers fully understand the complexities of those working within Armed Forces sector including:

• Long Service Advance of Pay
• Forces Help to Buy
• Resident overseas but buying a home in UK
• Buying and renting out your residential property as you are living in tied accommodation

Our scope searching is an extensive panel of lenders from across the market meaning we have a wide range of options to find the most suitable mortgage for you.

How do military personnel get a mortgage when they’re living in service accommodation and don’t have a permanent address?

Your credit score is based on the address where you are registered for credit purposes. This is often a barracks or service address, which lenders will use to assess your application.

If you are registered at a parent’s or family member’s home while living in service accommodation, we can use that alternative address for credit scoring instead.

Additionally, some lenders offer tied accommodation mortgages (a type of mortgage used when your home is linked to your employment, meaning you live in a property provided as part of your job). This will allow you to take out a residential mortgage on a property and let it out, provided you are required to live in service accommodation for your work.

What income do lenders accept from armed forces personnel, including basic pay, X-Factor pay, and disturbance allowance?

Lenders will generally accept your full basic pay, X-Factor pay (an additional allowance received by members of the Armed Forces), and disturbance allowance when calculating how much you can borrow for a mortgage.

For basic pay, lenders will look at your most recent monthly pay or a confirmed upcoming pay rise. For additional income types, lenders may require a track record over several months or years to ensure it is a reliable source of income for your application.

Can serving military personnel use the Forces Help to Buy scheme to get on the property ladder

The Forces Help to Buy scheme provides an interest-free loan to assist with a deposit and other costs, such as solicitor fees and Stamp Duty. This makes it significantly easier for serving personnel to raise the capital needed to buy a home.

The scheme typically offers up to 50% of your salary, capped at a maximum of £25,000, which is usually repaid over ten years directly through your salary. Lenders will include this monthly repayment as a financial commitment when assessing your affordability. It is an excellent scheme that helps many military personnel get onto the property ladder.

If you’re deployed overseas, can you still apply for and manage a mortgage in the UK?

If you are deployed overseas but still have a British BFPO (British Forces Post Office) address, many lenders will manually review your application and credit profile. This is different from traditional UK automated credit scoring and allows you to manage a mortgage from abroad.

If you are living overseas without a UK postcode but intend to return to the UK in the future, there may be suitable residential expat mortgage options available. These can allow you to rent out the property until you are ready to return home.

A range of flexible mortgage solutions are available to support those serving overseas and looking to arrange finance in the UK.