With so many mortgages on the market, you may have a lot of questions when you first start doing your research. It’s hard enough to find the time when you’re working 9 to 5 and it can be even tougher when you work in the Armed Forces.
If you’re looking for some clarity, a useful first step is to look at our Free Mortgage Advice Service. Our expert advisors are always on hand to offer guidance, whatever stage you’re at in the mortgage process. In the meantime, here’s a quick rundown of some of the questions they get asked most frequently.
Can Armed Forces personnel get a mortgage?
There’s no reason why servicemen and women shouldn’t be able to secure a mortgage. While your role in the Armed Forces may not be a ‘normal 9 to 5’ job, you can still access the same mortgage products open to civilians.
That said, one issue that tends to crop up is when you’ve been deployed overseas, leading to a gap in your credit and address history. This can have a negative impact on your credit score, one of the first things lenders look at. If you find yourself in a similar situation, it’s worth getting in touch with our Free Mortgage Advice Service, who can help you find the right lender.
I am not a customer at the moment, can Forces Mutual help?
Yes, absolutely! You don’t have to be a Forces Mutual customer to access our Free Mortgage Advice Service. It’s available to anyone in the Military family.
Who can Forces Mutual help?
Our specialist mortgage advice is available to people in the military – both serving and retired. This could include the serving Army, RAF, Royal Marines personnel, Royal Navy, Reserve forces, Retired and ex-forces, and their families, and support organisations.
Can I apply for Forces Help to Buy?
Forces Help to Buy is a popular scheme that allows Military personnel to borrow up to half of their annual salary to use as a deposit to buy a house, extend their current home or move to another property. The loan is capped at £25,000, is interest free and can be repaid over 10 years.
To apply for the Forces Help to Buy scheme, you need to:
- Be in regular service
- Have served for at least 2 years
- Have at least 6 months left to serve at the time of application
- In the last 12 months, have not owned a property within 50 miles of the proposed purchase (exceptions will apply)
Will my mortgage be with Forces Mutual?
No, Forces Mutual is not a mortgage lender, we are a broker. Our mortgage advisors provide whole of market advice to find the right deal for you and your circumstances. Like most brokers, we get paid by the mortgage lender when your mortgage is complete. But unlike some other brokers, we don’t charge you any fees on top – our advice is free.
Can I get a ‘guarantor mortgage’?
There’s actually no such thing as a ‘guarantor mortgage’ as such. However, what we do see a lot, particularly amongst first-time buyers, is people turning to their parents for financial support. Sometimes this could mean your parents contributing towards the deposit you need to put down. But it could also involve them acting as ‘guarantor’ on any mortgage you take out. This means that they would be responsible for making payments on your mortgage, if you were unable to. If you think you’ll need financial help from your parents when taking out your mortgage, it’s worth having a chat with our mortgage advisors.
What size of mortgage can I get?
The amount of money you can borrow depends on a number of factors, including your income, credit rating, how much of a deposit you can put down and the value of the property you wish to buy. Traditionally lenders would lend no more than four times your salary, however many have individual affordability calculators which will help you establish roughly how much you could borrow.
Do I have to have worked in the Military for a certain length of time before applying for a mortgage?
Broadly speaking, the longer you’ve been in your job the better, as far as mortgage lenders are concerned. Lenders require proof of your income before approving a mortgage application. They may ask to see up to 3 months’ worth of payslips. If you have been in your role for less time than that, you might need to provide other evidence to support your application. If you’re unsure where you stand, it’s worth getting some free advice from our mortgage experts.
Can I get a joint mortgage?
If you and your partner are looking to buy a home together, it makes sense to get a joint mortgage. The biggest advantage in doing so is that it could increase your buying power. This is because the amount of money you can borrow is based on your income (amongst other things). So, when considering your application, your mortgage lender will look at you and your partner’s combined salary.
How much of a deposit do I need?
The amount of deposit you will need to buy a home depends firstly on how much the property you wish to purchase is valued at. In the past, mortgage lenders might have only required a deposit of 5%, but in recent years it’s more common for you to need a deposit of 10% of the property value. It could be that this rises to 15% depending on how the economic situation unfolds.
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Mortgage Excellence Plc, trading as Forces Mutual, is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales No. 03527577. Registered office: Alexandra House, Queen Street, Lichfield, Staffordshire, WS13 6QS. For your security, all telephone calls are recorded and may be monitored.