Purchasing a new home is one of the biggest financial commitments you can ever make. Unfortunately it’s not as easy for some as others to have this option. If you have a career in the forces then sadly it could be a little harder to buy your home. This is where military mortgages can help and this is one area the team here at Mortgage Squared have experience in. In fact part of the reason we started helping with military mortgages is because some members of the team and founders of the business served in the forces and had trouble buying their own home, so we have direct experience in what you are experiencing.
You may find you are being penalised through no fault of your own when it comes to applying for this product. If you move a lot and your address changes often this can hamper your credit rating. Also if you work overseas then this too plays a part in any application. Being stationed abroad is part and parcel of this type of career and but it should not mean you lose out as a result. Mainstream lenders may not see you as a viable candidate through no fault of your own.
Are You Eligible?
To begin with let’s discuss if you are eligible for military mortgages. There are certain criteria you need to meet including:
- Be in regular service
- Accepted onto trained strength
- Army and RAF completed 2 years service
- Have 6 months service left at least
- Not owned a property in the past 12 months within 50 miles of the new property
There are some exceptions to the rules above and indeed all cases are unique so don’t think if you do not satisfy all of the above you can’t be accepted, you could still apply and be accepted.
How Much Can You Borrow?
When it comes to military mortgages you are able to borrow up to 50% of your salary. This is up to a maximum of £25,000. Now what this does is mean you have a healthy deposit to put down on a new property and in turn this means you open yourself up to more lenders and more schemes for military mortgages.
We offer helpful guides and can advise on protection, stamp duty and we even have financial calculators so you can work out what you can afford, what your repayments would be and all other vital info you need to make a decision when looking to buy a new home.
If you serve your country then you could be finding it hard to get on the property ladder, which is where we can help. We work with a large panel of lenders who can all help you. We can guide you through every step and offer impartial advice on military mortgages. Did you know you could also use the help to buy scheme too with this product to get even more help when looking to buy your next home. See our handy help for first time buyers guide here:
How do you apply?
Applying for military mortgages is simple. You go through the JPA (Joint Personnel Administration) system and you can seek help via your chain of command and staff and personal support detachment. We can also offer help and advice to get you started too and have years of experience with this type of product. We can also help with the generic mortgage side too so when you hopefully have your deposit you can then start looking but we make sure you have your offer in place so you can relax and give your attention to the important part of finding the right new home for you and your family.
When Do I have To Repay It?
When you take out military mortgages the money needs to be paid back before you leave your role or within 10 years, which ever comes first. There is an option to remortgage your property at a later date to repay the debt or pay off the debt when you receive your lump sum payment when leaving the forces and your role.
Military mortgages are unique in that you are allowed to do any of the following which normal mortgages don’t allow usually.
- Rent your property out
- Be stationed abroad
- The property can be unoccupied for long periods
- You can purchase overseas property
Part and parcel of your role is probably travelling, a lot. This can be overseas too so you never really settle or have one permanent address. This is the reason many mainstream lenders won’t lend to you and which is why military mortgages can help. Speak to a member of the team here at Mortgage Squared today and get free and impartial advice on how to start your military mortgages application.