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Being in the military comes with unique challenges and opportunities, and one of the big decisions you might face is whether to buy a home. If you’re currently living in Army accommodation, you may be wondering: Do I need to buy a house now? Can I even get a mortgage with my lifestyle? What happens if I get posted elsewhere?
The good news is that many military personnel successfully buy homes while serving, and there are tailored options to make it easier for you. At Verve Financial, we’ve helped many members of the Armed Forces navigate the mortgage process, so here’s what you need to know.
Why Consider Buying a Home While in the Military?
If you’re already living in Army accommodation, buying a house may not feel urgent. However, there are a few reasons why it could be worth considering:
1. Building Long-Term Security
Buying a home allows you to invest in your future. Every mortgage payment builds equity in your property, which could become a valuable asset later in life.
2. A Place to Call Your Own
Even if you’re posted elsewhere, having a home base can provide stability for your family or a place to return to after your service.
3. Renting Out Your Property
If you’re deployed or posted to another location, you can rent out your home and generate additional income. Many military members become “accidental landlords” this way.
4. Taking Advantage of Tailored Schemes
There are specific mortgage schemes and support systems designed to help members of the Armed Forces buy their own home, which we’ll cover below.
Mortgage Options for Military Personnel
Here are the key options and schemes available to help you get on the property ladder:
1. The Forces Help to Buy (FHTB) Scheme
One of the biggest advantages for military personnel is the Forces Help to Buy scheme. This government initiative allows you to borrow up to 50% of your salary (up to £25,000) interest-free to use as a deposit.
- How It Works:
- The loan is interest-free and repayable over 10 years.
- It can be used for a deposit or other costs, such as solicitors’ fees.
- Eligibility:
- You must have at least six months of service remaining.
- Available to regular Armed Forces personnel (including Navy, Army, and RAF).
2. Armed Forces-Friendly Lenders
Some mortgage lenders are more flexible and understanding of military careers. They may:
- Accept Forces Help to Buy as part of your deposit.
- Consider fluctuating income (e.g., deployment pay or allowances).
- Offer mortgage deals tailored to military personnel.
3. Buy-to-Let Mortgages
If you’re planning to stay in Army accommodation but want to invest in property, a buy-to-let mortgage could be an option. This allows you to purchase a property and rent it out while continuing to live on base.
4. Joint Mortgages
If you’re buying a home with a partner or spouse, joint mortgages can help combine your incomes to increase your borrowing potential.
Challenges You May Face and How to Overcome Them
Being in the military does come with some unique challenges when it comes to buying a home, but these can be managed with the right advice:
1. Frequent Postings
- Challenge: You may be posted to different locations, making it harder to settle in one place.
- Solution: Buying a home doesn’t mean you have to live in it full-time. Renting it out while you’re away is a common option.
2. Fluctuating Income
- Challenge: Additional allowances or changes in deployment pay can make it harder for lenders to assess affordability.
- Solution: Work with a mortgage broker like Verve Financial who understands how military pay works and can find lenders familiar with your situation.
3. Time Constraints
- Challenge: Your busy schedule might make it difficult to handle the paperwork and research.
- Solution: A mortgage advisor can take the stress off your plate, managing the process from start to finish.
Tips for Military Personnel Thinking About a Mortgage
1. Understand Your Affordability
Work out how much you can borrow and what your monthly repayments would look like. A mortgage advisor can help you crunch the numbers based on your military income and allowances.
2. Save for Additional Costs
Even with Forces Help to Buy, you’ll need to budget for legal fees, surveys, and potentially a deposit if the loan doesn’t cover it all.
3. Check Your Credit Score
Having a good credit score is essential. Check yours early and address any issues before applying for a mortgage.
4. Use a Mortgage Broker
At Verve Financial, we specialize in helping military personnel find the right mortgage deal. We know which lenders accept Forces Help to Buy and understand the unique challenges of military life.
