As Ex-Military we have put together this step-by-step guide to help you understand the process involved with dealing with your military mortgage and to getting the keys to your first home. We will always try to fit in with your FOE and don’t work a civvy 9-5, Monday – Friday routine and often fit in with those serving overseas via WhatsApp, Skype, Facetime, or email. Even if you have had to remove your Sim card away on Ops, we can still communicate with you.
Communication is key and the first thing we should mention is we have to talk to you to get a better understanding of your circumstances. The first thing we will do is to reply to your online enquiry asking when the best time for us to contact you, as we know often you apply whilst at work or on duty. Unfortunately, if you don’t reply to this and we don’t have further comms with you, we simply can’t help.
1. Initially we will have a confidential chat with you and answer all the questions you have, whether it’s about how much you can borrow, the purchasing process or applying for the forces help to buy via JPA. At this first call we will run through our services we provide and issue you our terms of business letter to satisfy our industry compliance. If you think of further questions you didn’t ask during our first chat, feel free to come back to us as many times as you like until you have enough information to proceed to the next stage of your enquiry.
2. When you are ready the next step is to complete a financial review. This is like a miniature mortgage application form and will go through all your details such as address history, credit history (don’t worry if your credit file isn’t that healthy as we often deal with applicants with previous credit problems), income and expenditure and importantly what it is you are looking for in a mortgage (fixed rate, free survey fees etc).
3. We will then use several pieces of software to check lenders affordability calculations, lending criteria and finally search through over 11000 mortgage schemes to match the best deal for you and for us to be able to produce a mortgage quotation for you and provide it as a PDF.
4. If required, we can also use a legal quoting software to search legal providers who are forces friendly and can provide a legal quote so you know how much the conveyancing (legal work) will cost to enable you to purchase your new home. We can also search the market and provide quotes for all your necessary insurance needs as well.
5. Once you have accepted our recommendations on the military mortgage scheme best suited to your requirements, we will then log onto the lenders website and apply for your agreement in principle. This is effectively a certificate that says how much they are willing to lend you and you can take with you to the estate agents to prove you have the money to complete the purchase. The lender will complete a credit search on you at this stage.
6. Once your o‑er on a house has been accepted, we will collect the property details from you and liaise with the estate agent, providing them with lender details, solicitor details and letting them have us as a point of contact.
This is important so you can get on with your daily routine without being pestered/chased by agents to see how the purchase is proceeding.
7. We will then apply for the full military mortgage for you and provide property details, solicitors details and estate agents details to the lender so that they can survey the property and produce your mortgage o‑er. At this stage we will have received from you all your pay statements, bank statements, proof of ID and anything else the lender has requested.
8. Once your o‑er on a property has been accepted you should log onto JPA and apply for the forces help to buy (if you are using it). JPA will require the property address and solicitor’s details as well as how much you are looking to borrow. Don’t forget you can borrow up to 50% of your salary (capped at £25,000 if you qualify). Once accepted they will issue you a PIN (Personal Identification Note), which we will need a copy of for the mortgage lender.
9. Once the military mortgage lender has all the information they have requested and the property survey/valuation has been received, the next stage is for them to issue the formal mortgage o‑er. This is sent to you and your appointed solicitors and we also receive a copy.
10. Solicitors then need to complete all the legal work for the conveyance to take place, including land registry and local searches (be prepared to pay an amount of around £350 up front to your solicitor to cover these costs). When they have completed all their work, they will then set a completion date and arrange for your mortgage funds to be paid to them and exchange contracts. This is when you pay the deposit (if using the forces help to buy, this is paid direct to the solicitor from the MOD). Completion then takes place and you receive your new house keys.
11. We can also put in place any insurance requirements you may have. Many of our clients have simply bought life insurance in the NAAFI or cookhouse to receive a free Apple Watch or Netflix and not only can this prove expensive insurance, but it often isn’t fit for purpose to cover your new mortgage, so we would suggest reviewing this to ensure your mortgage is properly covered.
Security is key and to protect our client’s data we send you details to a client portal. This enables you to log in directly to our systems and see all the information in real time. You can securely upload documents and any time we have a document to share with you, we simply add it to your portal and you are notified there is a document waiting for you. This is far more secure than you emailing us bank statements, payslips, passports etc. There is a secure message service on the portal too so you can send important secure messages to us if you wish. You can access this portal worldwide from any device, all you need is internet or 3G.
Hopefully this quick guide has been of use to you and we look forward to making contact and discussing your mortgage requirements. Should you wish to discuss anything in this article and start the process with military mortgages then please contact us anytime on 0333 772 1328 or email us at help (@) idealhomeloans.co.uk