Why Does It Feel Difficult To Arrange An Army Mortgage?
When we serve in the Army, we are often caught with chasing our careers, postings, courses and being on Ops. Add this to the cost-of-living charges for SLA or SFA, often we look to the simple life and ignore G1 financial matters and don’t look to buy our first home until later in life.
With house prices risen dramatically in the last few years and increases set to continue, there is no better time to get on the housing ladder and buy your first home.
As part of any Army mortgage lenders application, they will run a credit check. To be found on the credit check there you need to be registered on the electoral role at the address being checked and/or at least have some credit activity at that address. Serving overseas at a BFPO for a long period of time as PS to BATUS, BFC, BFG, BATUK (or anywhere) will affect your application. Credit reference agencies can’t score you when you are overseas, so even if you have no bad credit history, you could struggle.
Civilian mortgage advisers may know the basics surrounding the Forces Help to Buy scheme, but they won’t understand how you apply via JPA, sign off through the CoC or med centres. They also won’t understand how your pay is made up (SF pay, jump pay, LOA, Op tour bonus, GYH etc). As ex-military at Ideal Home loans we know and understand how you operate and are paid. This makes it easier when we speak with you and then deal with the mortgage lender on your behalf.
Knowing you can be posted at any time, lenders granting Army mortgages, build in something called “permission to let”. This allows you to let the property out if you are posted away (you normally must occupy the property for 6 months). Civilians must apply for “permission to let” or change their mortgage to a “buy to let” mortgage if they do their, either option costing them fees or a higher interest rate.
One lender arranging Army mortgages will allow you to borrow 90% of the property value and rent it out from day one whilst living in your pad or SLA. This enables you to obtain an investment income from the property as well as getting on the housing ladder.
We often deal with clients who are overseas and can use skype or WhatsApp to ensure you are chatting over Wi-Fi and not using expensive mobile airtime and we are used to working the time difference when dealing with BATUS, BATUK or Brunei.
Should you wish to discuss anything in this article and start the process with army mortgages then please contact us anytime on 0333 772 1328 or email us at help (@) idealhomeloans.co.uk.