Military Mortgages

If you work in the UK military in any capacity, past or present, you can get exclusive professional mortgage deals and qualify for schemes unavailable to the civilian public. This guide explains how to get a military mortgage, the best lenders to speak to, and where to get top mortgage rates.

Are there specific mortgages for military personnel?

Although there are no specific “military mortgage” products, military professionals can access better rates, government schemes, and bespoke mortgage deals tailored to your situation. This is due to the stable and reliable career paths offered by the Armed Forces.

Military mortgage benefits

Military mortgages offer several perks and advantages to those currently serving (or who have served) in the Armed Forces:

• Flexible lending approach: Mortgage lenders that regularly deal with people in the military will understand your situation can be fluid, meaning they can accommodate specific challenges you might face like regular time spent abroad, low base salaries, and can offer benefits like repayment holidays.
• Consideration of overseas service: Lenders can be flexible if you’ve been stationed abroad for long periods, or if your income and tax residency is complex. These lenders will also accept if you need to use a British Forces Post Office (BFPO) address. 
• No early repayment charges: Some lenders will waive early repayment charges for your mortgage if you need to move and sell your home due to relocation with the military. 
• Relaxed affordability: Certain lenders will be more lenient when assessing your mortgage affordability, which can be useful if you happen to have bonuses, subsidies, or allowances provided by a branch of the UK military. 
• Lower deposit requirements: Some lenders will be more flexible with how much you need to use as a deposit. Your deposit affects your loan-to-value (LTV) ratio, but lenders can be more relaxed for military mortgage applicants - even allowing a 95% LTV (5% deposit). 
• Better rates and deals: Lenders may be willing to offer you cheaper rates and military discounts, or they might offer goodwill gestures like waiving mortgage arrangement (product) fees.
• Renting your property: Most lenders will have strict rules about renting out your property with a residential mortgage, but these rules can be more flexible for people in the military who need to move or go overseas. 

Professional military roles covered

Your exact rank and role in the military can impact which lenders it’s best to deal with because there are hundreds of possibilities across the British Army, Royal Navy, and Royal Air Force; examples of military professions include:

• Military engineers (armourers, technical officers, cyber security or cyberspace engineers, electronics technicians, aircraft technicians, vehicle mechanics)
• Medical services (nurses, scientists, dental nurses and officers, medical officers)
• Intelligence specialists
• Combat roles (aviation, infantry, paratrooper, tank crewman, operational officers, and more)
• Aircrew (pilots, weapon systems officers) 
• HR, finance and people operations (legal officers, chaplains, media operations)
• Logistics and support staff (drivers, chefs, port operators)
• Professional musicians (household cavalry soldiers and officers, plus any other type of military musicians)
• Navy services (Fleet Air Arm, Royal Fleet Auxiliary, Royal Marines, Submarine Service, Surface Fleet)
• Military veterans
• Reserve forces (RAF Reserve, Army Reservists, Royal Naval Reserve)
• MoD civil servants
• Military family members

Anything linked to the military can be covered by some lenders who’ll be willing to provide unique mortgage deals.

How to qualify for a military mortgage

The eligibility criteria for military mortgages can vary between lenders, there will be some military-specific criteria along with standard criteria such as:

• Military service and status: Lenders will require verification of military employment and proof of your role and rank. The best way to verify you’re a member of the Armed Forces is to get a copy of your military records of service, or if you previously served you can get a HM Armed Forces Veteran Card.
• Your deposit: Although certain lenders may be flexible with deposit amounts and LTV ratios, you’ll still need to use some level of deposit, often starting at 5%. However, you may be able to boost this through government schemes which we’ll explain later.
• Income history: You’ll need to provide details of your recent income history to show it’s stable and regular, but lenders can be more flexible with military applicants to include additional bonuses, allowances or subsidies you may receive.
• Credit history: You might present less risk to some lenders, but they’ll want to check your credit history. If you’re in the military with bad credit, don’t fret, it’s still possible to get a mortgage if you deal with the right lenders.

Other factors can also play a role such as your age, location, the type of property or construction method, and more.

How much you could borrow

Typically, mortgage applicants can borrow around 4.5 times your annual salary, however, some lenders may let you borrow up to 5 times your salary (or more in some instances).

Use our calculator below to get an idea of your maximum borrowing amount with a military mortgage:

How to get an exclusive deal

Getting a mortgage can be slightly more complex, especially if your location base changes frequently, or may move in future. But it’s worth the extra effort because working in the military means accessing lenders, schemes, rates, and loan terms unavailable to civilians. 

So it’s best to explore all your options with the support of an experienced adviser. Getting advice from a skilled broker specialising in military mortgages means they can introduce you to the best military lender for your role and situation. They can also help guide you through the whole application and negotiation process.

You can compare the latest mortgage rates for free or book in a free, no-obligation chat with a specialist mortgage broker below:

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Best mortgage lenders and rates for the military

Unfortunately, you’re unlikely to find the best mortgage rates with banks and high street lenders like Barclays, Halifax or HSBC because they can’t be flexible with their deals. Or they might lack the ability to tailor a mortgage to your situation. 

The good news is that specialised, military-friendly mortgage lenders (both local and national) who regularly arrange loans for professional military personnel will be open to creating a bespoke arrangement. These deals aren’t usually advertised, and to access the cheapest and most affordable military mortgages, you’ll likely need assistance from an experienced broker.

Government support and schemes

There are some specific UK mortgage schemes targeted towards the military, and also some additional supports for home ownership you can explore:

• Forces Help to Buy (FHTB): This scheme allows military service personnel to borrow up to 50% of their salary (up to a £25,000 maximum) interest-free towards a property. To qualify you need to have completed a certain length of service and have at least six months left to serve (along with some additional criteria).  
• First Homes scheme: You might qualify for this program designed to make it cheaper for first-time buyers (FTBs) to purchase a new build property. You can get a 30% to 50% discount on the market value of a qualifying home. The discount can apply to active military, a divorced former spouse or civil partner, a widow or widower, or a veteran of under 5 years.  
• Shared ownership: This scheme means buying a portion of a property (usually between 25% and 75%), allowing for a smaller mortgage and then paying rent on the remaining portion.
• Rent to Buy: Allows you to pay subsidised rent on a newly-built home for up to 5 years (typically a 20% discount), with the option to buy the property outright or under a shared ownership scheme.
• Armed Forces Home Ownership Scheme: Up until 26 March 2024, this was a pilot scheme in England managed and delivered by the Home and Communities Agency (HCA) to provide affordable military mortgages with support of between 15% and 50% for a house purchase. There’s no news yet if it will be renewed. 

The schemes available can depend on where you’re located, the property type, and your income (along with other factors) - so it’s well worth having a conversation with an experienced military mortgage advisor to explore your options.

Why choose Teito for your military mortgage?

At Teito, our specialist advisers have proven experience securing mortgages for military personnel at all career paths and levels. This can include active service, reserve forces, family of military members, and veterans. 

We offer a free, no-obligation chat where you can discuss your specific situation with an impartial broker who can find top military mortgage rates.

Here are just some of the reasons military professionals choose us for their mortgage needs:

• Our brokers specialise in mortgages for the military 
• We can introduce you to flexible lenders with great rates
• Your first chat is free with no obligation to proceed
• We have a 5-star rating on leading review sites

Ready to compare rates for free and take advantage of a free, no-obligation chat with a broker who specialises in military mortgages? Get started here.