A career in the Armed Forces offers many benefits, good salary, great pension, full sick pay, discounted housing, subsidised dining, free medical and dentist along with good career progression, but what happens when you leave??
Many of you use your gratuity for a deposit to buy your first home – but some forces personnel experience difficulty getting a mortgage, this can be due to the change in your employment status. Your Mortgage Hub believe that you should be looking to purchase your first property early in your career, to avoid stress when you are leaving the Forces, at that point you need to be concentrating on your next steps with regards to your Career, and not where you and your family are going to live.
Your Mortgage Hub have arranged mortgages for many forces’ personnel over the last 15 years, all of our Advisers have forces connections and a wealth of experience and fully understand your lifestyle.
We would like to show you how we can get you onto the property ladder early in your career, and the future benefits this can bring.
Your Mortgage Hub have a range of special mortgage packages tailored to your lifestyle. Some lenders will allow you to purchase a property with a 5% deposit using Residential Mortgage Rates but allow you to rent out the property using Consent to Let, this is a fantastic opportunity for all Forces Personnel, and one that is not explored enough. Usually if you purchase a property to rent out you would need a buy to let mortgage, you would need a minimum of a 25% deposit, Buy to Let mortgages typically have higher interest rates. So, by using the Forces Covenant you would only need a 5% deposit and you would benefit from competitive rates of interest. Please note that if you intend to rent out your property you can not use the FHTB scheme.
If you are looking for a property to live in then you can apply for the Forces Help to Buy interest free loan, this is a loan from the Forces to assist you with house purchase, this a maximum of 50% of your salary, capped at £25,000. FHTB loan can be used as your full or part deposit and can also be used to pay for Legal fees. Your intention must be for you or your family to live in the property, you would lose your rights to SFA. Also, there are Tax implications so contact us for personal advice if you are considering this a an option.
There is also the Government Help to Buy scheme, this is a government backed equity share loan for 20% of the property value, again this is for properties that you intend to live in, this is only offered on new build properties, as Forces personnel you can use the FHTB as your 5% deposit on this scheme. The term Equity Share is the key phrase when considering this as an option, when entering in to any type of contract you must take advice, and we are here to help you.
We have also found at Your Mortgage Hub that in some cases, forces personnel have experienced difficulty when applying for a mortgage due to their credit score, again we can help you. This can be due to the fact that you have moved around and when the lender performs a credit search you simply cannot be found, or it could be that you have a poor credit score due to missed payments and in some cases defaulted accounts – we are able to help you prepare your Credit Report so you can be successful in securing a mortgage, go to our website and down load your free credit report, if you need help to understand it let me know and I would be happy to go through it with you.
Remember, it is a great time to buy and, in your case, the sooner the better – why not get a property to rent out? This could be paid for by the time you leave the forces, and you would not need to use your gratuity as a deposit.
Remember at Your Mortgage Hub we are committed to help you on your journey of purchasing your property – for help and advice please contact Caroline Hall for further information......................................................