The Forces Helping Hand and how to become a Homeowner - Caroline Hall Nov'19

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Being a member of the Armed Forces offers many benefits, good salary, great pension, full sick pay, Forces Help to Buy Scheme, subsidised dining, free medical and dentist along with good career progression, and now The Future Accommodation Model.

Historically many of you have used your gratuity for a deposit to buy your first home – but some forces personnel have trouble 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.

It has never been better time to get on the property ladder, using the Forces Help to Buy interest free Loan as your deposit and in the future with the Future Accommodation Model, money you will be given towards your choice of housing – in other words money towards your mortgage payment. No one else has either of these benefits, other than Forces personnel – so you really need to look at your options, take some advice and look at benefiting from these options. Buying a home isn’t for everyone and the Future Accommodation Model respects this as the money can also be used towards rental.

Your Mortgage Hub have arranged mortgages for many Forces’ personnel over the last 15 years, all our Advisers have Forces connections and a wealth of experience and fully understand your lifestyle and can fully advise on your options. We are also approved by SIIAP for your protection.

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. Even if you are later into your employment we can still take benefit of FHTB up to 6 months before you discharge.
Your Mortgage Hub have a range of special mortgage packages tailored to your lifestyle. We have lenders who 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 20% 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 which has now been extended to 2022, 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 as you would lose your rights to SFA. Also there are Tax implications so contact us for personal advice if you are considering this an option. The monthly repayments for this are taken direct from your salary.

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 trouble 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......................................................

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