Mortgages for the Armed Forces Community

Mortgages can feel complicated at the best of times — and military life adds extra layers that civilian borrowers don’t deal with. Frequent moves, BFPO addresses, overseas postings and variable allowances can all make the process trickier.

This guide breaks everything down simply for serving personnel, veterans, spouses and reservists, so you know exactly what to expect and how to get the best possible deal.

Why Mortgages Work Differently for the Armed Forces Community

Your income isn’t straightforward. Lenders don’t always understand allowances like LOA, CILOCT or deployment pay — meaning some won’t count your full income.

Military life creates situations most civilian borrowers never deal with — and they can confuse lenders if you don’t choose the right one.

Here’s how your circumstances can affect an application:

• Frequent moves → messy credit file and mismatched addresses
• BFPO addresses → BFPO addresses sometimes display as non-UK on credit reports, so lenders may struggle to verify your identity unless the file is corrected.
• Overseas postings → allowances and payslips can be misread
• Variable allowances → some lenders don’t count them fully (reduces how much they’ll lend)
• Spouse career disruption → patchy income can reduce joint affordability
• Leaving service → civilian job gaps affect income checks
• Short-notice postings → Postings can change quickly, so lenders may ask extra questions about stability and affordability.

None of these are actual “problems”. You simply need a lender or broker who understands military life and knows how to present your income properly.

Eligibility: Can You Get a Mortgage if You’re Serving, a Veteran, or a Military Spouse?

Serving Personnel

Yes — but choose lenders familiar with MOD income. Not all lenders assess military income the same way. Some count your allowances in full, some only partially, and some ignore them entirely.

Common examples:

• LOA: often counted at 50–100% depending on lender
• CILOCT: sometimes treated as a deduction rather than income
• Specialist/Trade Pay: usually accepted but varies
• Deployment Pay: some lenders don’t count temporary uplifts
• Reservist Pay: included by some lenders, ignored by others

Many mainstream lenders do accept these, but some only count a percentage — which affects how much you can borrow. This is why using a Forces-friendly broker can increase how much you can borrow, they know which lenders count your income correctly.

When you leave service, lenders switch from assessing MOD pay to assessing civilian income. If you’re in a transition period — taking time out, retraining or waiting for your new job to start — lenders may see this as “unstable income”, even though it’s normal during resettlement.

Reservists

You can get a mortgage based on:

• Your civilian salary
• Plus some lenders will consider reservist income

The trick is choosing the right lender — some won’t count variable reservist pay at all.

Veterans

Absolutely. In fact, some lenders prefer veteran applications because:

• Income is typically civilian-stable at this point
• Address history is easier to verify
• Pay structures are simpler

Where veterans get stuck is credit history gaps, especially if you lived overseas, used BFPO, or moved frequently.

Leaving the Forces changes the way lenders assess your finances. Instead of MOD pay, lenders want to see civilian income and evidence it’s stable.

Most lenders will ask for:

• 3 months of civilian payslips
• A job offer letter or contract
• A UK address history (without BFPO)
• Evidence of savings or deposit

If you've recently left and your credit file includes overseas postings or BFPO addresses, a Forces-friendly broker can help present your case clearly.

Military Spouses & Partners

Military spouses often face CV gaps due to postings, irregular work patterns during deployments, or limited childcare. This can make joint affordability appear lower, even when the household income is secure.

A Forces-aware lender will take this into account and may offer more flexibility when assessing family income.

Shared Ownership for the Armed Forces Community

Shared Ownership can be a useful way to buy a home with a smaller deposit, especially near high-cost bases.

Pros: lower deposit, often cheaper than renting
Cons: you pay rent + mortgage, service charges can be expensive

It’s often a good option for newer recruits, single parents, or families settling after transition.

The One Thing to Do First: Fix Your Address History

This is the #1 reason Forces borrowers get rejected.

Military life means:

• Moving every 1–3 years
• Living overseas
• Using BFPO
• Not always updating electoral roll addresses

All of this can break your credit file.

Credit agencies sometimes log BFPO as an international address, which can break your credit file unless corrected.

Fix it in 10 minutes:

Check all three credit agencies:

• Experian
• Equifax
• TransUnion

Look for:

• Incorrect previous addresses
• BFPO listed as non-UK
• Duplicated addresses
• Old SFA addresses still active

Your mortgage chances improve instantly when this is sorted.

Forces Help to Buy Scheme (If You’re Still Serving)

Most serving personnel don’t realise they could access up to £25,000 interest-free for their deposit, fees or moving costs.
Forces Help to Buy (FHTB) is one of the biggest advantages available to people still in service and easiest ways serving personnel can boost their deposit without increasing their debt burden.

What you can borrow

• Up to £25,000 interest-free
• Or up to 50% of your annual salary
  Whichever is lower.

What you can use it for

• Deposit
• Estate agent fees
• Solicitor fees
• Stamp Duty

Who qualifies

• Regular personnel
• 2+ years’ service
• Medically and administratively fit
• Not within 6 months of discharge

Repayment

• Over 10 years
• From your monthly salary
• No interest

If you’re even remotely thinking of buying your first home — check this first.

How Lenders Assess Forces Income

Not every lender counts military allowances in the same way. Some include deployment pay and LOA in full, others only count 50%, and some ignore temporary uplifts entirely. This can mean two lenders offer very different borrowing amounts. even with the same income.

They will look at:

• Base pay
• Specialist pay
• Deployment pay
• Overseas allowances
• Rent/board deductions
• Reservist income (case by case)

Common issues:

• Some lenders only count 50–80% of allowances
• Some ignore deployment pay entirely
• Reservist income may not be included
• Overseas pay can be misunderstood

This is why you must use a Forces-friendly broker — they know which lenders count the full income.

Where to Find Forces-Friendly Mortgage Brokers

Not every bank understands the unique challenges of military life – like frequent moves, overseas postings, or gaps in UK credit history. That’s why forces-friendly mortgage lenders in the UK are worth seeking out. You want brokers who:

• Regularly place military cases
• Understand allowances
• Know which lenders accept deployment pay
• Can fix BFPO/credit file mismatches
• Have direct contacts with underwriting teams used to military applicants

Some high street banks and specialist lenders advertise themselves as “forces-friendly,” so it’s worth comparing options.

Ex-Military Mortgage Advice: How to Find the Best Deals

Getting ex-military mortgage advice is a smart step before applying. Advisers with experience supporting veterans can:

• Help you understand eligibility for MOD schemes

• Compare the best mortgage deals for your circumstances

• Explain how leaving the forces may affect affordability checks

• Support you if you’ve had credit issues while serving abroad

The right financial advice can save you money and prevent setbacks with lenders who may not understand the realities of military life. Patrick James Solutions provides free mortgage advice, with founder Patrick – a veteran himself – specialising in tailored support for the Armed Forces community.

MOD Home Ownership Schemes

Alongside FHTB, there are other MOD home ownership schemes and support routes for service leavers, including:

• Shared Ownership schemes – buy part of a home and pay rent on the rest

• Government Help to Buy and First Homes – available to veterans as well as civilians

• Housing grants and support – from charities like The Royal British Legion, especially for injured veterans or families in hardship

These schemes are designed to make buying or keeping a home more realistic for forces families.

Quick Checklist Before You Apply

• Check all three credit files (fix BFPO/address mismatches)
• Gather 3–6 months of bank statements
• Check Forces Help to Buy eligibility (if serving)
• Stabilise your address where possible
• Use a Forces-friendly broker who knows MOD pay
• List all your allowances clearly on applications so the lender understands your full income.

Veteran Mortgages & Home Ownership FAQs

Can veterans get special mortgages in the UK?
Yes. While there isn’t a separate “veterans mortgage,” there are specialist lenders and schemes that make it easier for service leavers to buy a home.

What is the Armed Forces Help to Buy (FHTB) scheme?
It’s an MOD initiative allowing serving personnel to borrow up to £25,000 interest-free towards a deposit or home-buying costs.

Which banks and lenders are forces-friendly?
Some high street banks and specialist lenders advertise forces-friendly mortgages. An independent adviser can point you to the most suitable options. Barclays, NatWest, and Nationwide advertise as forces-friendly lenders. Specialist advisers like Mortgage Advice Bureau sometimes run veteran-focused schemes. 

Can military spouses apply for veteran mortgage schemes?
Spouses aren’t usually eligible for FHTB, but they can apply for joint mortgages, shared ownership, or government housing schemes with the veteran.

Are there deposit support schemes for ex-forces families?
Yes. In addition to FHTB, there are shared ownership and government schemes, plus some military charities that offer grants for deposits or housing support.