Service personnel and their families can experience difficulty in accessing commercial products and services due to their mobility and time spent outside the UK. The Ministry of Defence (MOD) has worked with the financial sector to improve the ability of armed forces personnel to access financial products.

The representative bodies for the financial sector are raising awareness within their membership of how to avoid disadvantage for service personnel and their families. They have worked with MOD to develop these top tips for the armed forces on credit ratings, mortgages and loans, BFPO addresses and insurance.

Financial top tips for service personnel

Mortgages and loans

Lenders take several factors into account when deciding whether to grant a mortgage or loan. This includes a check against future credit affordability to make sure that you will still be able to afford the repayments if interest rates rise in the future. Your credit history is also very important in a lender deciding whether or not to grant your application, and so you must keep your address information accurate and up to date.

Before you buy a property you need to be able to take on the financial responsibility of a mortgage. The details of every application will be assessed independently. As with a civilian, your income be important in deciding whether or not you are successful. A lender will want a deposit paid towards the cost of a property, and will assess your financial situation to decide whether you can make monthly payments at an acceptable level. Assistance is available through the Forces Help to Buy Scheme.

Some lenders make special allowances for helping service people with their applications when they have spent significant periods of time abroad in the past 3 years. If you have been posted overseas you should check to see whether your lender is one of these. Simply having moved frequently or having lived overseas will not in itself mean that you can’t get a mortgage, or that loan repayments will be higher.

Related information

  • MoneyForce: a financial awareness and training website for service personnel and their families
  • Joining Forces credit unions: MOD has made it possible for 3 of the UK’s leading credit unions to join forces and make simple savings accounts and loans available to the armed forces and their families

Contains public sector information licensed under the Open Government Licence v3.0.



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