Mortgage service exclusively for the Armed Forces

Before you start looking at houses, speak to one of our advisers, you will need to know where you stand. Your main aim is to find out the maximum house price you can afford based on your circumstances, the costs involved and the approximate monthly mortgage repayments. You will need to provide details of your income (pay slips will help), outgoings, especially loans or credit cards (your latest bank statement is ideal for this) and whether you are aware of any issues with your credit history such as late payments. If you are unsure, you can be one step ahead of the game by downloading your credit report at www.checkmyfile.com for the adviser to look at. CheckMyFile shows all 3 main credit agencies and is very detailed. It's free for 30 days and £14.99 per month thereafter, but you can cancel in the free trial period. Poor credit does not necessarily stop you getting a mortgage, talk to the adviser, everything is in the strictest of confidence.

In most circumstances you will need a deposit of at least 5% of the purchase price of your new house. As an example, a purchase price of £200,000 would require a £10,000 deposit. You may be able to use the Forces Help to Buy scheme (10-year interest free loan), towards your deposit and/or other setting up costs. Our adviser will explain how the scheme works along with the monthly costs and can walk you through how to apply on the JPA Portal, however it is always worth speaking with your line manager or commanding officer as soon as possible to confirm that you qualify for the scheme. Not all mortgage lenders will accept the FHTB as a source of deposit, so using a broker with experience of armed forces mortgages will help save any disappointments.

Please note that if you intend to buy a house to rent out until you leave service, you should let the adviser know at the outset. This is quite unique and there are a small number of lenders who allow you to do this with a minimal 5% deposit offering their usual mortgage deals. Get this wrong and you are likely to be offered standard Buy to Let terms which usually involve large fees, a substantial deposit and higher interest rates.

Now you know the price range of houses to look for, you can start your search. Your adviser can provide you with a Mortgage Decision in Principle if needed, which can strengthen your reliability as a serious buyer in the eyes of the seller and /or estate agent. Feel free to include houses which are a little over budget, many sellers are often prepared to consider a lower offer although there is no guarantee of this of course.

Making offers to sellers or estate agents can be daunting, especially if they are below the asking price. Estate agents are working for the seller, and their aim is to get the best price from you. If you would prefer to remove this stress, we are working for you and more than happy to put your offers forward on your behalf (think Kirstie and Phil on Channel 4’s Location, Location, Location).

Congratulations! Your offer has been accepted. The estate agent is likely to ask for proof of your ID and proof of deposit (we can provide them with these if we have them) and the name of your solicitor or licenced conveyancer. We can help with this too.

The term used for the legal work involved in buying a house is ‘conveyancing’. Most people will employ a solicitor or licenced conveyancer to do this for them. If you already have someone in mind or have a recommendation that’s fine. Alternatively, we can recommend one for you. The solicitors we work with are used to dealing with armed forces mortgages and this is particularly important if you are using the Forces Help to Buy scheme, which involves additional legal work. Our solicitors DO NOT charge extra for this work, whereas many do. A good solicitor will also help us provide you with regular and accurate updates (see Step Five).

We will already know the type of deal you prefer for your mortgage based on previous discussions, but as it is now time to apply, we will have a final check around the market to make sure that we are getting the best deal for you based on current rates. This may be different from any Decision in Principle we originally provided if a better deal is now available from another lender. PFL Mortgages work with over 60 mortgage lenders, including all the UK’s top Banks and Building Societies.

Once we have agreed the best option with you, we will complete the mortgage application process on your behalf. A specialist armed forces adviser is important at this stage, because they have detailed knowledge of how to present specific armed forces information such as complicated income, pay deductions and BFPO addresses. This can be different for each lender and getting it right first time saves the possible embarrassment of a ‘decline’.

The adviser can also help and advise on any protection or insurance you may need, including life assurance and critical illness cover. Again, a specialist knowledge of how the various insurance companies treat those serving in HM Armed Forces is vital and can save you a lot of money.

Your solicitor has started the ball rolling with the legal work and your mortgage plus any associated insurances have been applied for. A dedicated member of our Sales Support team will now make sure you are updated on the progress on a regular basis. They will help iron out any issues which may arise and they are available for any questions you may have at any time.

At first, the focus will be on your mortgage application. Our aim is to make sure the lender provides you with a formal Mortgage Offer as quickly and efficiently as possible and that the details it contains are correct. Some lenders are more efficient than others and an offer in a few hours is not impossible, however 1-2 weeks is more realistic. At the other end of the scale, some lenders are less efficient, or they may be inundated with applications if they have a market leading deal on offer. Although this may create a lengthy delay, our Sales Support will make sure that your application proceeds as quickly as possible, and that you are aware of the position at every stage.

Once you have a Mortgage Offer, in addition to checking on any of your insurances, they will now turn their attention to your solicitor. The conveyancing process can take several weeks, and it is common to have periods of time where nothing seems to be happening. Even so, our Sales Support will keep you updated and manage your expectations should progress seem slow.

Once your solicitor has everything in place, they will exchange contracts. You will then be legally committed to buying the house and a completion date can be set. Sales Support will let you know as soon as possible when this has taken place.

Completion, the day the house legally becomes yours, will take place after contracts have been exchanged, on a specified date agreed by all parties involved. Sales Support will confirm that completion has taken place and that any insurances you have taken have started.

Hopefully the whole process has been smooth, and it is now time to relax and enjoy a brew and a biscuit.

We sincerely hope that your experience will be a positive one, our exceptional customer reviews certainly suggest that we are getting it right. But our commitment doesn’t stop here. We will be there for you whenever you need us in the future, especially when your mortgage deal ends or you decide you want to move house.