Armed Forces Mortgage Advice

Mortgages built around Service life, not against it

Being in the Armed Forces brings a set of circumstances most high street lenders simply aren't set up to assess properly: frequent postings, BFPO addresses, overseas deployments, X-Factor pay, and salary-deducted loans like Forces Help to Buy. None of these should count against you — but if your broker or lender doesn't understand how they work, they often do.

Premier Mortgage Services has been arranging mortgages across Nottingham and the wider UK for over 30 years, and as a whole-of-market broker we have access to lenders who actively welcome applications from Service personnel, including some who accept a 5% deposit when it's boosted with a Forces Help to Buy advance. We'll handle the parts of your application that trip up generalist brokers — particularly how your FHTB advance is presented to underwriters.

What is the Forces Help to Buy scheme?

Forces Help to Buy (FHTB) is a Ministry of Defence scheme that lets eligible Regular Service personnel borrow up to 50% of their annual salary, up to a maximum of £25,000, completely interest-free. It's not a grant — it's an advance of your own salary, repaid via deductions from your pay over a period of up to 10 years.

The advance can be used towards a deposit, solicitor's and estate agent's fees, survey costs, or other expenses associated with buying, moving, or extending a home. Since it became an enduring MOD policy in January 2023, uptake has stayed strong: MOD figures show payments have been made to around 32,847 applicants totalling over £516 million, at an average of roughly £15,700 per claim, with around 95% of approved applications going on to complete a purchase.

Who's eligible for Forces Help to Buy?

Eligibility is limited to Regular Service personnel with more than 12 months' service completed and at least 6 months of service remaining at the time of application. The property must be for your own use, or your immediate family's, in the UK. The scheme is not available to Reservists or those with certain disciplinary restrictions, and it can be used for a first home, moving home, or in some cases extending an existing property.

Full official eligibility and application details are set out on the GOV.UK Forces Help to Buy scheme page, and applications are submitted through the Joint Personnel Administration (JPA) portal with chain of command approval.

Why some FHTB applications stall at the finish line

This is the part a lot of borrowers — and some brokers — get caught out by. The MOD treats your FHTB advance as exactly that: an advance on your own future salary. But mortgage lenders don't always see it the same way. To an underwriter, it can look less like "your money" and more like a liability, because the repayments are deducted from your pay before it ever reaches your bank account, which makes your net take-home pay look lower on paper.

If that distinction isn't explained clearly and correctly in your application, it can lead to affordability being miscalculated, or in the worst cases, a mortgage offer being withdrawn during conveyancing. Part of what we do is make sure the difference between "loan repayment" and "advanced salary" is presented properly to the lender from the outset, and that we're placing you with a lender who has experience accepting FHTB as part of a deposit rather than one who'll query it late in the process.

We'll also factor in Service-specific pay elements — including X-Factor — correctly into your affordability assessment, and we work with lenders comfortable underwriting applicants with BFPO addresses or who are currently posted overseas.

The Armed Forces Covenant and your mortgage

Separately from FHTB, the Armed Forces Covenant is a broader government commitment that Service personnel and their families shouldn't be disadvantaged because of their Service. In practical mortgage terms, a number of major lenders have signed up to Covenant commitments that directly affect homeowners in the Forces, including consent to let your home without changing your mortgage or increasing your rate if you're posted elsewhere and unable to live in the property, Refund of Legal Expenses (RLE) support if you're required to sell and buy again because of a Service relocation, and fair treatment where Service-related moves affect your credit history or address history.

We'll help you find lenders who are active Covenant signatories, so these protections are built into your mortgage from day one rather than something you have to fight for later.

Combining Forces Help to Buy with other schemes

FHTB doesn't have to be used on its own. Depending on your circumstances, it can potentially be combined with other affordable home ownership routes, such as Shared Ownership or a Deposit Unlock-style new-build scheme, and if you're buying jointly, a partner who isn't in the Forces may separately be eligible for their own home ownership scheme. As a whole-of-market broker, we'll map out which combination actually gets you the best rate and lowest monthly cost — not just the option that's easiest to arrange.

A worked example

Say you're a Corporal earning £34,000 a year and buying a £220,000 first home. Under FHTB you could borrow up to 50% of your salary — £17,000 — interest-free towards your deposit. Combined with £8,000 in personal savings, that's a £25,000 deposit, moving you from a 96% loan-to-value mortgage down to roughly 89% LTV. That shift alone typically unlocks meaningfully better mortgage rates than you'd get at 95%+ LTV, on top of not paying a penny of interest on the FHTB portion itself. Repaid over 10 years, the deducted repayments on £17,000 would work out at a little over £140 a month from your pay.

How we help

We offer whole-of-market comparison across lenders who accept FHTB as part of your deposit, correct presentation of FHTB and X-Factor pay in your affordability assessment, support for BFPO addresses and applicants posted overseas, and guidance combining FHTB with other home ownership schemes where relevant. We do not charge a fee to any member of the Armed Forces community for our mortgage advice.

Armed forces mortgage FAQs

How much can I borrow through Forces Help to Buy?

Up to 50% of your annual salary, capped at £25,000, interest-free, repaid over up to 10 years through salary deductions.

Can Reservists apply for Forces Help to Buy?

No, FHTB is only available to Regular Service personnel with more than 12 months' service and at least 6 months of service remaining. Reservists are not eligible for this particular scheme.

Will every mortgage lender accept my FHTB advance as a deposit?

No. Most lenders do accept FHTB as part of a deposit, but not all treat it the same way, and some require the advance to be clearly explained as an advance of salary rather than a standard loan. We only place FHTB applications with lenders experienced in handling this correctly.

Does Forces Help to Buy affect my tax?

FHTB is classed by HMRC as a beneficial loan. If the outstanding balance, combined with any other beneficial loans you hold, exceeds £10,000 at any point in the tax year, the excess can become liable for income tax. We'll flag this as part of your advice if it's relevant to you.

Can I get a mortgage with only a 5% deposit as Armed Forces personnel?

Some lenders offer Armed Forces-specific discounted products that allow a 5% deposit, and this can often be boosted further using your FHTB advance. Availability depends on your circumstances and the lender's current criteria, which is where whole-of-market advice makes a real difference.

What happens to my mortgage if I'm posted overseas after buying?

Under Armed Forces Covenant commitments, a number of major lenders will allow you to let out your property without switching to a buy-to-let mortgage or increasing your rate if you're unable to live in it due to a posting. We'll help place you with a lender who offers this from the outset.

Do you charge Armed Forces personnel a fee for mortgage advice?

No. As part of our commitment to the Armed Forces community, we do not charge a broker fee to any member of the Armed Forces community for our mortgage advice.

Speak to a broker who understands Service life

Get whole-of-market advice on using Forces Help to Buy, X-Factor pay, and Covenant-backed lender protections — free of charge, with no obligation.

Premier Mortgage Services is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on your mortgage.