Military mortgages: a guide for armed forces personnel and families
There's no single "military mortgage" in the UK. Serving personnel apply for the same mortgages as everyone else, but you have access to Forces Help to Buy, an interest-free loan of up to £25,000 from the Ministry of Defence, and some lenders are much better than others at understanding service pay, postings and service accommodation.
Updated 17 September 2026 with current Forces Help to Buy rules. Scheme rules are set by the MOD and lender criteria change, so check the details before you commit.
At a glance
- Special product?
- No. You use standard residential or buy-to-let mortgages, chosen with a lender that understands service life
- Forces Help to Buy
- Permanent MOD policy since 1 January 2023: up to 50% of salary, capped at £25,000, interest-free
- Forces pay
- Basic pay, which already includes X-Factor, is typically counted in full. Allowances vary by lender
- Posted away?
- Consent to let, let-to-buy or buy-to-let can let you keep your home while you serve elsewhere
- Leaving?
- Plan early. Lenders will want to see what your income looks like after service
What does "military mortgage" mean in the UK?
People searching for military or armed forces mortgages usually want one of three things: help with a deposit, a lender that counts forces pay properly, or a mortgage that copes with postings and service accommodation.
The mortgages themselves are ordinary. What changes is which lenders suit you. The same payslip can produce very different borrowing figures at two lenders.
Forces Help to Buy in 2026: the current rules
Forces Help to Buy (FHTB) started as a pilot in April 2014 and became a permanent MOD policy on 1 January 2023. It's still running in September 2026, and MOD figures show more than 35,000 payments worth over £564 million since 2014.
Maximum loan
£25,000
Or 50% of your annual salary, including specialist pay, if that's lower
Interest
0%
Normally repaid from your salary over up to 10 years
| Rule | What it means |
|---|---|
| Who can apply | Regular personnel who have completed the required length of service and meet the medical criteria. Reservists and Military Provost Guard Service aren't eligible |
| Time left to serve | More than six months when you apply |
| What it's for | Buying your first home, moving home on assignment, or extending a home when your family's needs change |
| What it can pay | Your deposit, solicitor's fees and estate agent's fees |
| How to apply | Through JPA self-service, normally at least six weeks before completion |
| If you leave | Any balance still owed is recovered from your terminal benefits |
How much could you borrow through Forces Help to Buy?
Maximum loan at different annual salaries
The loan helps with the deposit and costs, but you still need a mortgage for the rest. Lenders don't all treat it the same way. Some are happy for it to form your deposit, others want some of your own money too, and most count the monthly repayment as a commitment, which can reduce how much you can borrow. See our Forces Help to Buy mortgage advice for how the scheme and your mortgage fit together.
Does the Armed Forces Covenant help with mortgages?
The Armed Forces Covenant is a promise that serving personnel, veterans and their families shouldn't be disadvantaged by service. Since November 2022 some public bodies, such as councils allocating social housing, have a legal duty to consider it. Mortgage lenders don't.
Many businesses sign the Covenant voluntarily, including lenders and brokers. Since 2016, a number of large UK banks and building societies have committed to letting posted personnel rent out their homes without higher mortgage costs or having to switch to buy-to-let. Commitments differ, so check your lender's current policy.
How do lenders treat forces pay?
Service pay is reliable, which lenders like. Problems come from payslip details that underwriters rarely see.
| Income | How lenders typically treat it |
|---|---|
| Basic pay, including X-Factor | Usually counted in full. X-Factor (currently 14.5% for regulars) is built into your salary, not paid on top |
| Specialist pay, such as flying or submarine pay | Often accepted when it's regular and ongoing. Some lenders count all of it, some a proportion, and many want payslips showing a track record |
| Longer Separation Allowance (LSA) | Varies widely. It's taxable and paid monthly, but depends on separation, so some lenders discount or exclude it |
| Overseas allowances | Tied to the posting. Some lenders include them while it lasts; many leave them out |
| Deductions | Accommodation charges and any Forces Help to Buy repayment are usually treated as outgoings |
Buying while you live in service accommodation
Many personnel buy while living in Service Family Accommodation (SFA) or Single Living Accommodation (SLA). Lenders will ask how you'll use the property.
- If it's your family home, or where you'll live at weekends and on leave, a residential mortgage is often possible.
- If you plan to let it straight away, you'll usually need a buy-to-let mortgage instead.
- If you have no rent history because you've lived in service accommodation, your service record and a clean credit file do much of the work. Our guide to credit scores and mortgages covers the basics.
Check with your chain of command or housing officer how owning a home fits with your accommodation entitlement before you buy.
Letting your home when you're posted
A posting doesn't have to mean selling. The right route depends on how long you'll be away and if you plan to buy again.
| Consent to let | Let-to-buy | Buy-to-let | |
|---|---|---|---|
| What it is | Your lender agrees you can let your home on your existing mortgage | Remortgage your home to buy-to-let, then buy a new home to live in | A new mortgage to buy a property to rent out |
| Best for | A posting of a set length, planning to move back | Keeping your home as a rental while buying near a new base | Buying a home you'll let from the start |
| Costs | Some lenders charge a fee or add to the rate; Covenant commitments can reduce this | Buy-to-let rates, arrangement fees, and possibly the additional-property stamp duty surcharge on the new purchase | Buy-to-let rates, larger deposit, and the surcharge where it applies |
| Watch out for | Usually granted for a limited period | The rent has to cover the new mortgage by the lender's margin | Landlord rules and tax on rental income |
Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. Some loans for letting a former home can be regulated as consumer buy-to-let. Whether yours is regulated will depend on your circumstances.
Letting brings landlord responsibilities too. In England, the Renters' Rights Act changed the rules from 1 May 2026, including how much notice you give to move back in. Our Renters' Rights guide explains more, and our buy-to-let service covers the lending side.
We are not tax advisers and this is not tax advice. Any mention of stamp duty or tax on letting your home is a general summary based on the rules published at the time of writing, and we make no warranty about the tax you will pay. Speak to a qualified tax adviser or accountant about your own circumstances.
Buying while serving overseas or using a BFPO address
Serving abroad doesn't rule out a UK mortgage. Many lenders' residency rules are written for civilians, but some accept serving personnel posted overseas. BFPO addresses now come with UK-style postcodes, which helps keep your UK credit history in order.
The practical issues are address history, proof of income and signing documents from abroad. Our guide to mortgages at a BFPO address covers these in detail.
Getting a mortgage when you're leaving the forces
Lenders assess affordability over the whole mortgage term, so once your leaving date is set they'll want to know what comes next.
You're still serving, with a leaving date
Often easiest if you act well before you leave
If your exit is a long way off, many lenders assess you on current pay. Close to your leaving date, expect questions about your next job or pension. Forces Help to Buy also needs more than six months left to serve.
You have a civilian job lined up
Lenders differ on offers, start dates and probation
Some lenders accept a signed contract before you start; others want your first payslip or for probation to finish. Self-employed or contract work usually needs a track record. See our guide to contractor and fixed-term mortgages.
You'll rely on your pension or lump sums
Useful for deposits and, with some lenders, income
A resettlement grant, pension lump sum or Early Departure Payment lump sum (under AFPS 15, generally from 20 years' service and age 40) can go towards a deposit. Some lenders count pension or Early Departure Payment income, with your award statement as evidence.
Mortgages for reservists
Reservists aren't eligible for Forces Help to Buy, and lenders usually base borrowing on your civilian income. Some lenders count reserve pay as a second income if you can show it's regular, while others ignore it.
How to get a mortgage in the armed forces: step by step
- Check your positionLook at your payslips, credit file and deposit, and check Forces Help to Buy eligibility on JPA.
- Get advice earlyAn adviser can work out which lenders count your pay best and get an agreement in principle.
- Apply in the right orderLine up your mortgage and apply for FHTB at least six weeks before completion.
- Plan for postingsConsider portability, consent to let and protection cover, checking how policies treat service risks.
Our mortgage timeline guide shows how long each stage usually takes.
How Quick Mortgages helps forces families
We're proud to work with the armed forces community. We hold the Armed Forces Covenant Employer Recognition Scheme Silver Award, and our forces work has been featured in the RAF Families Federation's Envoy magazine.
We're a whole-of-market broker, so we can compare high street and specialist lenders to find one that treats your pay, Forces Help to Buy loan and plans properly. There are no broker fees. We're based in Birmingham and help personnel across the UK and overseas.
Military mortgage FAQs
Is there a special mortgage for military personnel in the UK?
No. You use standard mortgages. What helps is Forces Help to Buy and choosing a lender that understands forces pay and postings.
Is Forces Help to Buy still available in 2026?
Yes. It became permanent on 1 January 2023. Eligible regulars can borrow up to 50% of salary, capped at £25,000, interest-free.
Can I get a mortgage while living in SFA?
Yes, many personnel do. Lenders will want to know whether the home is your family home or will be let, as that decides whether you need a residential or buy-to-let mortgage.
Can I rent out my house if I'm posted?
Usually, with your lender's consent to let. For longer postings, let-to-buy or buy-to-let may suit better.
Can I get a mortgage if I'm leaving the army?
Yes, but lenders will look at your income after service, such as a civilian job offer or pension.
Do I need an armed forces mortgage broker?
You don't have to, but lenders vary a lot on allowances, Forces Help to Buy and letting, so specialist advice can help you avoid a decline.
Sources
- GOV.UK, Forces Help to Buy guidance, updated 9 January 2026
- Ministry of Defence, Forces Help to Buy statistics 2025 to 2026, published 6 August 2026
- MOD Discover My Benefits: Forces Help to Buy, X-Factor and Longer Separation Allowance pages
- Armed Forces Covenant: housing and financial services support pages
- House of Commons Library, The Armed Forces Covenant and its status in law
- MOD, The Defence Housing Strategy 2025
- Renters' Rights Act 2025 implementation guidance, 2026
Correct on 17 September 2026 and may change.
Disclaimer:
This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.
While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.
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