Lenders prepare to offer better mortgage terms for Armed Forces

February 5, 2016 by Brendan O'Neill

Lenders

A number of lenders have agreed to provide members of the Armed Forces with fairer mortgage products, following an agreement between the British Bankers’ Association and the government.

Previously, if a member of the Armed Forces had to rent out their home while deployed overseas, they may have been subjected to a more expensive mortgage or varied terms. The new agreement means that a lender won’t be able to enforce a more expensive mortgage deal, which usually results in more expensive charges and interest rates.

Around 265,000 people will be affected by the new agreement, which includes members of the Armed Forces and their families. Barclays claims to have had this policy in place for a few years and has expressed delight that other banks will join them. Among the banks to offer support under the agreement are Santander UK, Lloyds Banking Group, HSBC, Nationwide and Royal Bank of Scotland.

Michael Fallon, the defence secretary, says that the new policy is a good first step towards offering service men and women in the armed forces a better deal for their mortgages. Anthony Browne, the chief executive of BBA, stated that it was only fair to look after the armed forces, as they travel worldwide to keep us safe.

The new move will make sure that military personnel aren’t left at a disadvantage when they are posted overseas. For many people, finding an affordable mortgage can be a problem, which is why mortgage advisers study for the CeMAP qualification, so that they can offer support.