Armed Forces Mortgage FAQ
General information only. This is not financial advice.
Last reviewed: 2026-06-06
What is the Forces Help to Buy scheme?
Forces Help to Buy (FHTB) allows eligible UK Armed Forces personnel to borrow up to 50% of their salary (max £25,000) interest-free as a deposit for a first home or moving costs on a duty station change. Repaid over 10 years via payroll deductions. Eligibility: at least 6 months served, at least 6 months remaining, buying to live in (not let). Lenders treat the FHTB repayment as a committed debt and assess your mortgage affordability after deducting it from income.
How is Armed Forces pay assessed for a mortgage?
Basic salary and pensionable allowances are included by most lenders. X-Factor (14.5% addition to military pay) is part of basic pay and always included. Variable elements — Operational Allowance, CEA, LSA — are treated differently: some lenders include them if evidenced for 12+ months, others exclude them. London supplement is generally included. Confirm with your broker which specific pay components are included by your target lenders before applying.
Can I get a mortgage while deployed overseas?
It is possible but requires planning. Key issues: signing documents remotely (some lenders accept Power of Attorney, others do not); ID verification procedures; and accessibility during underwriting. Some lenders have specific Armed Forces deployment policies. The easiest approach is to start the process well in advance and aim to exchange or complete before deployment. A specialist broker with military clients will know which lenders accommodate deployed applicants.
Does frequent relocation affect my mortgage eligibility?
It can — short periods at each address complicate address history checks, and some lenders prefer 3 years' continuous UK residential history. BFPO addresses and overseas postings should be disclosed clearly. A specialist lender familiar with Armed Forces borrowers will understand the relocation pattern. Maintaining an active UK credit profile (bank account, credit card, electoral roll registration at a permanent UK address where possible) helps mitigate the impact of frequent moves.
Can I use my AFPS pension income for a mortgage?
Serving personnel: the AFPS pension is an accruing benefit, not current income — it does not count towards affordability. Veterans already receiving a preserved or deferred AFPS pension can include it as income, and most lenders are experienced at assessing this. On discharge, AFPS pension (immediate or deferred) can support mortgage affordability calculations. Specialist lenders are well-placed to handle the transition from service income to pension income.
Can I rent my home out when posted to another garrison?
Yes, but you need consent to let from your lender. Most lenders grant consent to let for Service families on short-term posting. If postings are repeated and the letting is likely to be long-term, consider converting to a buy-to-let mortgage. Check your MoD SSFA entitlement alongside the letting — it may interact with your ability to maintain a tenanted property at the same time.
Risk warning
Your home may be repossessed if you do not keep up repayments on your mortgage. Forces Help to Buy loans are a commitment that will affect your mortgage affordability — factor in the repayment before borrowing.
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