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AF personnel to benefit from better mortgage scheme
DB News: 15/01/2016 - 11:49
Armed Forces (AF) personnel who have been posted overseas will be able to rent out their homes without facing higher mortgage costs or being forced to change their mortgage.
The new initiative came ahead of the meeting between banking chiefs and ministers at No.10 Downing Street where various measures to help service personnel and their families were discussed.
Current regulations mean that members of the AF who rent out their homes during deployment have to change their residential mortgage to a buy-to-let mortgage which often incurs new product charges and a higher rate of interest.
The new agreement means personnel will no longer have to change their mortgage product, saving them time and money. Banks which will offer the new services include Barclays, HSBC, Lloyds Banking Group, Santander UK, the Royal Bank of Scotland and Nationwide.
Defence Secretary Michael Fallon said: “Looking after your home and your money can be more of a challenge when deployed on operations or serving abroad. This is a welcome first step from the major banks and financial institutions to help our servicemen and women get a better mortgage deal.
“I look forward to further pledges from across the financial services sector to support the Armed Forces Covenant after today’s roundtable.”
Anthony Browne, BBA CEO, said: “Members of our Armed Forces work all over the world to look after us, so it’s only right that we look after them. The extra support proposed by the banks and the Ministry of Defence will make sure service personnel and their families are not disadvantaged for working aboard and make their mortgages and credit history fairer.”
