Wednesday 23 January 2019

New research calls for better access to finance and mortgages for armed force leavers going self-employed

Author: Andrew Page

Finance

Leaving the armed forces is a big step for all ex-servicemen and women. Not only does it involve starting an entirely new career, it generally also means finding somewhere new to live. With these two major challenges to tackle, it can be a difficult time for those leaving the armed forces and many struggle to make a smooth transition.

One of the biggest challenges that ex-servicemen and women face is getting onto the property ladder. Many people leaving the armed forces won’t have a regular income, something that will make securing a mortgage a lot harder. Those that plan to become self-employed have even more hoops to jump through with most banks demanding a strong company history before they’ll offer a loan.

 

However, if you’re just about to leave the armed forces and are planning on buying your first home, don’t despair. With some expert help and some careful planning, your dream of property ownership should be achievable.

The challenges of a self-employed mortgage

As SimplyBusiness says, “Lenders will generally require you to provide at least three years’ worth of accounts, and many will look for evidence that your business has grown during that period.”

However, if you’re setting up as a self-employed worker for the first time, you won’t have any books to show a prospective lender. This can be a major issue when it comes to securing a mortgage. In some cases, lenders will consider applicants with just one year of books. Your mortgage advisor should be able to track down any loans you might qualify for.

 

Special schemes for armed forces leavers

There are a number of specially designed schemes available for people leaving the armed forces. These have been created to help ex-servicemen and women adjust to life on Civvie Street and get their new lives off to a positive start.

A number of these schemes relate directly to housing. Ex-service personnel can apply for help to buy schemes; some banks provide specially designed mortgages for people leaving the armed forces. These programmes can make a huge difference to those trying to get onto the property ladder, especially people who plan to go self-employed or work in non-standard industries.

Getting expert advice

If you’re unfamiliar with the world of mortgages and house buying, getting expert advice before making a purchase is a must. An experienced mortgage advisor will be able to point you in the direction of programmes and schemes designed for ex-service personnel, and will walk you through the steps involved in applying for a mortgage.

Speak to one of the members of our expert team today to find out how you can get your foot on the property ladder.

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Written by: Andrew Page