Royal Marine turned broker on the gap in market for military mortgages
Securing a mortgage can be trying for even the most grounded and routine-oriented individual – so imagine the complexities when you don’t know if you’ll be in another country next week. For military personnel, it’s a tough reality to face.
Speaking to Mortgage Introducer, Nathan Hill (pictured) from Chris Hazell Mortgages – a serving Royal Marine – said it’s his military background that’s best positioned him to help fellow service members.
"Being in the military, I've experienced the complexities firsthand," Hill said. "Frequent relocations and unpredictable deployments create significant hurdles in securing stable housing finance. These aren't just logistical challenges but can also impact credit ratings and financial stability.”
Flexibility in military options
The military mortgage landscape, while not offering bespoke products for each service branch, has evolved. Lenders have grown more adaptable, recognizing the unique circumstances of military life such as overseas purchases and erratic income patterns.
"There’s a flexibility now, like allowing 'day one consent letters' for rental, which shows a shift in lender perspectives," Hill said. Yet, despite this progress, Hill believes there's substantial room for growth.
"The UK military is seeing a worrying attrition rate. By introducing more tailored mortgage products, we could not only improve retention but potentially boost enlistment. There’s a clear gap here that lenders could fill.”
"I've been deployed unexpectedly, which meant leaving my financial responsibilities in the hands of my partner,” Hill said. “Not everyone has such support, which can lead to financial mishaps that affect mortgage eligibility.”
This personal understanding has driven Hill to advocate for products that consider the fluctuating income associated with military bonuses and allowances.
'Forces Help to Buy' scheme
"While these can inflate your income temporarily, they can disrupt the stability lenders look for. We need products that can accommodate these fluctuations without penalizing the borrower," he said. “I believe that financial literacy should be taught more in the military. I've started providing guidance through channels like the Savvy Squaddy YouTube channel and presentations on financial preparedness.”
The 'Forces Help to Buy' scheme is a cornerstone of his advice, offering an interest-free loan to help with deposits. However, Hill pointed out the nuances: "Some lenders still don’t accept this, and there’s a tax implication for loans over £10,000. Awareness and acceptance of these aids need to improve."
Hill's approach is holistic, looking beyond the mortgage to the broader financial health of his clients.
"Long-term planning is crucial, especially when your career involves as much movement as in the military,” he said. “Setting up strong financial foundations is key to ensuring you can secure and maintain a home mortgage.
"If lenders and policymakers could collaborate to introduce and endorse more military-specific products, it would not only help individuals secure homes but could serve as a significant incentive for joining and staying in the forces."
