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Mortgage Guide Specialists in providing free whole of market mortgage advice to the Armed Forces family*


About Forces Mutual Forces Mutual has a heritage of supporting the UK military by offering Insurance, Money and Travel products and services, tailored to military personnel and their families. Forces Mutual is part of the UK’s largest not for profit financial services organisation dedicated to those that put their lives on the line. Serving those personnel as a not for profit organisation within the military market, allows us to return even more to the Armed Forces community.

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We have branches on Bases in the UK, Germany and Cyprus, providing easy and convenient access for the military community. We provide employment opportunities for partners of serving military personnel and many of our friendly staff come from military families and backgrounds. We have a competitive range of products and services that include important additional benefits valued by the Forces, but not readily available from high street Providers. This mortgage guide aims to give you the knowledge to understand the current mortgage market in the UK, what is available to you and how we can help you purchase a home.


Contents 1

About Forces Mutual

2 Contents 3

Corporate Covenant Certificate

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How we made a difference in 2015

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Finding the right home

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How we can help you

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Forces Help to Buy

10

Help to Buy

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Forces Mutual Conveyancing

13

Protecting your property

15

Moving Costs

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Budget Planner

18 Notes 19

Choose the mortgage that’s right for you

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What do I do next?

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Forces Discount

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Investment & Savings

23 Notes 24 Notes 25

Notes

26 Notes 27

Branches

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This certificate is awarded to

Forces Mutual Assurance

2016

In national recognition of their commitment to the Armed Forces.

Secretary of State for Defence

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Chief of the Defence Staff


Armed Forces Covenant Our Group vision is of ‘A better tomorrow for those who protect us today, by making their lives easier, happier and longer’. The Silver Award is a fantastic recognition of the commitment of the Force Mutual team and we look forward to supporting the military family for years to come. Forces Mutual is part of the UK’s largest not for profit financial services organisation dedicated to those put their lives on the lines. Operating as a not for profit organisation within the military market, allows us to return even more to the Armed Forces community

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Finding the right home You can start your search online on sites such as rightmove.co.uk, primelocation.com or zoopla.co.uk.* This will help you understand what is available and what price range you can work within. Once you’ve had a look for your next property, set up a meeting with one of our Mortgage & Protection Advisers to get started.

Preparation You will need to provide 3 months payslips & bank statements, identification such as passport/driving licence, verification of address such as a utility bill along with details of your income/expenditure and any existing insurance policies you may have. Remember, we offer FREE whole of market mortgage advice with access to over 80 UK lenders and thousands of mortgage deals. Whether you’re a first-time buyer, remortgaging or looking for a Buy to Let deal, our friendly, expert advisers are here to help.

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*We do not have any connection with Rightmove, Primelocation and Zoopla.


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How we can help you

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Being part of the Armed Forces Family there are some ways onto the property ladder that you may not have considered. First Time Buyers & Home Movers With such a wide array of mortgages available, it can be confusing to find the right mortgage and it can often be harder than finding the home of your dreams. You can rest assured you’re in safe hands with us, we search the whole of the mortgage market and over 80 leading UK lenders to find the most suitable deal for you. Remortgaging How much of your hard earned money are you wasting by not reviewing your mortgage? By moving your mortgage you could: oo Reduce your monthly mortgage payments oo Raise money from the equity in your property to pay for home improvements, a new car or that special holiday oo Access the benefits of a flexible mortgage

Rising house prices mean the costs of moving (such as stamp duty) are spiralling away. It might be cheaper to remortgage and improve your current home.

Buy to Let In recent years buying a property hasn’t just meant buying a home to live in; more and more of our customers are buying a property as an investment, a holiday home, or as a way of moving up the property ladder. Perhaps you are thinking about investing in your first Buy to Let property or maybe you are adding to a growing portfolio of property investments. Remortgaging is an important consideration for many landlords as mortgage deals are changing all of the time, it is even more important when you have mortgages on a portfolio of properties. You may be struggling to sell your existing property and considering letting it out so that you can move on to a new property, so called ‘Let to Buy’. It is always important to ensure that you obtain quality independent mortgage advice.

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Forces Help To Buy

Our friendly experts can help you get the mortgage that’s most suitable for you.

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The Forces Help to Buy Scheme is aimed at supporting first-time buyers and those who have to move home because they are assigned elsewhere. Regular service personnel will be able to borrow 50% of their salary up to a maximum of £25,000. This loan is interest free and is repayable over 10 years.

Eligibility To apply you must:

oo

Be in regular service

oo

Have served 2 years or more

oo

Have at least 6 months left to serve

at the time of application

oo

In the last 12 months have not

owned a property within 50

miles of the proposed purchase

(exceptions will apply)

The loan cannot be used for the purchase of a second home or buy to let property. oo Borrow up to 50% of your salary (max £25,000) oo Repayable over 10 years

Help to Buy Equity Loan Whether you’re a first-time buyer or moving up the property ladder, we can help you find a brand new home sooner through the Government’s Help to Buy Equity Loan. The Equity Loan Scheme is designed to help people to afford a newly built home sooner than they could do previously, and with a deposit of as little as 5%. The Scheme is available on properties up to a value of £600,000 in England. The Scottish Government, Welsh Government and Northern Ireland Housing Executive run similar schemes and we can help you find the most suitable mortgage so you can move into the home of your dreams sooner than you think. (Your home may be repossessed if you do not keep up repayments on your mortgage.)

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Forces Mutual Conveyancing We have teamed up with My Home Move, the UK’s largest provider of conveyancing services. Our conveyancing service has been tailored to meet the needs of our military customers and has the following benefits:

oo Free buyer protection - if your purchase does not proceed to exchange of contracts through no fault of your own, we’ll reimburse you up to £1850 in mortgage lender arrangement fees, valuation fees and solicitor disbursements oo Longer opening hours - 8am until 8pm - including weekends oo Fixed fee policy – what we quote is what you will pay* oo Access to e-Way - a great online service that allows you to track your case 24/7 and review and complete the majority of paperwork online oo Downloadable app’s – putting your conveyancing file in your pocket via iOS and Android devices oo No move, no fee - if your sale falls through completely, through no fault of your own, we won’t charge you our lawyer costs* oo Our mortgage team are able to provide immediate conveyancing quotations.

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* Terms and Conditions apply and are available on request, please contact us to discuss your conveyancing requirements.


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Protecting your property Building & Contents Insurance We can advise on a range of products to protect your home, family and lifestyle in the event of accident, sickness, unemployment, critical illness or death. Building insurance includes cover for:

Life Assurance and Critical Illness cover

oo oo oo oo oo oo

No one likes to think about this but the loss of the main household income can amount to financial devastation. If your mortgage payments cannot be met your home will be repossessed.

Alternative accommodation following an insured loss Accidental damage to fixed glass, sanitary fixtures and underground services Damage caused by emergency access Costs of tracing and accessing leaks (up to £5,000) The buyer when you are selling your home Your legal liability as owner of your home

Contents insurance includes cover for: oo oo oo oo oo oo

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Accidental damage to audio, video and computer equipment Loss or damage to contents temporarily removed from the home (up to £5,000) Contents in outbuildings (up to £5,000) and in the open (up to £2,000) Replacement locks if keys are lost or stolen Spoilage of food in freezers (up to £2,500) Loss of domestic fuel and metered water (up to £5,000)

Accident, Sickness and Unemployment cover oo oo oo

Covers your mortgage payment if you’re unable to work due to accident, sickness or unemployment Payments are usually made for a period of up to 12 months If you would like to be covered for longer than this you may want to consider taking out income protection

Income Protection oo oo

Provides a tax free monthly income if you’re unable to work due to accident or sickness Payments are made until you are able to return back to work


Surveys and valuations When buying a property it is easy to confuse a valuation with a survey. As a rule of thumb the more detailed the survey the higher the cost, however opting for a cheaper survey can be a false economy if your property has hidden problems. Basic mortgage valuation Your lender will request a valuation as part of your mortgage offer. The valuation is not extensive and does not provide details about the condition of the property or any major structural problems.

Homebuyers survey This survey covers all major sections of the property visible to the surveyor. The survey aims to provide a snapshot of the property and provide you with the areas that need immediate action or evaluation by you.

Building survey Much more extensive, detailed and comprehensive report about the condition of the property. This survey should include examination of drains, boundaries, roof structure, wiring, walls and ceilings, timbers, plumbing, electrics and heating system. The surveyor should also carry out a ‘damp test’ and check for dry or damp rot.

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Moving Costs

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When buying a new home there can be lots of unexpected expenses and it is important to plan ahead and budget for the costs involved. Use our budget planner on the next page to estimate your moving costs. This will also help you understand what type of property you will be able to purchase and how much deposit you will need.

Indicative worked example 5% deposit Item

Cost

Property Price:

£100,000

Deposit:

5% - £5,000

Length of Mortgage:

30 years

Legal Fees:

£784.20*

Stamp Duty:

0%

YOU PAY PER MONTH:

£545 p/m

Source: Halifax: – 95% LTV – £280 val + £0 arrangement

Indicative worked example 10% deposit Item

Cost

Property Price:

£100,000

Deposit:

10% - £10,000

Length of Mortgage:

30 years

Legal Fees:

£784.20*

Stamp Duty:

0%

YOU PAY PER MONTH:

£456 p/m

Abbey – 90% LTV – £0 val + £0 arrangement (£250 cashback)

Stamp duty Residential land or property Stamp Duty Land Tax (SDLT) rates and thresholds Purchase price of property

Rate of SDLT

Up to £125,000

Zero

Over £125,000 to £250,000

2%

Over £250,000 to £925,000

5%

Over £925,000 to £1.5 million

10%

Over £1.5 million

12%

*Indication of legal fees based on an Ipswich postcode, however an individual illustration will be provided.

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Budget Planner Item Cost Property Price: Deposit: Length of Mortgage: Legal Fees: Stamp Duty: YOU PAY PER MONTH:

We want you to be sure you can afford your mortgage now and in the future. In order to assess affordability, you will need to complete a detailed breakdown of your current monthly income and expenditure before we can make our final recommendation to you.

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Notes

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Choose the mortgage that’s right for you

Capital repaymen mortgage

One monthly payment which is split between repaying the capital and repaying the interest, when the loan is repaid, you will own your property outright.

Longer mortgage term Opting to pay your mortgage over a longer term, for example, 30 years as opposed to 25 years can reduce your monthly payments.

Tracker mortgage Most tracker interest rate mortgages follow the Bank of England base rate, therefore your mortgage repayments could fluctuate.

Flexible/Offset mortgage

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Over payments can be made without any penalties. Payment holidays can be taken (although these are added to the end of your loan) and there is the added flexibility of extra borrowing against money already paid off your mortgage.

Family help

A relative can act as ‘guarant for your mortgage to boost y borrowing power. However, means they are liable to mee your repayments in the even that you cannot. This is subje to their financial status.


Shared ownership Being classed as a key worker, you are entitled to Government assistance to buy your home.

nt

h

Buying with a friend Share the monthly costs and two of you are on the property ladder.

What do I do next? Decide the value of property you want to buy Decide where you want to buy Book a mortgage appointment Undertake some property viewings Make an offer on the property

tor’ your this et nt ect

Make a mortgage application Arrange conveyancing and survey Review your insurance protection requirements to include property and contents

Fixed rate mortgage For a set period at the start of your mortgage, the lender will guarantee that the interest rate you are charged will remain the same for a fixed period.

Get fantastic moving deals with forcesdiscount.com Move in

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Forces Discount

Forces Discount Discounts, offers and rewards for the Military and UK Armed Forces Forces Discount is the first and still the number one choice for companies to exhibit their excellent deals and discounts to the UK Armed Forces and Military communities. Forces Discount works directly with a range of businesses to bring you exclusive Military discounts for anything from your next holiday or day trip out, to a brand new car and insurance cover.

Discounts available in: Insurance

Financial Services

Travel & Holidays

Car Hire

Motoring

Plus much more

Shopping Leisure & Days Out Technology & Internet Household

forcesdiscount.com info@forcesdiscount.com /forcesdiscount 21

@forcesdiscount


My Sovereign ISA Start securing your tomorrow with a guaranteed investment ISA* Your Financial Ally Call Us 00 800 00 01 02 03 0044 (0)345 658 1140 www.forcesmutual.org PMGI Limited (PMGI), trading as Force Mutual, is registered in England & Wales No.1073408. Registered office: Alexandra House, Queen Street, Lichfield, Staffordshire WS13 6QS. Scottish Friendly Asset Managers Limited is registered in Scotland No. SC187215. Registered office: Scottish Friendly House, 16 Blythswood Square, Glasgow, G2 4HJ. Universal International Freephone Number (UIFN) - local connection charges may apply, please check with your telephone provider. Calls to 03 numbers usually cost no more than to geographic numbers (01 or 02) and are usually included in call packages, please check with your phone company if they are included in your package.

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Notes

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Notes

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Notes

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Notes

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Mortgage Office: 00 800 00 01 02 03

Call in to your local branch to make an appointment or for more information United Kingdom Abbey Wood Neighbourhood 2 MoD Abbeywood Filton, Bristol BS34 8JH Tel: 0117 969 2967 MoD: (9352) 41480 Collingwood HMS Collingwood Howe Building New Gate Lane, Fareham Hants PO14 1AS Tel: 01329 287 535 Mil Extn: 2021

Lisburn Building 45 Thiepval Barracks Magheralave Road Lisburn, County Antrim Northen Ireland BT28 3NP Tel: 02892 66976

Plymouth HMS Drake Saltash Road Devonport Plymouth PL2 3BG Tel: 01752 605448 RN EXTN: 67577

Faslane HMS Neptune HMS Naval Base Faslane G84 8HL Tel: 01436 811986 Mil Extn: 8514

Sandhurst Sandhurst Hall RMAS Camberley GU15 4PQ Tel: 01276 23415

Colchester Forces Mutual Newman Road Merville Barracks Colchester, CO2 7UT Tel: 01206 547051

Germany Paderborn Garrison Shopping Complex Sennelager BFPO 16 Tel: 05254 85893

Gutersloh Princess Royal Barracks Gutersloh BFPO 47 Tel: 05241 237925

Cyprus Akrotiri Forces Mutual RAF Akrotiri BFPO 57 Tel: 00 357 25826121 Tel: 00 357 25275146 Mil: EXTN 514

Dhekelia Forces Mutual 40A Alexander Bus Dhekelia BFPO 58 Tel: 00357 97894490 Mil: EXTN: 4855

Episkopi Forces Mutual Episkopi Garrison BFPO 53 Tel: 00 357 25211230 Tel: 00 357 25962011 Mil: EXTN: 2011

Your Financial Ally Call Us 00 800 00 01 02 03 0044 (0)345 658 1140 www.forcesmutual.org Mortgage Excellence Plc (MEX), trading as Forces Mutual, is registered in England & Wales No. 3527577. Registered office: Alexandra House, Queen Street, Lichfield, Staffordshire WS13 6QS. MEX isauthorised and regulated by the Financial Conduct Authority. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP YOUR REPAYMENTS ON YOUR MORTGAGE. Universal InternationalFreephone Number (UIFN) - local connection charges may apply, please check with your telephone provider.*The advice and recommendation service is free. There is no charge for administering your mortgage application as a fee is received from the lender. Alternatively you can opt to pay a fee of 1% of the mortgage and receive a refund of the lender’s fee on completion FM1626b (0817)

Armed Forces Mortgage Guide  

This guide will take you through the entire house purchasing process, from finding the right home, to the Forces Help To Buy scheme, and con...

Armed Forces Mortgage Guide  

This guide will take you through the entire house purchasing process, from finding the right home, to the Forces Help To Buy scheme, and con...

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