Navy Mortgage

Navy Mortgage

If you’re in the Navy and looking for a mortgage, wondering what your options may be, this article will be useful to you.

About mortgages for Navy workers

When working in the Navy and taking a residential mortgage, you may have access to things that would not be available to a person working another job. Some mortgage lenders allow terms for people working in the armed forces that they would not offer to other workers.

One example of this is allowing somebody to buy a residential property on the basis that it will be let immediately due to the armed forces worker being based away from home.


An expert mortgage adviser on the phone speaking to a customer

How would my Royal Navy income be assessed?

Working in the Royal Navy, you will likely get a basic income which will make up the majority of your pay. In addition to this, some employees may also get allowances on top such as a location allowance or possibly overtime for any hours worked that are outside of the contracted times.

For guaranteed allowances that remain exactly the same every month, lenders treat these in the same way that they would treat your basic pay. Depending on the lender, the maximum income multiple is generally five times income.

There are however some lenders that can offer more than this depending on the size of the deposit and the amount of the annual income. Some lenders even offer a professional range of products available for certain occupations that allow the lender to offer higher income multiples.

For a payment such as overtime, different lenders will calculate this in a different way. Some may be willing to use 100% of the overtime averaged over a certain such as three months or six months. Some may use a certain percentage of the overtime such as 65%.

What is the forces help to buy scheme?

The forces help to buy scheme is a government backed loan lending you up to 100% of the deposit for your property.

The way it works is the loan is an advance of your salary. You can borrow up to £25,000 or 50% of your salary, whichever is less. This money is then used as a deposit towards the property that you are buying and deductions are made in the future from your salary to pay back the loan.

Not only can the money go towards the deposit, but it can also go towards associated fees with buying a property. These may be fees such as legal costs, stamp duty land tax and fees to your lender.

This can be a great benefit to people working in the Navy that would not otherwise be in the position to buy themselves a property.

Some lenders even offer certain products designed to complement the forces help to buy scheme but please check with your mortgage adviser first as not all lenders will accept the scheme.

House owned by a person in the Navy

I’m in the Navy wanting to buy my first property on a residential basis, will I have to live in it?

There are some lenders that will allow you to buy your first property on a residential basis and rent it out immediately if you are in the armed forces or have a similar job where you are based on site.

This can be a major advantage to people that would not be in a position to put down a larger deposit on a buy to let property as it may allow them to put down a more affordable deposit, especially they are using the forces help to buy scheme.

When this may work well for you maybe when you are based on for ship or in the barracks and do not expect to be spending much time in the house. In this scenario, it may make financial sense to consider buying the property with a view to moving in in the future but for now finding a tenant that can pay you a rental income.

You may find by doing this that your tenant is able to cover the mortgage on a repayment basis that your debt against your property is reducing at the cost to another person.

There may be income tax to pay in this situation so always take professional advice from an accountant before proceeding.

Not all lenders will allow you to rent the property out immediately and it will be condition that you or a family member reside in the property following completion. Make sure that you are approaching the correct lenders, we would recommend that you contact a mortgage professional.

Make sure your mortgage adviser is regulated by the Financial Conduct Authority and showing on the FCA register.

If you think you have bad credit, best to look up to see if you have a low credit score on websites such as ExperianEquifax and Transunion. Check My File covers all of the three on one report.

I’m in the Navy, what age could I take my residential mortgage up to?

When thinking about the age that you want your mortgage to end, you should take into account your preferred retirement age.

for example, if you plan to work until age 65 and then wish to retire, it may not be wise to take your mortgage up to age 75 as you will have to work out how to make sure it is paid for these ten years.

In the Navy, it is not uncommon for people to retire early such as age 55 or 60. Many of these people are not ready to stop working entirely so they go on to other roles, possibly part time work or self employed in positions such as consulting.

In a situation like this, you may consider taking the mortgage past the date that you plan to retire from the Navy but please do get professional advice on this when setting up your mortgage.

depending on your plans, there are lenders that can lend all the way until age 80 based on your employed income but this may also depend on your occupation.

Happy mortgage broker giving free mortgage advice over the phone


I’m in the Navy looking to buy my first property, would I get a buy to let mortgage.

Although most lenders that offer buy to let mortgages require applicants to own a residential property first, there are however some lenders that can consider first time buyers for a buy to let property.

There are different factors that will come into account when your mortgage adviser is looking at which lenders may be available for you on a buy to let basis.

These will include factors such as the amount of your deposit, the amount of your annual income from the Navy, details of your debts and your monthly payments and your overall credit score.

A professional mortgage adviser would assess your full situation and then recommend a lender and product accordingly.

Bear in mind that if you rent a property out, you would need to declare this to HMRC.

I’m in the Navy and as a result I would find it hard to go to meetings about a mortgage, could an adviser this over the phone?

Absolutely, many people struggle to go to face to face appointments due to their work commitments and may find it’s easier to discuss the situation on the phone without the need to travel to the adviser’s location.

many mortgage advisers now work predominantly by telephone and e-mail to suit client’s convenience.

I NEED ADVICE work with National Mortgage advisors that can discuss your situation on the phone or over Zoom for your convenience.

To look for your new home, great websites include RightmoveZoopla and On The Market.

Sun shining on house bought with a Navy Mortgage


If you’re in the Navy looking for a mortgage, perhaps consider finding out more about the forces help to buy scheme to see if it suits you.

Remember that if you do not plan to live in your property immediately, there may still be an option to buy the property with a low deposit on a residential basis. Not all lenders offer this so taking professional advice is highly recommended.

I NEED ADVICE can arrange for a qualified mortgage professional to reach out to you to go over your options. If you would like this, please complete the contact form.

The information on this page is not tailored to any individual readers and should not be considered financial advice under any circumstances.

If you are seeking advice about a mortgage, you should consult a qualified professional.

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