UK building societies will allow armed forces personnel to rent out their homes when going abroad without switching to a buy-to-let mortgage.
UK building societies will allow armed forces personnel to rent out their homes when going abroad without switching to a buy-to-let mortgage.
The move will be supported by 23 building societies and was led by Building Societies Association head of mortgage policy Paul Broadhead.
The move followed a roundtable at 10 Downing where Philip Dunne, minister for defence procurement, challenged financial institutions to support the armed forces.
Michael Fallon, defence secretary, 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 to help our servicemen and women get a better mortgage deal.”
The 23 societies on board in no particular order are Nationwide, Yorkshire, Coventry, Skipton, Principality, West Brom, Newcastle, Cambridge, Monmouthshire, Newbury, Ipswich, Darlington, Darlington, Scottish, Tipton & Coseley, Loughborough, Mansfield, Bath, Chorley, Hanley Economic, Buckinghamshire, Penrith and Cumberland.
Andrew Baddeley-Chappell, head of mortgage strategy & policy at Nationwide said: “Recognising that armed forces personnel face a unique set of circumstances because of the requirements of the vital role they undertake, including being posted either abroad or to another part of the UK during their service, Nationwide ensures that, should they wish to let out a property they currently own, they are able to do so with minimum restrictions – For some time we have waived application fees or additional interest rates usually associated with letting, and also allowed personnel to let their property, even on a residential mortgage, from inception.”
