Armed Forces Mortgage Schemes Exeter – 2025 Guide

With rising property prices and inflation still affecting affordability, many service personnel are asking how Armed Forces mortgage schemes in Exeter can help them buy a home in 2025. Whether you’re stationed at RMB Chivenor, RAF Brize Norton, or based in the city itself, understanding your mortgage options is crucial. This guide draws on trusted UK mortgage authorities like MoneyHelper, UK Finance, and the Ministry of Defence to help you navigate your choices with confidence. Here’s what you need to know in 2025.

1. What is the average rate for Armed Forces mortgages in the UK?

As of early 2025, the average mortgage rate for Armed Forces personnel is broadly in line with standard residential mortgage rates, typically ranging between 4.5% and 5.5% for fixed-rate deals, depending on the term and deposit size. According to the Bank of England, the average two-year fixed mortgage rate stood at 5.2% in January 2025, reflecting ongoing inflationary pressures and cautious lender sentiment.

However, some lenders offer preferential rates or more flexible criteria for military personnel. For example, Nationwide and Halifax both consider Forces Help to Buy (FHTB) as part of your deposit, which can improve your loan-to-value (LTV) ratio and potentially reduce your rate. MoneySavingExpert notes that specialist lenders may also offer discounted rates or waive certain fees for service members, especially those using government-backed schemes.

In Exeter, where average property prices are around £310,000 (according to Rightmove Q1 2025 data), securing a competitive rate is essential for affordability. Always compare rates across lenders and consider using a mortgage broker familiar with Armed Forces schemes.

2. What factors affect approval for Armed Forces mortgages?

Lenders assess Armed Forces mortgage applications using standard affordability criteria, but there are key differences. Your income stability, deployment history, and use of Forces Help to Buy can all influence approval. According to MoneyHelper, lenders will typically consider your basic pay, specialist pay, and allowances, but may apply stricter scrutiny if you’re regularly deployed overseas or on short-term contracts.

UK Finance highlights that lenders may also assess your credit history, existing financial commitments, and whether your posting is permanent or temporary. Some lenders, like NatWest and Barclays, have dedicated Armed Forces underwriting teams who understand the nuances of military income and lifestyle.

If you’re stationed abroad or have a BFPO address, ensure your lender accepts these, as not all do. Having a UK-based solicitor and bank account can also help smooth the process. Exeter-based personnel may find regional lenders more familiar with military borrowers, particularly those near Devonport or other bases.

3. How much deposit is needed for Armed Forces mortgages?

Most lenders require a minimum deposit of 5% to 10% for Armed Forces mortgages, depending on the scheme and lender. However, the Forces Help to Buy scheme allows eligible service members to borrow up to 50% of their salary (up to £25,000) interest-free to use as a deposit. According to Gov.uk, this scheme is available to regular personnel who have completed the required length of service and meet medical and disciplinary criteria.

For example, if you’re purchasing a £300,000 property in Exeter, a 5% deposit would be £15,000. With Forces Help to Buy, you could cover this entirely without needing personal savings. Halifax and Santander both accept FHTB as a valid deposit source, which can significantly reduce your upfront costs.

Some lenders may require a larger deposit if your credit history is less than perfect or if you’re buying a non-standard property. Always confirm with your lender whether they accept FHTB and how it affects your loan-to-value ratio.

4. What fees apply to Armed Forces mortgages?

Armed Forces mortgages typically involve the same fees as standard residential mortgages, including arrangement fees, valuation fees, legal fees, and possibly early repayment charges. According to Money.co.uk, average arrangement fees range from £999 to £1,499, although some lenders waive these for military borrowers.

Legal fees can range from £850 to £1,500 depending on the solicitor and property value. If you’re using the Forces Help to Buy scheme, you may also need to pay for additional legal documentation, although the Ministry of Defence does not charge interest or fees for the FHTB loan itself.

Some lenders, like HSBC and NatWest, offer fee-free mortgage products or cashback options that can offset initial costs. Be sure to factor in all fees when comparing deals, and ask your broker if any military-specific discounts are available.

5. Which lenders currently offer Armed Forces mortgages?

Several high-street and specialist lenders offer Armed Forces mortgages or accommodate military-specific needs. According to UK Finance, the following lenders are known to support service personnel:

• Halifax – Accepts Forces Help to Buy and considers military allowances as income.
• Nationwide – Offers flexible underwriting for Armed Forces and accepts BFPO addresses.
• Barclays – Provides standard residential mortgages with military-friendly policies.
• NatWest – Has a dedicated team for military applicants and accepts FHTB.
• Specialist brokers – Some intermediaries work exclusively with military clients and can access niche lenders.

In Exeter, many local brokers are familiar with Armed Forces schemes due to the proximity of military bases. Working with a broker who understands your employment structure can improve your chances of approval and help you find the most suitable lender.

6. How does an Armed Forces mortgage compare with other mortgage products?

Armed Forces mortgages are not a separate product type but rather standard mortgages with flexible criteria or support schemes tailored to military personnel. According to MoneyHelper, the main differences lie in lender policies, eligibility for Forces Help to Buy, and how income is assessed.

Compared to Help to Buy or shared ownership, Armed Forces mortgages offer more flexibility in property choice and ownership structure. Unlike shared ownership, you own 100% of the property from day one. However, you may not benefit from subsidised rent or government equity loans.

When compared to standard mortgages, Armed Forces borrowers may face fewer restrictions if using FHTB, but must ensure the lender accepts this scheme. In Exeter, where demand for property remains high, having access to a larger deposit via FHTB can make your offer more competitive.

7. Can I get an Armed Forces mortgage if I am self-employed or have bad credit?

Yes, but your options may be more limited. According to the FCA’s mortgage lending rules, self-employed applicants must typically provide two to three years of accounts or SA302s. If you’re self-employed within the military community (e.g., running a business while in the Reserves), lenders will assess your income stability and trading history.

For those with bad credit, specialist lenders may still consider your application, especially if the issues were minor or historic. MoneySavingExpert notes that missed payments, defaults, or CCJs can reduce your options, but some lenders are more lenient if you can provide a larger deposit or show improved financial behaviour.

Using a broker experienced with military and adverse credit cases is highly recommended. They can help identify lenders who accept non-standard income or credit histories, particularly in regions like Exeter where housing affordability is a concern.

8. How long does the Armed Forces mortgage process take?

The process typically takes 6 to 12 weeks from application to completion, depending on the lender, property, and legal work involved. According to UK Finance, the average mortgage approval time in 2025 is around 18 working days, but military-specific factors can add complexity.

If you’re using Forces Help to Buy, you must apply through your chain of command and allow 4 to 6 weeks for approval. The Ministry of Defence advises submitting FHTB applications early to avoid delays. Once approved, the funds are paid directly to your solicitor.

In Exeter, where demand for housing is high, delays may occur due to local conveyancing bottlenecks or valuation backlogs. Working with a solicitor and broker familiar with FHTB and military timelines can help streamline the process.

9. Are there government schemes to help with Armed Forces mortgages?

Yes, the main government-backed scheme for service personnel is Forces Help to Buy (FHTB). According to Gov.uk, this allows eligible military personnel to borrow up to £25,000 interest-free to use towards a deposit, legal fees, or other home-buying costs.

In addition, Armed Forces personnel may be prioritised for other schemes, such as First Homes (which offers properties at a 30%-50% discount to first-time buyers and key workers) and shared ownership. The Ministry of Defence also operates the Joint Service Housing Advice Office (JSHAO), which provides independent housing advice to service members and their families.

In Exeter, local authorities may offer additional support or priority access to affordable housing