Lenders praised for service to armed forces
The Armed Forces Covenant Interim Report said: “The government is pleased to note that a number of mortgage lenders already allow service personnel to retain their residential mortgage status on vacation and letting of their property following an assignment move, rather than enforcing a change to a buy-to-let mortgage.”
The Armed Forces Covenant is the “contract” that exists between a nation and its armed forces and what they can expect from each other.
Nationwide responded to the report saying it had introduced the support scheme for service personnel.
It also said it accepted deposits via the long service advance of pay scheme, established by the Ministry of Defence under which the government provides a loan for the deposit on a property.
Martyn Dyson, head of mortgages at Nationwide, said: “We welcome the government’s Armed Forces Covenant Interim Report and its recognition of the role mortgage lenders play in supporting Service personnel.
“We will continue to work with the rest of the sector to raise awareness and understanding of the needs of our members in the Armed Forces.
“We believe its right that our industry sets out its support for military personnel.
“Together we need to offer practical initiatives that help to remove financial worries from these brave people and their families, particularly when they are risking their lives daily to support us and ours.”