Armed forces staff posted overseas can now rent out their homes without higher mortgage costs or altered terms after a deal between the Government and the British Bankers’ Association.
The deal will affect almost 265,000 people in the UK and abroad, including the families of armed forces members.
Where a lender does not already permit, members of Armed Forces who rent out their homes during deployment will be allowed to keep their existing mortgage and not change to a buy-to-let mortgage.
This will avoid any potential increased rate of interest or charges.
Barclays, HSBC, Lloyds Banking Group, Santander UK, Royal Bank of Scotland and Nationwide will all offer the support.
Defence secretary Michael Fallon says: “This is a welcome first step from the major banks and financial institutions to help our servicemen and women get a better mortgage deal.”
BBA chief executive Anthony Browne says: “Members of our armed forces work all over the world to look after us, so it’s only right that we look after them.
“The extra support proposed by the banks and the Ministry of Defence will make sure service personnel and their families are not disadvantaged for working aboard and make their mortgages and credit history fairer.”
Barclays claims to be the first bank to roll out this policy.
Barclays personal and corporate banking chief executive Ashok Vaswani says: “We recognise the personal sacrifice made by our armed forces, so it’s right that our mortgage policy ensures they are not are penalised.
“Having had this in place for several years we are delighted to see other lenders now joining us.”