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Cameron launches talks to help military get mortgages

Prime Minister David Cameron has launched talks between mortgage lenders, the Treasury, housing minister Grant Shapps and representatives of the armed forces to help military personnel obtain a mortgage.

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The Guardian reports that Cameron, speaking in Afghanistan yesterday, says he wanted to ensure the “inevitable disruption” of military life did not cause greater problems for personnel and their families.

Military families often have their credit rating downgraded as they change addresses regularly.

The government will publish an armed forces bill, requiring ministers to update parliament every year on progress of the military covenant to strengthen the nation’s deal with the forces and their families.

The Ministry of Defence will also publish a report on the military covenant, commissioned by the coalition from Hew Strachan, professor of war history at Oxford University, which will highlight the growing problems facing military families in securing bank lending to buy a home.

The report says: “A growing percentage of service personnel can experience difficulty in obtaining mortgages because they have a poor credit history.”

A spokesman for the prime minister says: “The prime minister believes there is a real problem facing service families, through no fault of their own, and we want banks to get to the bottom of it.”

Cameron says: “Our service personnel make an extraordinary contribution to British life. Those serving on the front line risk their lives for us on a daily basis. So all of us – the government, the private sector and voluntary organisations – need to go the extra mile for them.

“I want to … make sure that the inevitable disruption associated with military life does not lead to greater problems. It is important that service personnel are able to get their foot on the housing ladder the same way as other people do … and that their children are given the support they need at school.”

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Comments
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  • anonymous 9th December 2010 at 3:31 pm

    Will it be easier to get life cover for these personnel than a mortgage post MMR?

  • Dan McGeehan 9th December 2010 at 3:23 pm

    Service personnel sacrifice a lot yet they have always struggled to get a mortgage due generally to their address history affecting their credit score. As long as they have a good payment profile they should not be penalised for having a BFPO address.

  • GMS 9th December 2010 at 1:38 pm

    It wasn’t so long ago that this so called governent decided that dual pricing was a commercial decision for lenders and that they would not tell the banks how to operate.

    Flagging support for the coalition means they now decide to get involved in lending policies.

    Hypocrites the lot of them.