Military personnel who are homeowners may consider renting out their property to earn an extra income. If you are being deployed elsewhere, it may not be possible to live in your home, so renting out your house in the armed forces is often a good option.

You can either invest in your own property that you plan to live in in the future with a military mortgage, or consider going for a buy to let mortgage. There are many different products available, but a military mortgage is quite simply a standard residential property mortgage tailored to the needs of military personnel. A buy to let mortgage, on the other hand, refers to a property that has been purchased with the aim for tenants to live in it, and you the homeowner effectively become their landlord.

Buy to let mortgage rates tend to be higher than traditional military mortgages, and you will typically need a larger deposit. There’s also a number of legal requirements you will be expected to acknowledge in relation to both your tenants and your mortgage agreement, so entering into a buy to let mortgage is not something you should take lightly. Always seek professional advice if you have any questions.

Important considerations for landlords include ensuring you have an up-to-date Energy Performance Certificate, gas and electric safety checks have been carried out, you have a tenancy agreement for both parties to sign, and you have taken out landlords insurance in addition to your buildings insurance. It is also essential to provide working smoke alarms and carbon monoxide detectors for the health and safety of your tenants.

Are you still up for the challenge of becoming a landlord? Perhaps you are thinking about renting out your existing property? The first step is to contact your mortgage lender to find out if you will be allowed to rent out your home under your current mortgage agreement, or whether you need to remortgage onto a buy to let one. If you decide to go ahead without consulting your lender, the consequences could be very serious. You open yourself up to raised rates or extra charges, and you may even be asked to pay off your entire mortgage on the spot.

Renting out your house in the armed forces is therefore a huge decision. What’s more, any property used as security may be repossessed if you do not keep up your mortgage repayments. A good understanding of your financial commitments is absolutely essential. You should also be aware that you may need to deal with property issues or problem tenants, so if you are unable to be at the end of the phone, it might be worth exploring whether a letting agent could assist.

If you are renting out your house in the armed forces, Absolute Military is here to help you make sense of the insurance market and find the right solution for your specific requirements. We understand that one size does not necessarily fit all, so we will do our best to offer expert advice and personalised guidance every step of the way.

Contact Absolute Military for free military mortgage advice and they will refer you to their partners “Mortgages for Business’ who will guide you through the process and shortly after completion you will receive £250 cashback when you complete on your remortgage or purchase of a new home!