Veteran Loan Treatment – Can The UK Learn From America?

For many veterans, returning from battle isn’t the homecoming parade they anticipated. According to the West London Mission, up to 6% of all homeless people come from a military background. As such, it’s more important than ever for veterans to establish what their options are when purchasing a home and staying financially independent. Today, there are many schemes to help veterans find their way into a home in the UK; establishing which is the most suitable is important in the long run, and looking to the US could provide inspiration for support schemes.

Mortgage loans

America has offered a supportive environment for their veterans that the UK can learn from. This comes from two factors. Firstly, as USA Today outline, bond yields and the nature of current interest rates mean that mortgages are being offered, and remortgaged, to the benefit of homeowners. This applies to the various veteran loan schemes too: for instance, the Hero Loan, and the VA Mortgage Lender scheme. These loan schemes offer government-guaranteed loans to help veterans ensure that they can obtain housing. The UK is currently lacking in this department.

Support services

It’s important to note that the UK does provide support services for veterans leaving service. Already, councils offer priority service to homeless veterans to get them housing, and there is a service to help veterans find appropriate housing when leaving service – something that the CAB notes is especially important for veterans with a disability. What can be done for veterans in terms of solid financial benefit is less clear, however, and is an area of policy development for the government and lenders.

Credit unions

An old-fashioned but resurgent area of credit lending that is providing aid to veterans is the credit union. Increasingly, these services are providing the type of credit lines and interest that US services offer, albeit without the guarantor system that the government offer. A step in the right direction, this offers a way for veterans to obtain the advice and credit lines they need to settle down on return.

Taking this advice and taking a measured approach to the loan-finding process will help to create a sustainable financial plan in the long term. Veterans have many resources available to them, and establishing which are the most useful will not only save money, but guarantee financial independence. In the long-term, that should see more veterans kept off the streets.