The Forces Help to Buy scheme was introduced in April 2014 and has now been extended to 2018 due to its popularity, helping over 10,000 service personnel buy their own homes. The scheme is designed to help members of the British Forces get on the property ladder by borrowing a portion of their salary that can be put towards a deposit or the other costs of purchasing a property.
- HOW DOES THE SCHEME WORK?
Regular Armed Forces personnel who join the scheme can borrow up to 50% of their salary, interest free, to put towards a property or any of the moving costs involved.
- HOW MUCH CAN YOU REALLY BORROW?
The scheme allows borrowing of up to 50% of annual salary, but this is capped at £25,000.
- WHEN DO YOU HAVE TO PAY THE MONEY BACK?
The scheme is interest free and designed to be paid back from the borrowers salary over 10 years
- IS IT ONLY FOR FIRST TIME BUYERS?
The scheme is often used by first time buyers but can also be used if you are moving from one property to the next, although there are a few conditions around this, including a minimum distance move of 50 miles.
- ARE YOU ELIGIBLE?
The basic criteria of eligibility for Forces Help to Buy states that you must: be in regular service, accepted onto a trained strength (if serving in the Royal Navy), have completed a minimum of 2 years serving from the date of enlistment (if serving in the Army or Royal Air Force), have at least 6 months left to serve at the time of application, and have not have owned a property within 50 miles of the proposed house purchase in the last 12 months.
- HOW DO YOU APPLY?
You can apply for the loan online through the Joint Personnel Administration System, and seek advice on yoru application through your Chain of Command or personnel agency. If you are dealing with a mortgage advisor, they may also be able to help you through the process and give you further information.
You can find out more about the Forces Help to Buy scheme here. If you’re thinking of buying a new property, don’t forget that we’ve teamed up with L&C, the UK’s leading fee free mortgage broker, to provide you with a wider financial advice service – L&C are experienced with helping military personnel buy their own homes, including securing Forces Help to Buy mortgages. Find out more here.