What is the Forces Help to Buy scheme?
Defence Secretary, Ben Wallace, has recently announced that the current Forces Help to Buy scheme that helps military personnel to get on the property ladder, has been extended to the end of 2022.
The scheme was started back in 2014, and was introduced to provide flexible support to staff by offering a larger advance of salary to help them achieve their property goals. Originally due to end in December 2019, we’re thrilled to hear that the scheme has now been extended proving to be extremely popular, lending over £280 million to over 18,000 applicants.
How does Armed Forces Help to Buy work?
Military personnel can borrow a deposit of up to half their annual salary (a maximum of £25,000), interest-free, to put towards either buying their first home, moving to their next home, or extending their current home.
The great thing about the scheme is that you don’t need to have saved any money already yourself, so you can get on the property ladder without having any current savings. You’re probably thinking, ‘how is this possible?’ Well, some of the monies raised from the loan that you’ll receive via the scheme can pay for your deposit or other costs, such as estate agency fees, stamp duty, solicitors fees etc. We’ve found that most major mortgage lenders will accept the loan towards the deposit for a new home, which is great news for forces personnel.
As you can imagine, Forces Help to Buy relieves a lot of the pressure for many looking to either get on, or climb up the property ladder. Plus, the loan can be paid back over a 10 year period so there’s no imminent pressure to pay it back straight away.
So, as long as you’re a military personnel, all that’s left to do is get a mortgage. With the Forces Help to Buy loan on top of the mortgage, you’ll be able to buy a property!
Speak to a mortgage adviser
By speaking to a qualified mortgage adviser, you can find out more information about the Forces Help to Buy scheme.
When it comes to mortgages, we like to make things as easy as possible. We do this by taking care of the whole mortgage application process. From getting you a Decision in Principle, to filling out any paperwork and chasing solicitors, we’ll be there for you until the day you get the keys to your new home.
One last thing - it’s important not to confuse Forces Help to Buy with the other Help to Buy scheme which is specifically for buying a new build property.
Because we play by the book we want to tell you that…
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.