*Sourced from Gov.uk.
By extending the Forces Help to Buy scheme, the UK government has further cemented its appreciation for the sacrifices made by military personnel, and its commitment to supporting their aspirations of homeownership. Let’s take a look at its history and, most importantly, what it entails.
The scheme was started back in 2014, and was introduced to provide flexible support to armed forces personnel by offering a larger advance of salary to help them achieve their property goals. The fact that it has now been made a permanent scheme proves just how popular it has been with military personnel. Since it began, the scheme has paid out more than £429 million to 28,000+ applicants.1
How does Armed Forces Help to Buy work?
Forces Help to Buy assists servicemen and women in overcoming the barriers associated with buying and owning a home. Military personnel can borrow a deposit of up to half their annual salary (a maximum of £25,000), interest-free to either put towards buying their first home, moving to their next home, or extending their current home.
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. With the Forces Help to Buy loan on top of the mortgage, you could be able to buy a property.
What eligibility criteria do I need to meet for the Forces Help to Buy scheme?
To be eligible for the Forces Help to Buy scheme, individuals must:
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Be in regular service
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Those serving in the Royal Navy must have been accepted onto trained strength
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Army and RAF personnel must have completed two years' service from the date of enlistment and be on trained strength
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Have at least six months left to serve at the time of application2.
It’s also worth noting that there are separate schemes to support armed forces personnel living in Wales (National Housing Pathway for Ex-Service Personnel) and Scotland (the Lift Open Market Shared Equity Scheme).
What are the benefits of the Armed Forces scheme?
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. This is because some of the monies raised from the loan can pay for your deposit or other costs, such as estate agency fees, stamp duty, and solicitor’s fees.
One notable advantage of the Forces Help to Buy scheme for armed forces is its recognition of the transient nature of military life. Flexibility is crucial for armed forces personnel, many of whom may need to relocate frequently due to deployments or changes in stationing. It also ensures that military families can take advantage of the scheme without the added stress of selling their current home.
Speak to a mortgage adviser
If you’re in the military and want to find out more Forces Help to Buy scheme, get in touch with one of our advisers. They will be happy to talk everything through with you in more detail, and get you started on your homebuying journey.
1 Gov.uk, 2023
2 Forces.net, 2022
Important information
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 on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.