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According to the website GOV.UK there is a relatively low rate of home ownership in the armed forces. To help and encourage service men and women to get on the property ladder, move home due to reposting or change their home as family needs demand, the Ministry of Defence have introduced the Forces Help to Buy (FHTB) Scheme.
The new scheme allows members of the armed forces to borrow up to 50% of their annual salary (maximum of £25,000), interest free, as a deposit for their purchase or remortgage.
The pilot scheme, which will run for the next three years, starting today, is not designed to reduce the amount of personnel in service accommodation, this is still an option if you wish, but to aid members of the armed forces in making that leap on to the property market.
“Through our work on the new employment model and the armed forces covenant we are continually striving to make improvements to those aspects of life outside of service which we know can be adversely affected by life in service.
“In particular we are keen to address the demand for greater stability, including access to home ownership, and an improved ability to exercise choice in the way our people live their lives.
“And so it is a hugely positive step forward that we are able to introduce the Forces Help To Buy scheme today, a year ahead of our original plan.”
So who is eligible?
There are a number of different lenders that will already stated that they will accept the Forces Help To Buy Scheme as a form of deposit without being punitive. However,as always it is important to find a lender and product that suits your overall needs. At DALES we will search the market to find the right deal for you. Why not contact us today on 01636 870 069 to discuss how we can help or why not look at our best buy tables Mortgage Best Buys.
- You must have completed a pre-requisite length of service.
- You must have more than six months remaining to serve
- Meet the right medical categories, however, extenuating medical and personal circumstances will be considered.
Philip Dales Dip PFS Certs CII (MP & ER)
Philip Dales is principal at DALES Independent Financial Advisers, based in Newark and Nottingham. He has been an adviser for over 17 years helping many clients, including those in the forces with all aspects of financial planning, and retirement. For more information on this or any other aspect of financial advice contact t: 01636 870 069.
If you would like more information on this scheme and/or obtaining a mortgage, please contact us by email at firstname.lastname@example.org or by telephone on 01636 870 069 for more information or have a look at our web site www.pndales.co.uk Please note that this article does not represent advice, and the Forces Help To Buy Scheme, may not be suitable for you. P N DALES Ltd is authorised and regulated by the Financial Conduct Authority.