The Forces Help to Buy scheme enables servicemen and servicewomen to borrow up to 50% of their salary, interest free, to buy their first home or move to another property on assignment or as their family’s needs change. This amount is capped at a maximum of £25000. The total amount borrowed will be divided over 10 years and a payment deducted from your salary each month.
All regular personnel who have completed two years of service and have more than 6 months left to serve at the time they apply are eligible. The money must be paid back by the time you leave the forces or within 10 years, depending on which comes first. Depending on your length of service remaining you may be able to choose when to start paying back this loan.
The Forces Help to Buy Loan is to be used for the purchase of property, for the immediate occupation of the serving individual or their family members and cannot be used for a buy to let property.
The pilot scheme, which launched in April 2014 and has now been extended to 31 December 2022, aims to address the low rate of home ownership in the armed forces. Servicemen and servicewomen can apply for the loan online through their Joint Personnel Administration system and can seek advice on their application through their Chain of Command and personnel agency.
See more at: https://www.gov.uk/guidance/forces-help-to-buy
If you would like to discuss this scheme in more detail then please do not hesitate to get in touch and speak to one of our advisers. Call us or book online for an appointment.