This helpful scheme was first introduced in 2014, not long after the success of the Help to Buy Equity Loan scheme. Before deciding whether the scheme would stick around or not, it undertook a 3 year pilot. This pilot went extremely well so the Government chose to keep the scheme up and running until December 2022 where it will receive a review. Hopefully this great scheme sticks around for the foreseeable future.
The scheme’s aim is to assist regular armed forces personnel get themselves onto the property ladder. If you are struggling to get the ball rolling with your mortgage application, this scheme could be for you.
The Forces Help to Buy scheme allows 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 need a change. There is a low rate of homeownership amongst the armed forces, this scheme was brought forward to try and help this rate rise.
Please click here to the Government site for more information.
Here are the requirements for accessing the Help to Buy scheme:
As an experienced Mortgage Broker in Nottingham, we have come across scenarios where the applicant hasn’t met the required categories yet has still accessed the scheme. This does sometimes happen and medical factors or personal circumstances may come into play.
You can borrow up to 50% of your annual salary, however, this total is capped at £25,000. As a Mortgage Broker in Nottingham, we usually see that this amount will be put towards the deposit. You can use this sum for other things though, we’ve seen applicants use it to cover estate agency and solicitor fees.
In order to apply for the Armed Forces Help to Buy scheme, you’ll need to use the Joint Personnel Administration system. Once you have found your way there you can seek advice on your application through your Chain of Command and personnel agency.
If you are looking to purchase a home through a different method, you can always take a look at other Help to Buy Mortgage schemes available or you could take the traditional mortgage route, it’s completely up to you!
If you are unsure about what you are after and what is available, you should take advantage of our free mortgage consultation. Get in touch with your Help to Buy Mortgage Advisor in Nottingham.