Forces Help to Buy Scheme (FHTB) Explained
Introduced in 2014 as an extension of the Help to Buy Equity Loan Scheme, the government aimed to address the low rates of home ownership among Tri-Service members, including the Royal Navy, Royal Marines, Army, and Royal Air Force.
Forces Help to Buy in Scunthorpe provides eligible service members with the opportunity to access this scheme, subject to meeting the specified criteria. This initiative aligns with the Ministry of Defence’s Defence Accommodation Strategy, which aims to ensure high-quality housing options for all personnel.
The strategy recognises the numerous benefits of home ownership for individuals with mobile careers, such as improved partner employability, stable education for children, and seamless transition as service members move out of active duty.
Initially set to conclude in 2019, Forces Help to Buy in Scunthorpe has been extended and transformed into a lasting policy, ensuring its availability to present and future service members. This enduring policy underscores the government’s commitment to supporting the housing aspirations of our armed forces.
How does the Forces Help to Buy Scheme work?
The Forces Help to Buy (FHTB) Scheme offers service personnel the opportunity to borrow up to 50% of their annual salary, with a maximum cap of £25,000, interest-free. This financial support can be utilised for purchasing their first home or upgrading to a new family home.
The scheme is currently open to all regular personnel who have completed the required length of service, excluding reservists and members of the Military Provost Guard Service.
Applicants should have at least six months of remaining service time at the time of application and meet the appropriate medical categories. It’s important to note that there may be exceptions to the criteria, particularly in cases involving unique medical or personal circumstances.
For detailed information about the Forces Help to Buy Scheme and related matters, please refer to the government guidance website. One of the key advantages of FHTB is that applicants are not required to have existing personal savings in order to participate and get onto the property ladder.
The funds can be used for various costs associated with purchasing a home, including the deposit, solicitors’ fees, estate agents’ fees, and stamp duty land tax.
Another positive aspect is that the majority of mortgage lenders readily accept funds obtained through FHTB for the purpose of meeting the deposit requirement.
Compared to other home buying schemes, the repayment terms for Forces Help to Buy in Scunthorpe are typically more flexible, spanning a period of 10 years.
How a Mortgage Advisor in Scunthorpe May Be Able To Help
We understand and appreciate the dedication and service of our military personnel nationwide. As a trusted and experienced mortgage broker in Scunthorpe, we are here to provide unwavering support and guidance throughout your home buying journey.
From the moment you reach out to us until the successful completion of your mortgage and even beyond, our committed mortgage advisor in Scunthorpe will be by your side, ensuring that your needs are met and that you achieve the best possible outcome.
To learn more about our services and how we can assist you on your home buying journey, we invite you to book a free mortgage appointment. We are eager to explore how we can help you make your homeownership dreams a reality.
Note; The Forces Help to Buy in Scunthorpe is not the same as the standard UK Help to Buy Scheme or Shared Ownership Scheme.
If you are a service member who currently owns a home and is considering utilising Forces Help to Buy in Scunthorpe for relocating, and you are aged 55 or above, it is worth exploring alternative options such as equity release in Scunthorpe or retirement interest only mortgages (RIO Mortgages).
These options can be beneficial, particularly considering the potential value of forces pensions in this scenario.
To understand the features and risks of equity release and lifetime mortgages, ask for a personalised illustration.
A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.
Help to Buy Mortgage Schemes
Help to Buy Mortgage Advice in Scunthorpe
After the unfortunate events of the 2008 credit crunch, the government needed something to try and bring the mortgage market back to prominence. One of the ways they did this, was introducing “Help to Buy Schemes” to help first time buyers onto the property ladder.
There are a various different Help to Buy Schemes available, some which may be more applicable to your circumstances than others. Here is a list of the schemes that may be useful for you.
Help to Buy Shared Ownership Scheme
The Help to Buy Shared Ownership Scheme was brought in to give mortgage applicants the ability to buy some of their property, and pay rent on the remaining percentage.
You will typically own between 25-75%, though this is not always the case. The remaining percentage is likely to be owned by a local authority, such as council or housing association. When you come into more funds, you may be able to increase the percentage you own.
The way that your payments work is that you will be paying both mortgage and rent. This basically means you are paying 100% of the ground rent and service charge on your home. This is still the case, even if you have the minimum share amount.
Bonus: Lifetime ISA
Though not technically a Help to Buy Scheme, the Lifetime ISA often is forgotten. It isn’t typically a first port of call, though it can be very handy for anyone looking to secure a property as a first time buyer in Scunthorpe.
It works as a type of savings account where your money can grow tax-free. The government will also top up your savings by a further 25%, so if you can meet the the £4,000 maximum amount, you will get a nice little £1,000 bonus.
You have to meet specific criteria in order to use the Lifetime ISA. More information about this can be found by clicking the link below or booking in to speak with a mortgage advisor in Scunthorpe.
Making an Offer on a Property in Scunthorpe
First Time Buyer Mortgage Advice in Scunthorpe
Once you are all ready to make your first offer on a property, it is important that the seller or the estate agent knows all about your personal and financial circumstances. Telling them all of your details give you a higher chance of being accepted.
Mortgage agreement in principle
99% of the times, you will never beat a cash buyer, lenders love less paperwork and a quick home buying process, which wouldn’t be the case if they had accepted someone wanting a mortgage. If you can’t afford to go down this route, to improve your chances of being accepted for a mortgage, you should get a mortgage agreement in principle prepared before you make your offer.
Having a mortgage agreement in principle at the ready shows that you have planned ahead and really want to secure this property. Whereas, if you don’t have one, your lender will know that you weren’t prepared and that you aren’t fully aware of how to apply, which could go against you.
This is why approaching a Mortgage Broker in Scunthorpe could really benefit you during the home buying process. Once you find a property that you are interested in making an offer on, Scunthorpemoneyman can quickly get you together with a mortgage agreement in principle. Depending on your situation, we can sometimes offer the same day service.
Don’t give up!
Buying a property is a negotiation process. If your first offer gets rejected, don’t worry, it’s perfectly normal to not be accepted first time round, you will get another chance to increase your original offer.
If your increased offer is also rejected, you may have to raise your offer again to match the asking price. If the property has just been listed on the property market, it’s unlikely that the seller is going to budge from their asking price. If you aren’t prepared to match their asking price, you may have to walk away and start looking for more properties.
To get a rough idea of what you may have to pay for your property, you should check out Zoopla and Rightmove and take a look “sold” prices of houses that are similar to the one that you are looking at. These prices are pulled from the Land Registry so they are reliable and can be used as a comparison.
You will sometimes see that some houses end up selling for less than their actual worth and this is because they could’ve been repossessed, sold to a tenant at a discounted price or an inter-family sale.
Speak to a Mortgage Advisor in Scunthorpe today
If you are still unsure about how to make an offer on a property and need help getting on the property ladder as a First Time Buyer in Scunthorpe, you should get the help off an expert Mortgage Advisor in Scunthorpe. They will do all they can in order to try and get that dream home of yours secured.
We are available 7 days a week, so if you ever have any mortgage questions, you know who to call. Receive a free mortgage consultation today with your expert Mortgage Broker in Scunthorpe.
