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.
Date Last Edited: January 23, 2024
