Buying a home is a huge financial commitment, and it can be even more difficult when you’re in the Armed Forces. However, the government offers several mortgage schemes which are specifically designed to help members of the military buy their own homes. These mortgages come with a range of different features which can make them more affordable, and they are available to both those who are buying their first home and those who are moving up the property ladder.
If you’re thinking of buying a house whilst in the Armed Forces, then read on to find out more about the government’s mortgage schemes and how they can help you.
How this scheme works
The government is launching a £200 million scheme to assist military personnel getting on the housing ladder. The Forces Help to Buy program enables troops and their families to borrow up to 50 percent of their pay, interest-free, to buy a house or relocate due to family changes.
The pilot program, which began in April 2014 and continues through December 2019, targets the low rate of homeownership among members of the military. According to the Ministry of Defence, just 33 percent of service personnel own their own homes, compared to 63 percent of civilians.
The scheme is available to all regular soldiers, sailors, airmen, and marines, as well as reservists who have served at least 12 months on continuous full-time service. Families are also eligible for the program if they are relocating due to a posting.
How to apply for a Forces Help to Buy Mortgage Scheme
If you’re interested in applying for the Forces Help to Buy scheme, you can do so by filling out an application form which is available on the Ministry of Defence website. Once you have submitted your form, you will need to provide proof of your income and assets, as well as evidence of your service in the Armed Forces.
You will also need to have a good credit history to be eligible for the scheme. If you have any outstanding debts or County Court Judgments (CCJs) against your name, you may not be able to apply for the scheme.
Once your application has been approved, you will be able to access the funds which you can use to buy a property or make improvements to your home. The interest-free period for the loan is five years, after which time you will need to start making repayments.
What are the benefits of the scheme?
Several benefits come with the Forces Help to Buy scheme. Firstly, you will be able to access up to 50 percent of your pay as a loan, which can be used to buy a property or make improvements to your home. This can be a huge help if you’re struggling to save up for a deposit on a mortgage.
Another benefit of the scheme is that it is interest-free for the first five years. This means that you will only need to start making repayments after this period, making it more affordable.
Lastly, the scheme is available to both first-time buyers and those who are looking to move up the property ladder. This means that even if you’ve bought a home before, you can still take advantage of the scheme.
So if you’re thinking of buying a house whilst in the Armed Forces, be sure to speak to a member of our specialist mortgage team to get more information and to start your application.