Forces Help to Buy
Forces Help to Buy (FHTB) is a scheme introduced by HM Government to assist serving HM armed forces personnel to enter the UK housing market. The FHTB scheme went live on 1 April 2014, in a pilot scheduled to last for three years and now extended to the end of 2018. HM Government have allocated £200 million to the Forces Help to Buy project.
The MOD have observed the difficulties faced during service in entering the UK housing market and several specialist schemes have been devised to assist, the most recent of which is the Forces Help to Buy Scheme.
The FHTB is part of the New Employment Model (NEM) programme. This initiative is the first NEM component to be implemented. NEM aims to offer more stable home lives for the majority of Service personnel and their families; a key part of this is helping personnel buy their own home. However, discounted Service accommodation will continue to be available to those who are eligible. The scheme rules explain the circumstances when those who use the FHTB scheme will be entitled to Service accommodation.
The aim of the FHTB scheme is to support first-time buyers and those who have to move home because they are assigned elsewhere. Where personnel have a change in their family circumstances – for instance, they need another bedroom because a child is on the way – or there are medical reasons why their current home is unsuitable, the scheme can also help them move or extend their existing properties. A loan cannot be used for the purchase of a second property.
The Forces Help To Buy Scheme is aimed at supporting first-time buyers and those who have to move home because they are assigned elsewhere. Regular service personnel will be able to borrow 50% of their salary up to a maximum of £25,000. This loan is interest free and is repayable over 10 years. The loan cannot be used for the purchase of a second home or buy to let property. The Forces Help to Buy loan can be used both for the purchase of the property and also for associated costs such as survey or solicitor costs.
Are you eligible for Forces Help to Buy?
For the Forces Help to Buy Scheme you must:
* Be in regular service,
* Have served 2 years or more,
* Have at least 6 months left to serve at the time of application, and
* In the last 12 months have not owned a property within 50 miles of the proposed purchase (exceptions will apply).
An application for Forces Help to Buy can be made by serving personnel through the JPA (Joint Personnel Administration) system
How Armed Forces Lawyers can help you get on the housing ladder
We offer a 20% discount on our conveyancing legal costs for all HM Armed Forces personnel and can provide a personal and professional service to ensure your transaction goes ahead as quickly and smoothly as possible. We are experienced in all aspects of conveyancing including the latest scheme available to servicemen and servicewomen to assist financially in property purchases – the Forces Help to Buy Scheme which has been introduced in line with the principles of the Armed Forces Covenant.
If you want advice on Forces Help to Buy just email us at conveyancingsupport@birdandco.co.uk.
Further information on Forces Help to Buy
- The HM Government MOD website: https://www.gov.uk/forces-help-to-buy
- The New Employment Model page: https://www.gov.uk/new-employment-model
Tip: This can be used in conjunction with the Government Help To Buy scheme.
Armed Forces Lawyers will be pleased to help you get your Forces Help to Buy conveyancing arranged, with defence and forces discounts available for members of the forces, veterans and their families.
