Forces Help to Buy (FHTB)

Originally set to end in 2019, the Forces Help to Buy Scheme has seen multiple extensions. The government has now made it a permanent policy, ensuring it remains available to all service members indefinitely.

The Forces Help to Buy Scheme enables Regular Serving Personnel to borrow up to 50% of their annual salary, up to a maximum of £25,000, interest-free.

This advance can be used towards a deposit for purchasing a home, as well as solicitor and estate agent fees. In certain extenuating circumstances, it may also be used to adapt an existing property to meet changing family needs.

To learn more, you can check out the government Own Your Home website.

No, Forces Help to Buy (FHTB) differs from the Help to Buy Equity Loan.

Forces Help to Buy is exclusively tailored for members of the armed forces, providing them with an interest-free loan of up to 50% of their annual salary (capped at £25,000) to facilitate home purchases or relocations.

Conversely, the Help to Buy Equity Loan, once available nationwide, now solely operates in Wales.

This scheme was designed for the general public, offering an equity loan of up to 20% (40% in London) of the property’s value, interest-free for the initial five years. It targeted first-time buyers and those seeking new-build properties.

Forces Help to Buy can indeed be used to fund moving home for members of the armed forces.

This government initiative offers an interest-free loan of up to 50% of a service member’s annual salary, capped at £25,000, which can be applied towards various expenses associated with the home moving process.

Whether service personnel are seeking to downsize, upgrade to a larger home, or move to a different location due to a change in deployment or personal circumstances, Forces Help to Buy can provide valuable financial help to people in need.

This includes covering costs such as solicitor’s fees, estate agent fees, and any necessary renovations or adaptations to the new property.

By offering this support, the scheme aims to ease the financial burden of moving home for armed forces personnel, allowing them to focus on their professional duties and personal lives with greater peace of mind.

With Forces Help to Buy, you don’t need a deposit to benefit from this scheme, unlike many other mortgage options available.

This feature is particularly advantageous for members of the armed forces who may not have substantial savings for a traditional deposit.

Unlike conventional mortgages, where a deposit is typically required, Forces Help to Buy offers an interest-free loan of up to 50% of a service member’s annual salary, capped at £25,000.

This loan can be a significant financial boost, helping service members cover various expenses associated with purchasing a home or moving to a new property.

By eliminating the need for a deposit, Forces Help to Buy opens up homeownership opportunities for service members who might otherwise struggle to save for a deposit while serving.

This accessibility can make a significant difference, allowing individuals and families to achieve their homeownership goals more easily and without the initial financial burden of a deposit.

You need to pay back Forces Help to Buy over a period of ten years, with repayments made through payroll deductions. This structured repayment plan ensures that the loan is repaid gradually and conveniently, spreading the financial commitment over an extended period.

Forces Help to Buy is specifically designed for active members of the armed forces, typically utilised during their service years to help with purchasing a home or moving to a new property. That said, once individuals transition into retirement, they may not be eligible for this scheme anymore.

Retirees may explore alternative options such as equity release, other retirement mortgage options or downsizing to access funds for housing needs.

Equity release allows homeowners to unlock some of the equity tied up in their property without the need to move, providing a source of additional income or a lump sum.

Additionally, retirees may consider utilising their forces pensions or other retirement savings to support their housing needs. These pensions often offer stable and reliable income streams, making them valuable assets for funding retirement housing.

It’s essential for retirees to carefully consider their financial situation and speak with a financial advisor to explore the most suitable options for their individual circumstances.

The Forces Help to Buy Scheme is available to regular service personnel who have completed a minimum of 12 months of service.

This includes individuals serving in the Army, Navy, Air Force. Eligibility extends to both those considering their first home purchase and those seeking to move to a new property.

You must also fulfill certain medical criteria. These criteria ensure that individuals who may have medical needs are still able to access the scheme’s benefits.

Meeting the medical eligibility criteria underscores the scheme’s commitment to supporting service members in various circumstances, including those with specific medical requirements.

The primary goal of the scheme is to promote home ownership opportunities for eligible Service Personnel. It seeks to tackle the low rate of home ownership within the armed forces while aligning with the objectives of the Defence Accommodation Strategy.

Recognising the benefits of home ownership, especially in a career marked by frequent home moves, the scheme aims to provide service members with housing stability and financial security.

A mortgage broker can provide valuable help with Forces Help to Buy by guiding service members through the application process, ensuring they meet eligibility criteria, and helping them understand the financial implications.

They can also help service members explore alternative financing options and advise on the most suitable mortgage products tailored to their individual circumstances.

Additionally, mortgage advisors can offer ongoing support and mortgage advice, ensuring service members make informed decisions throughout the homebuying journey.