The Armed Forces Help To Buy scheme was introduced to encourage homeownership amongst serving military personnel. It allows you to borrow an interest-free loan of up to 50% of your annual salary (or a maximum £25,000) to put towards buying a home. Since the scheme was launched, over 25,000 people have taken out a loan.
You can use the additional capital as a house deposit, to pay solicitor and estate agent fees, or in some cases to renovate a property. Plus, as it’s interest-free, you will only pay back what you borrow.
All mortgages have risks and benefits. Here are some key things you should know before applying for the Armed Forces Help To Buy scheme.
You might be able to buy your home sooner
Since the Forces Help to Buy loan can be used as your deposit (or towards your deposit), you might be able to get on the ladder sooner.
You have flexibility with how you use the loan
The interest-free loan can be used for either your house deposit, your solicitor’s or estate agent’s fees or in some cases for renovation.
You can buy any property type
As long as the full property price is covered by your deposit (including the Forces Help to Buy loan) and the standard mortgage, you can buy whatever property type you wish. A new build, flat or existing home - whatever you have your heart set on!
You must meet all eligibility criteria to qualify
In order to qualify, you must meet the all eligibility rules. This includes having more than 6 months left of service when you apply. If you leave the armed forces, or have a change in circumstance, this could prevent you from qualifying. Note that reservists are not eligible.
The loan could impact your mortgage affordability
You will have to pay back your loan monthly, which increases your expenses. This extra commitment of repaying the loan could affect how much you could borrow for your standard mortgage.
Maximum loan is capped at £25,000
You can’t borrow more than £25,000, or 50% of your salary. You’ll need to pay insurance to protect the loan
The amount you pay depends on the size of the loan.
Get into your very own home in 4 simple steps
In under 10-minutes we’ll check your eligibility for Forces Help To Buy as well as our other buying schemes. Plus you’ll get a personalised mortgage recommendation including interest rates and repayments.
Book a call with our mortgage experts to complete the qualification process, and we’ll cover off any questions you might have about Forces Help To Buy and any other schemes.
Once you’ve found a property, your dedicated advisor will undertake full affordability checks to prepare the mortgage application. Then we’ll submit it on your behalf!
During the conveyancing process, we’ll liaise with the seller and your solicitors to ensure a smooth purchase. We’ll also provide a free protection review for your insurance needs.
Explore our other schemes to discover alternative ways to buy
On your own
Purchase a new build home from a participating home builder with just a 5% deposit.See details
With a guarantor
Add some or all of a guarantor’s earnings to your household income to boost your mortgage affordability.See details
Unlock a gifted deposit from a loved one’s property to create a house deposit from scratch or top up your existing deposit.See details
You can be snug in your very own home in 4 simple steps