I have just helped one of my old friends and a fellow Royal Engineer, purchase his first home using the current Forces Help to Buy scheme.
As an ex Royal Engineer, I know what it is like to leave the forces with nothing but a bag full of old clothes and the latest TV, all stuffed into the most expensive car you can afford. So it is great to know that these days there are schemes in place to bridge the gap between the armed forces and civilian life.
The Forces Help to Buy scheme allows serving members of the armed forces to borrow up to 50% of their salary, up to a maximum of £25,000. These funds are transferred to a solicitor and can be used towards a house deposit or for any of the other legal costs associated with the purchase of a new home. The funds that are borrowed must be paid back directly from your salary over a 10-year period
Below is a brief overview of the criteria you must meet.
- Completed a pre-requisite length of service (different for each service)
- Have more than 6 months left to serve at the time of application
- Meet the right medical requirements
You can apply for this loan via your Joint Personal Administration system or through your chain of command.
If you’re considering applying to the Forces Help to Buy scheme, it is important that you know how much you can borrow in addition to this i.e. your mortgage. A broker can provide an independent view of the market, facilitate a decision in principle, and let you know what other costs you could incur. If you'd like to discuss this, please get in touch.