If you’re serving in the Armed Forces and thinking about buying your own home, the Forces Help to Buy scheme could help you with some of the upfront costs.
The scheme allows eligible regular service personnel to borrow up to 50% of their annual salary, up to a maximum of £25,000, interest-free. The money can be used towards buying a property, including costs such as your deposit and legal fees.
Here’s what you need to know about Forces Help to Buy and how it can fit into the home buying process.
To learn more about how we can help, simply call us today on 0800 138 0458, or reach out through our website.
Forces Help to Buy (FHTB) is an interest-free advance of salary designed to help eligible service personnel buy a home.
It can be used to:
The scheme became permanent in January 2023, so it is now an enduring policy rather than a temporary scheme.
You can borrow up to 50% of your annual salary, up to a maximum of £25,000.
For example, if your annual salary is £40,000, you could potentially borrow up to £20,000. If your salary is £60,000 or more, the maximum available would be £25,000.
The advance is interest-free.
The money can be used towards the costs associated with buying a home, including:
The amount you can borrow and what you can use it for will depend on your individual circumstances and the current scheme rules.
The scheme is available to eligible regular service personnel.
Generally, you must:
There can be exceptions to some of the eligibility requirements in certain medical or personal circumstances.
The current eligibility requirements should always be checked before making financial or property commitments.
No. Although Forces Help to Buy can help service personnel buy their first home, it can also be used in certain circumstances to help someone move to another property.
This could include moving because of a new assignment or because of certain family or medical circumstances.
The property must generally be intended for your own occupation or that of your immediate family. The scheme is not intended to be used to purchase a buy-to-let property or another second home.
Yes. FHTB can be used towards the deposit and other costs associated with buying a property.
Many mortgage lenders accept Forces Help to Buy as a source of deposit funds, but you should check with your mortgage adviser and lender before proceeding.
It’s important to understand how the FHTB advance will work alongside your mortgage and other borrowing when working out what you can afford.
Applications are made through JPA self-service using the Forces Help to Buy application process.
You should obtain the necessary approval before committing yourself to a property purchase.
Once you know you are eligible and understand how much you may be able to borrow, you can start looking at your mortgage and property options.
The FHTB advance is normally repaid through your salary.
Repayments can be spread over a period of up to 10 years, depending on the circumstances.
You can also make overpayments if you want to repay the advance sooner.
If you leave the Armed Forces before the advance has been fully repaid, you will still need to repay the outstanding balance. Depending on your circumstances, this may be recovered from your terminal benefits.
It’s therefore important to consider your future plans and make sure you understand the financial commitment before using the scheme.
Yes. However, Forces Help to Buy is not limited to new build properties.
You can use the scheme when buying an eligible property on the open market, subject to the scheme rules and your mortgage lender’s requirements.
If you are considering a new build, there may also be separate discounts or incentives available to serving personnel from individual housebuilders.
Using FHTB does not remove the usual legal steps involved in buying a property.
Once you have found a home and had an offer accepted, your solicitor or conveyancer will deal with the legal work involved in the purchase.
This will usually include:
Your solicitor will review the contract and property information and identify any issues that need to be addressed before you exchange contracts.
Depending on the property, searches can include local authority, drainage and water and environmental searches.
Additional searches may be appropriate depending on the location and type of property.
Your solicitor will check that the seller has the legal right to sell the property and identify any restrictions, rights or other matters affecting it.
Your solicitor will work with your mortgage lender to satisfy its legal requirements and deal with the mortgage documentation.
Once the legal work, mortgage and other requirements are complete, you can exchange contracts. This is the point at which the purchase becomes legally binding.
On completion, your solicitor will transfer the purchase money to the seller's solicitor and you become the legal owner of the property.
You can then collect the keys and move into your new home.
Buying a home is a major financial commitment, particularly when you are combining a mortgage with an FHTB advance.
Before proceeding, consider:
Remember that your solicitor can advise you on the legal aspects of the property purchase, but they cannot provide regulated mortgage or financial advice.
Buying a home can be complicated enough without having to navigate the process around your service commitments.
Our team can guide you through the legal side of buying your home, explaining what needs to happen at each stage and dealing with the paperwork on your behalf.
We can help with:
Whether you're a first-time buyer or moving to a new home, we'll explain the process in plain English and keep you updated as your purchase progresses.
If you're considering buying a property through the Forces Help to Buy scheme, get in touch by calling 0800 995 6040, emailing help@switalskis.com or using the form below.
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The conveyancing process for new builds can be daunting, especially for first-time buyers, or those unused to dealing with new build properties. We're here to make it straightforward for you. We'll answer any questions you have, break down the complexities and keep you in the know at every stage so you can make decisions with confidence.
We understand that buying a new home is both exciting and nerve-wracking. We're here to listen to your concerns, get to grips with your specific needs, and offer advice that's tailored just for you. To us, you're not just another client; you're someone taking a big life step, and we're committed to making the process as smooth as possible.
When it comes to new build conveyancing, you want a team with experience and expertise. With Switalskis, you're in good hands. We've got a wealth of knowledge about the complexities of property transactions and a proven track record in helping people just like you secure their dream homes.
When it comes to new build conveyancing , you want a team with experience and expertise. With Switalskis, you're in good hands.
For more information about our conveyancing services, or to get your quote, call us today on 0800 138 0458 or send us a message through our website.