Scheme offering an interest-free loan towards a property deposit for service personnel.
The Forces Help to Buy (FHTB) scheme is a government initiative designed to assist military personnel in purchasing their first home or moving to a new property as their needs change. Launched in 2014, the scheme allows eligible service members to borrow up to 50% of their annual salary, capped at £25,000, interest-free. This loan can be used towards a deposit and other associated costs, making it easier for military leavers and veterans to secure a mortgage. The FHTB is particularly beneficial for those transitioning to civilian life, providing financial support and stability during a significant life change. Repayments are typically made over a ten-year period through salary deductions, ensuring manageable financial planning. This initiative reflects the government's commitment to supporting the Armed Forces community in achieving home ownership and easing the transition from military to civilian life.
Who is eligible?
Eligibility for the Forces Help to Buy (FHTB) scheme is primarily extended to regular service personnel who have completed a minimum of 12 months of service. This includes those in the Army, Royal Navy, and Royal Air Force. Applicants must have at least six months of service remaining at the time of application to ensure they can meet the repayment terms. The scheme is open to both first-time buyers and those looking to move to a new property due to changing personal circumstances. Importantly, the FHTB is not available to reservists or those who have already left the Armed Forces. Additionally, applicants must not have any outstanding disciplinary issues or be under notice of discharge. This initiative is designed to provide financial assistance to those who have served, helping them secure a stable home environment as they transition to civilian life.
What benefits does this provide?
- Interest-Free Loan: Forces Help to Buy (FHTB) offers an interest-free loan to help military personnel purchase their first home or move to a new property.
- Loan Amount: Eligible service members can borrow up to 50% of their annual salary, with a maximum limit of £25,
- - Repayment Terms: The loan is repayable over a period of up to 10 years, with monthly deductions from salary.
- Eligibility: Available to regular service members who have completed a minimum of two years of service.
- Flexibility: The loan can be used for various purposes, including buying a new home, moving to a different property, or making home improvements.
- Application Process: The application is straightforward and can be completed online, with support available from the Joint Service Housing Advice Office (JSHAO).
- No Impact on Credit Score: The loan does not affect the applicant's credit score, making it a risk-free financial support option.
How do I apply?
- Eligibility Check: Ensure you meet the criteria, such as being in regular service and having completed the required service length.
- Access JPA: Log into the Joint Personnel Administration (JPA) system, which is accessible through the MOD intranet.
- Application Form: Navigate to the FHTB section and complete the online application form, providing necessary personal and financial details.
- Chain of Command Approval: Submit your application for approval through your chain of command. They will review and endorse your request.
- Receive Decision: Await the decision, which will be communicated through JPA. If approved, you will receive details on the loan amount and repayment terms.
- Legal and Financial Advice: Seek independent legal and financial advice to understand the implications of the loan.
- Complete Purchase: Use the loan towards your property purchase, ensuring all legal and financial processes are followed.
Summary
The Forces Help to Buy (FHTB) scheme is a valuable government initiative designed to support UK military personnel in purchasing or renovating a home. Offering an interest-free loan of up to 50% of annual salary, capped at £25,000, it eases the financial burden of securing a mortgage. The scheme is open to regular service members with at least 12 months of service and six months remaining, excluding reservists and those with disciplinary issues. Repayments are made over ten years via salary deductions, ensuring manageable financial planning. The application process is straightforward, accessible through the Joint Personnel Administration system, and requires chain of command approval. This initiative underscores the government's commitment to aiding military leavers and veterans in achieving home ownership, providing financial stability, and facilitating a smoother transition to civilian life.
Useful Links
- GOV.UK Forces Help to Buy: The official government page provides detailed information on the scheme, eligibility criteria, and how to apply.
- Forces Help to Buy
- MOD Defence Discount Service: Offers insights into various benefits available to military personnel, including housing schemes like FHTB.
- MoneyForce Home Buying: A resource for financial guidance tailored to military personnel, including information on home buying and FHTB.
- Home Buying
- Royal British Legion Housing Advice: Provides advice and support for veterans and service leavers on housing options and schemes.
- Housing Advice
- Army Families Federation Housing: Offers information on housing options and support available to army families, including FHTB.
- Housing
- Naval Families Federation Housing: Provides guidance on housing for naval families, including details on the FHTB scheme.
- Housing
- RAF Families Federation Housing: Offers information and support for RAF families regarding housing and the FHTB scheme.
- Housing
