Forces Help to Buy Scheme
18th August 2019
If you are a member of the armed forces and are thinking of purchasing a residential property with the assistance of a loan from the Forces Help to Buy Scheme then we can assist you with this.
What is the Forces Help to Buy Scheme?
This scheme allows qualifying service persons to borrow, interest free, either 50% of their annual salary (including all forms of Recruitment and Retention pay) or £25,000 whichever is lower, this being repaid over 10 years through their monthly salary. The loan can be used to purchase a first home, or assist in moving to another property as circumstances change.
One important thing to consider is that if you are using tis type of loan to purchase a property where an existing property is being sold then the allowance that you might be eligible to receive may be capped at a certain amount.
What can Forces Help to Buy be used for?
To be eligible the property to be purchased must:
• Be a first home (unless it is to be purchased due to an assignment elsewhere, or due to extenuating family or medical
• It must be located within the United Kingdom, Channel Islands or Isle of Man.
• To be used immediately to live in by a service person, and/or their immediate family.
• The property cannot be a mobile home, houseboat or caravan
• The property must be a residential property and it cannot be a commercial or buy-to-let property.
The money provided is eligible to be used in relation to all the fees associated with moving house, such as the purchase deposit, estate agents, land registration, stamp duty land tax and solicitors’ fees.
Who is eligible under the Forces Help to Buy Scheme?
The scheme is available to regular persons serving in the Armed Forces who are first time buyers or those who are required to move due to a change in circumstances or assignment elsewhere.
To be eligible for the Forces Help to Buy Scheme the following criteria to qualify must apply:
• The applicant must be in regular service.
• The applicant must have a minimum of six months’ service left to run at the time of the application.
• The applicant must have met certain medical categories
• The applicant must have served for two years from your enlistment date
• The applicant has not owned any house, in the last 12 months, within 50 miles from the house that you wish to purchase under the Forces Help to Buy Scheme.
It is important to note that just because you are getting a loan from the Forces Help to Buy Scheme you may also be able to use the other Government Help to Buy Schemes meaning you could also use these to assist you with your purchase.
If you are also using a Mortgage to purchase the property then it is very important that you inform your Mortgage Lender that you are using a Forces Help to Buy Scheme Loan to purchase the property to confirm that they support them as some Mortgage Lenders do not.
If you meet all of the criteria, then as part of your property purchase you will need a Solicitor/Conveyancer to assist you in liaising with the Forces Help to Buy Scheme team to assist you in your purchase.
We have great experience in purchasing properties for clients in the Armed Forces using the scheme loans with great success and if you have applied for a Forces Help to Buy Scheme Loan please do get in touch and we can advise you of the process and procedure for using the Loan as part of your purchase.
For more information about the Forces Help to Buy Scheme click here.
Call us on: 0191 4555361 or email : email@example.com for more information