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Forces Help To Buy Mortgage
Take your first step and receive advice about your options when taking out the Forces Help To Buy Scheme.
DJB Mortgages offers specialist advice in the Forces Help To Buy Loan Mortgage Scheme.
At DJB Mortgages, we specialise in the Forces Help To Buy Mortgage Scheme. The Government announced in December 2022 that the scheme would run permanently, allowing more service personnel the chance of home ownership. DJB Mortgages is here to discuss how the scheme works and ensure you find the best lender for your Forces Help To Buy Mortgage.
How does the Forces Help To Buy scheme work?
Forces Help To Buy allows service personnel to borrow an interest-free loan, the equivalent of half their annual salary – before tax – and up to a maximum of £25,000.
The loan's purpose is to help towards the deposit of the new home but can also be used towards the additional buying costs such as legal work, stamp duty, surveyors, etc.
Most major mortgage lenders accept the Forces Help To Buy as a deposit for your intended new home.
Who can apply for the Forces Help To Buy scheme?
The Forces Help To Buy scheme is primarily designed for first-time buyers or those needing to move to another property, either because they are assigned elsewhere or due to specific extenuating family or medical circumstances.
The home must also be used for the applicant's primary residential dwelling or that of their immediate family. An exception applies to those in overseas postings at the time of application and purchase.
Forces Help To Buy is not intended to purchase a ‘buy-to-let’ or any other second property.
How much do I have to pay back?
It will all depend on how much is borrowed. But the loan amount is divided over 10 years; you pay back that amount monthly and can choose to make overpayments. However, you will pay 0% interest on the loan, and this monthly loan payment will be used towards your mortgage affordability as an ongoing commitment.
Can I leave the Armed Forces after receiving Forces Help To Buy mortgage loan?
Yes. However, if you are due any terminal benefits, any outstanding Forces Help To Buy loan balance will be deducted automatically from it.
Where possible, any outstanding balance should be paid before leaving.
If this cannot be achieved, you will have to continue making the monthly payments once you have left.
Does the Forces Help To Buy property have to be a new build home?
Unlike previous Government Help To Buy schemes, the Forces Help To Buy Mortgage does not need to be on new build properties only. This allows you to view homes marketed through traditional routes such as Estate Agents.
How to apply for the Forces Help To Buy loan?
Service personnel are to apply for Forces Help to Buy (FHTB) on JPA through the Self-Service Application for Forces Help To Buy. However, this is only for the 10-year interest-free loan; your mortgage application is to be applied through the usual route of using a Mortgage Broker or going directly to a bank.
