In 2014, following the success of the Help to Buy Equity Loan Scheme, the government introduced an innovative initiative aimed at addressing the low rates of homeownership among members of the UK’s armed forces.
This initiative, known as the Forces Help to Buy Scheme, extends its benefits to individuals serving in the Tri-Service, which includes the Royal Navy, Royal Marines, Army, and Royal Air Force, provided they meet specific eligibility criteria.
Furthermore, the scheme aligns with the Ministry of Defence’s Defence Accommodation Strategy, which strives to ensure that everyone under its purview has access to high-quality housing solutions.
Embedded within this strategy is the acknowledgment of the significant positive impact that homeownership can have on individuals with inherently mobile careers.
This impact encompasses partner employability, stable educational opportunities for children, and continuity for service members as they transition from active duty.
Although originally slated to conclude in 2019, the Forces Help to Buy Scheme in Lincoln has seen extensions, ultimately transforming it into a permanent policy. This ensures that current and future service members can continue to benefit from its provisions.
The Forces Help to Buy (FHTB) Scheme operates in a straightforward manner. Serving personnel have the opportunity to borrow up to 50% of their annual salary, with a maximum cap of £25,000, and this loan does not incur any interest charges.
These funds can be utilised to purchase either a first home or a new one. Eligibility for this scheme extends to all active service members who have met the requisite service duration, are not reservists or part of the Military Provost Guard Service, have at least 6 months remaining in their service when applying, and meet the relevant medical criteria.
It’s important to note that there may be exceptions to these criteria, especially when considering unique medical or personal circumstances. For comprehensive details regarding Forces Help to Buy in Lincoln and related information, you can refer to the government guidance website.
One of the most appealing aspects of FHTB for many individuals is that you do not need to have existing savings to utilise this scheme for purchasing a home. These funds can also be used towards your deposit, as well as covering various associated fees such as those for solicitors, estate agents, and stamp duty.
From a deposit perspective, the good news is that virtually all mortgage lenders accept funds from FHTB. Furthermore, the scheme offers more relaxed terms compared to some other housing assistance programs.
While the Help to Buy Equity Loan, for instance, typically required repayment within 5 years, Forces Help to Buy in Lincoln allows for repayment within a more accommodating 10-year timeframe.
As a dedicated and dependable mortgage broker in Lincoln, we deeply value our role in helping clients across the UK with their mortgage requirements.
Our primary goal is to provide unwavering support and guidance throughout the entire process of obtaining a mortgage for your home purchase.
From the moment you make contact with a member of our Lincolnmoneyman team, all the way through to the successful conclusion of your mortgage process and even beyond, your dedicated mortgage advisor in Lincoln is dedicated to ensuring a smooth and stress-free experience.
We give top priority to addressing all your needs and concerns along the way. To discover more about how we can help you, we encourage you to arrange a free mortgage consultation.
During this consultation, we will carefully assess your unique circumstances and offer expert advice on the necessary steps. Moreover, if feasible, we will work diligently to secure an excellent mortgage deal tailored to your specific requirements. Your satisfaction and peace of mind are our utmost concerns!
Note: The Forces Help to Buy is not the same as the standard UK Help to Buy Scheme in Lincoln or Shared Ownership Scheme in Lincoln.
For currently serving service members and homeowners in Lincoln who are aged 55 or older and are contemplating the utilisation of Forces Help to Buy, it’s worth considering alternative options such as equity release in Lincoln or retirement interest-only mortgages (RIO Mortgages).
These alternatives can be particularly beneficial because forces pensions may offer advantages in these specific financial scenarios.
To understand the features and risks of equity release in Lincoln and lifetime mortgages, ask for a personalised illustration.
A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.