What is the FHTB?
The Forces Help to Buy (FHTB) scheme is designed for first-time buyers or for those needing to move to another property, either because they are assigned elsewhere or because of certain extenuating family or medical circumstances.
How does it work
The scheme allows service personnel to borrow up to 50% of their annual salary (pre-tax) up to a maximum of £25,000.
Any borrowed amount over £10k is treated as a ‘benefit in kind’ and therefore a nominal amount of tax will be due.
Who is eligible?
All regular personnel who:
- have completed the pre-requisite length of service
- are not a reservist or a member of the Military Provost Guard Service
- have more than six months left to serve at the time they apply
- meet the right medical categories
However, there may be exceptions to these criteria, especially where there are special medical and personal circumstances.
How do I apply?
The application process is simple. You just need to apply to the Joint Personnel Administration. Armed Forces Financial Services can take care of the rest of the mortgage process for you!
Can I still leave the Armed Forces even though I’ve taken a FHTB loan?
Short answer is yes. But there are a few things to be aware off.
Any outstanding balance should ideally be paid before leaving. If this isn’t possible you will need to continue making payments once you’ve left the forces.
Also, if you’re due to receive a resettlement grant, any FHTB loan balance will be automatically deducted from it.
Any costs to be aware off?
There is a small amount of insurance to pay each month (circa £7 pm depending on size of loan)
Does the property have to be a new build?
No. Unless you are also using the government loan too.
When does it stop?
The Government has made this permanent – so it won’t!