Forces Help to Buy Scheme – FAQs

What is the FHTB?

Designed to help armed forces personnel get on the property ladder the scheme is aimed at supporting first-time buyers and those who have to move home because they are assigned elsewhere

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.

The loan can be used towards the deposit of property or anything else involved within the purchase process e.g legal, surveyors or land registration fees.

The loan is interest free and can be paid back over 10 years!

Am I eligible?

As we said early, the scheme is primarily designed for first-time buyers or those needing to move to another property due to assignment or as a result of extenuating family or medical circumstance.

The property must be used as yours (or your family’s) immediate occupation. An exception to this rule would those in overseas postings.

To apply you must:

  • Be in regular service
  • Have served for at least 1 year
  • Have at least 6 months left to serve at the time of application

How do I apply?

The application process is simple. You just need to apply on the Joint Personnel Administration. Armed Forces Financial Services can take care of the rest of the mortgage process for you!

How much do I have to pay back?

You’ll have to pack back whatever you borrow, but it’s a 0% interest!! The loan amount is divided over ten years and you pay back that amount monthly (you can choose to make overpayments).

It’s up to you when you start making the repayments. It can be straight away, six months after receiving it, or in your final ten years of service.

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 other costs to be aware off?

Although there is no interest on the loan 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!