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Armed forces Help to Buy scheme extended until 2022

Posted: 13th February 2020   In: Residential Conveyancing

The Forces Help to Buy scheme, designed to help military personnel get on the housing ladder, has been extended until the end of 2022.

The scheme has lent £280m to more than 18,000 armed forces applicants since its introduction in 2014.

It allows military personnel to borrow a deposit of up to half of their annual salary, interest free, to contribute towards buying a home, building an extension on their current one or moving to another property.

The programme has proved popular among service personnel and will now be extended for a further three years.

The Forces Help to Buy scheme was set up to provide more flexible support to personnel by offering a larger advance of salary to facilitate a home purchase.

A government spokesman said: “The extension of this scheme demonstrates the value we put on our Armed Forces and means service personnel can continue to realise the ambition of owning their own home or borrowing to extend.”

Regular personnel can borrow up to 50% of their salary (capped at £25,000), interest free, to buy their first home, extend their current one or move to another property on assignment or as their needs change. The loan can be used towards a deposit and other costs such as solicitor and estate agents’ fees and can be repaid over a period of 10 years.

The scheme forms a part of the Armed Forces Covenant, which is a promise from the nation that those who serve or who have served, and their families, are treated fairly and not disadvantaged.

The MOD also sub-lets some surplus vacant houses to the general public to generate income through short-term lets on the private market. The properties are rented at market rates and are available at 60 sites.

Please contact Jackie Hand or Gary Baber if you would like advice about the legal aspects of buying or selling a home

Posted by: Jackie Hand
Residential Conveyancing
Luton Office