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Military families given a helping hand by the Government

Military families have been given a massive helping hand by the Government after it introduced the Armed Force’s Help to Buy (FHTB) scheme in April this year.

Home ownership has long been an issue for the armed forces. Levels have been low for years when compared to the wider society of the UK, and personnel that have decided to leave have frequently indicated that owning a home is one of the main reasons behind their decision.

The scheme allows servicemen and servicewomen to borrow 50 per cent of their salary, up to a maximum of &25,000, interest-free, to help buy their first home or to move to another.

The pilot scheme was introduced by Defence Secretary, Philip Hammond, and will run for a total of three years, brought in to combat the low rate of home ownership within the armed forces.

All regular personnel will qualify as long as they have completed their required length of service, have more than six months left to serve at the time they apply and meet the right medical categories.

Saying this, there are, of course, going to be occasions where a borrower’s medical or personal circumstances are justifiable – allowing them to still qualify for the scheme.

The loan is also repayable over a term of 10 years, which means that payments will be affordable and will not impact on the individual’s future borrowing chances.

It should be noted that whilst this scheme is running, Long Service Advance Payment (LSAP) has been frozen, but, if you currently have LSAP, you will be able to continue to make your usual monthly payments.

However, you can also apply to extend your loan to the &25,000 FHTB limit if you are moving home and are eligible under the new rules. If this was to happen, your LSAP loan amount will be consolidated into one payment under the FHTB scheme.

The Government has introduced new rules and schemes frequently over the past 12 months, and, though this one has been brought in specifically for members of the armed forces, there are many others available that could apply to you.

This is why it is important that you seek the advice of a professional mortgage adviser looking to buy your new home.

Adam Swalwell is from Carver Financial Service’s – for further information call: 01325 380088
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Your home may be repossessed if you do not keep up repayments on your mortgage.

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