If you are a member of the armed forces then you might have experienced problems when trying to apply or even find a mortgage to buy a new property. It’s common knowledge that many high street lenders don’t have schemes which are accessible to people who serve. There could be many reasons for this but there is something available called the forces help to buy and this is a scheme that can get you on the property ladder and help you get started with your own home.
It can be hard to secure a property or home if you travel abroad a lot or move around as this could have an adverse affect on your credit rating which in turn makes it harder for you to get a mortgage.
So what is it?
The forces help to buy was originally designed to last just 3 years from April 2014 however such was it’s success that it’s been available ever since and has helped thousands of members of the armed forces into their new home. One main aspect is it’s interest free as well so it’s a scheme that is fair and a genuine help and doesn’t abuse the applicants with high or unfair interest rates. The present scheme runs until the end of 2022 so you have plenty of time to make use of this.
You could borrow up to 50% of your salary to a maximum of £25,000 to be used as a deposit and any legal fees such as solicitors, this helps you get access to far more lenders and mortgage schemes then you normally would plus the more deposit you place down the cheaper your repayments could be. It’s an interest free advance over 10 years. It’s available to regular personal to help them buy their first home or move to a new location (this must be 50 miles or more from your current property) however sometimes there are exceptions to this rule.
Your next question is are you eligible?
• To qualify or be eligible for the forces help to buy you must be able to fulfil the following criteria:
• Be in regular service
• If in Naval service you must have bene accepted onto trained strength
• If you’re in the RAF and Army you need to have completed 2 years service from the date of enlistment and also be trained on strength for example completed phase 2 training.
• You need to have at least 6 months left to serve at the time of application
• You can’t have owned a property within 50 miles of the new one you want to buy within the last 12 months
There are some exceptions to the qualifying rules above so it’s worthwhile speaking to your chain of command to see if you might be eligible.
So how do you apply?
Its easy to apply for the forces help to buy as you can simply apply online through the Joint Personnel Administration System. Speak to your chain of command as they will be able to help you with your application. Here at Squared Commercial Finance we have experts who have helped 100’s of members of the armed forces us ethe scheme to buy their new home. We can take care of everything from start to finish and guide you all the way.
When do you have to pay it back?
You need to pay the money back by the time you leave the forces or within 10 years whichever comes first. You could remortgage the property later to pay off the debt. Some people pay off the loan with their lump sum they receive when leaving the armed forces.
Your loan amount is divided over ten years and you pay back that amount monthly (you can choose to make overpayments if you wish to do so). You can also opt to start making the loan re-payments straight away too, six months after receiving it, or in your final ten years of service.
Forces Help To Buy
Most major mortgage lenders accept the FHTB loan to be used as the deposit for your intended new home. The forces help to buy scheme is primarily designed for first-time buyers or those needing to move to another property, either because they have been assigned elsewhere or as a result of certain extenuating family or medical reasons. The property does not have to be a new build also unlike some other schemes. Speak to the team at Squared Commercial Finance and we can help you apply for the forces help top buy so you can get on the property ladder and secure your home.