Many members of the armed forces are not aware that the government has made military family’s top priority to ensure extra help is provided to enable armed forces personnel to purchase their homes.
Sheri-Anne Mizon, Attwaters Jameson Hill Residential Property Partner has an extensive knowledge of acting for members of the armed forces and describes the benefits of this significant initiative:
The Defence Secretary has recently launched the Forces – Help-to-Buy Scheme, through which the government has allocated £200 million to help serving personnel to borrow up to 50% of their salary (up to a maximum of £25,000.00) interest free. This will be used as a deposit to buy your first home.
If successful in your application, you will be ‘advanced’ a loan from your salary. This will then be repaid, interest free, over a period of 10 years,
This scheme has been put in place to try to address and balance the problems experienced by the armed forces personnel in obtaining a mortgage. The difficulties arise due to regular relocation moves which have a negative effect on credit ratings.
The government has also worked closely with the credit agencies and Royal Mail to ensure that living on a base or serving abroad does not disadvantage any mortgage applications.
The Forces – Help to Buy Scheme is aimed at first time buyers. However, if you are already a home owner you will be eligible to apply for the Nationwide Help-to-Buy Scheme. This scheme provides a 20% equity loan to enable you to proceed with your purchase. The equity loan would be an interest free loan for a period of 5 years.
The scheme is available to all regular personnel regardless of their marital status or length of employment. This scheme replaces the previous scheme which was limited to those on lower incomes and with 4-6 years continuous service. There are no such limitations on the new scheme.
The Forces – Help-to-Buy scheme is being launched on 1st April 2014, however the Nationwide Help-to-Buy scheme is available now. Each area has a Help-to-Buy agent who will be able to discuss the options and schemes available to you.
If you have any questions regarding the Forces – Help-to-Buy scheme:
Sheri-Anne Mizon, Attwaters Jameson Hill Residential Property Partner has an extensive knowledge of acting for members of the armed forces. She and her team will ensure your transaction is dealt with professionally, efficiently and as quickly as possible whilst supporting you and your family at every stage.