in Defence

Forces Help to Buy scheme extended

Posted 28 October 2019 · Add Comment

The Forces Help to Buy scheme, which has lent over £280 million to over 18,000 armed forces applicants since its introduction in 2014, is to continue for an additional three years.

Right: The Forces Help to Buy scheme has been extended for a further three years.
Crown Copyright.


The scheme 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 amongst service personnel and will now be extended .

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.

Defence Secretary Ben Wallace 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.

"It has already proven very popular amongst the Armed Forces community and by extending it further we will be able to help many more service personnel make those first steps on the property ladder or expand their home to fit their family."

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.

Minister for Defence People and Veterans Johnny Mercer said: "The extension of the Forces Help to Buy Scheme is fantastic news for all those wanting to take that first step on to the property ladder.

"The Scheme helps to provide stability for our Armed Forces personnel and families, as a thank you for their commitment to their service for this country."

Last month the MoD announced the official launch of the Future Accommodation Model (FAM) pilot, which was rolled out at HMNB Clyde. FAM will provide financial support to service personnel at HMNB Clyde who want to rent or buy a home within a 50 mile radius of the base, giving personnel more choice where and with whom they can live.

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.


 

* required field

Post a comment

Other Stories
Advertisement
Latest News

IBA forecasts strong headwinds for aviation in 2020

The global aviation marketplace will encounter a wide range of challenges in 2020, according to Leatherhead based independent aviation consultant IBA, which released its 2020 Market Update today.

Heathrow set to transform the assistance experience

Disability campaigner Helen Dolphin MBE and experienced equality and inclusion regulator Keith Richards have both been named as co-chairs of the Heathrow Access Advisory Group (HAAG).

Serco's RNAS Culdrose team win Platinum Providers Award

Serco’s defence team, who support Leonardo and the Royal Navy at RNAS Culdrose, have become the latest of Cornwall’s Council’s Platinum Providers for work placements.

Ports cyber security guidance updated

Maritime Minister Nusrat Ghani has visited Ports of Plymouth and Southampton to see first-hand how the maritime industry is future-proofing itself, starting her tour on Monday as refreshed cyber security guidance was published for

BAE Systems appoints Ravi Ravichandran as CTO, Intelligence & Security

BAE Systems Inc. has named Dr Ravi Ravichandran as vice president and chief technology officer (CTO) for the company’s Intelligence & Security sector.

Type 26 frigate HMS Glasgow more than half built

Construction of the future HMS Glasgow, the lead ship of the Royal Navy’s future Type 26 frigates, is advancing at BAE Systems’ Govan shipyard.

ODU 0201311219
See us at
VIDSE BT1605060320FIL20BT010819260720S&P BT241019040320AMAS BT0312270220