What is the Forces Help to Buy scheme?

The Forces Help to Buy scheme enables serving personnel to apply for an interest-free loan of up to half their salary at a maximum value of £25,000. This loan can be used to cover some of the costs of purchasing a property. This may be used as part of a deposit or in payment of solicitors’ and estate agents’ fees.

Since the scheme began in 2014, over 66,000 applications have been submitted, with payments being made to close to 28,000 applicants, as reported by the UK government. As a result of this, there has been a 16% increase in home ownership amongst Service Personnel.

Who is eligible to apply?

The scheme was initially introduced to support service personnel with the ambition to enter the property ladder, who otherwise would struggle to do so. Therefore, it is primarily tailored towards first-time buyers or individuals and their families who need to move due to assignment elsewhere or additional reasons.

There are a number of criteria that applicants must fulfil to be eligible for the scheme. They include the following:

• Personnel must be in regular service when submitting their application
• Minimum 6 months left to serve at time of application
• The relevant medical categories have been met
• The scheme does not apply to reservists or members of the Military Provost Guard Service

There are some exceptions to these criteria. Applicants should refer to JSP 464  volume 1, part 1, chapter 12 from the Ministry of Defence for more information.

How to apply for the Forces Help to Buy scheme

Serving Personnel will have access to a Joint Personnel Administration (JPA) account that can be accessed through the Defence Gateway of your Unit’s JPA suite. The application can be completed through the self-service platform.

Recent changes to the scheme

The Forces Help to Buy scheme was launched in April 2014 with the aim of increasing the opportunity of purchasing a property and creating a stable home for service personnel. The scheme has been available across recent years but was officially made permanent at the start of this year on 1st January 2023.

Redefining this scheme as an enduring policy was a positive change that could support more than 5,000 serving personnel and their families each year.

Minister for Defence People, Veterans and Service Families, Dr Andrew Murrison, said this about the update:

“I am delighted to announce that the Forces Help to Buy scheme has been made permanent. This recognises the unique challenges that Service Personnel and their families face and gives the opportunity to purchase a property to provide stability during their service.”

Work with a mortgage broker to secure your mortgage.

Alongside your interest-free loan, support is also available from certain mortgage providers. Some lenders offer bespoke mortgage products that work best in conjunction with the Forces Help to Buy scheme. To access these products, it is important to be transparent during your introduction with the lender.

To simplify this process, working alongside a mortgage broker such as Eden Hawk Financial Solutions will eliminate any back-and-forth exchange between lenders whilst locating specialist mortgage products. By letting us know that you are interested in using the Forces Help to Buy scheme from the outset, we can inform any potential mortgage lenders, whilst identifying the right mortgage deal for you.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE.