Forces Help to Buy – Armistice day 2015
Forces Help to Buy
Forces Help to Buy – Armistice day was commemorated today to remember the war dead. A 2 minute silence was observed across the country on 11th hour of the 11th day of the 11th month – the time in 1918 when the guns fell silent along the Western Front in Europe.
Whilst we remember the war dead for what they did, we must also remember what our military does for us now.
As an RAF Veteran I know what it is like being in the forces. Buying a house is not necessarily at the forefront of your mind as your career can keep you very busy. The military supply accommodation in the block if you are single and if you are married you are entitled live in married quarters. What more could you want?
The main reasons why there is a low mortgage application rate from forces personnel is affordability and the logistics of home ownership. House prices have generally been increasing at a faster pace than salaries putting home ownership outside of most peoples affordability. The second issue is where do you buy and what happens to the property whilst you are serving in the military? You may want to buy near to where your unit is based but then what happens if you get posted? Whilst you can claim expenses you may just not want to sell. Some people want to move back to where they came from before they joined up. If you unit is not close then you have the problem of keeping the property empty or renting it out.
If you are interested in buying then there is a new scheme called “Forces Help to Buy” which can give you an interest free loan up to 50% of your annual salary or £25,000 whichever is higher. This loan can be used as deposit on your new property or some of it can go towards paying for professional fees such as solicitors.
This is a 3 year Pilot scheme and we are just over the halfway point in the scheme.
Update: The scheme has been extended until December 2018 and may be reviewed.
Check out our page on RAF Mortgages.
Also, check out our Q&A blog on RAF Mortgages
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