RAF Mortgage Q&A
RAF Mortgage Forces Help to Buy Q&A
Q: I am in the RAF and would like to know if I qualify for Forces Help to buy scheme, how much I can borrow and how the process works when buying a house?
A: If you are in the RAF and have over 6 months service remaining you can apply for the Forces Help to Buy Scheme through the Joint Personnel Administration (JPA) system. You can borrow up to 50% of your annual salary with the total amount you can borrow capped at £25,000. In other words, 50% of your annual salary or £25,000 whichever is the lower.
Forces Help to Buy scheme is an interest-free loan but you may still be taxed by the inland revenue on the interest-free element as a benefit in kind.
Before you apply for the interest-free loan through the Forces Help to Buy Scheme we will take a look at your circumstances and advise how much you can borrow from a mortgage lender on an affordability basis.
First thing is first! Before you apply for the “Forces Help to Buy” scheme we need to collect some details from you. This is so that we can advise you better about getting a mortgage. We will ask for personal details about you, your partner (if it is a joint mortgage application), income and expenditure as well as what objectives you have in mind. We collect this information and more on a form called a fact-find. This data is used to determine the advice we give to you.
We will tell you how much you can borrow and place your mortgage subject to you getting approval for the Forces Help to Buy.
Forces Help to Buy has now been extended until December 2018.
Once we have placed the mortgage for you and all of you ducks are lined up you can look for a property to buy. Once you have found the property we will complete your full mortgage application. Once the mortgage application has been underwritten by the mortgage lender a survey of the property will take place. This ensures that the property is in a mortgageable condition. Once the survey has been done and there are no issues to deal with then you will receive a mortgage offer from the lender. This offer is a promise by the lender to lend the money needed to you to buy the property subject to your solicitor or legal conveyancer fulfilling the legal obligations as set out by the mortgage lender.
Once this has been done the mortgage and house purchase will complete.
Check out our post on RAF Mortgages