The Forces Help to Buy (FHTB) scheme was recently made permanent by the government as part of an “enduring commitment to supporting Armed Forces”.
Under the scheme, Service Personnel can borrow up to 50% of their gross annual salary up to a maximum of £25,000 to encourage and support homeownership.
The government said the loan is interest free, repayable over a maximum of ten years, and is open to most regular personnel with more than 12 months’ service.
Minister for Defence People, Veterans and Service Families Dr Andrew Murrison said he was “delighted” at the scheme being made permanent, adding:
“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.”
The FHTB pilot initially began in 2014 and will become an enduring Ministry of Defence policy on 1 January 2023. It is expected that approximately 5,000 Serving personnel will use the scheme per year to help them with home ownership.
As well as supporting Service Personnel and their families financially, the scheme strengthens the accommodation offer, improves geographic stability for families, and helps to prepare Service Personnel for transition to civilian life.
