The Government’s Forces Help to Buy scheme has celebrated its two year anniversary, as loans to service personnel have reached the £100m mark.
The scheme allows military personnel to borrow up to half of their salary towards buying their first home or moving up the property ladder. Since its launch, more than 6,642 personnel have bought homes, with almost 2,000 more applicants approved and awaiting completion of purchases.
The MOD unveiled the initiative in April 2014; two years on more than 6,642 personnel have bought homes and almost 2,000 more applicants have been approved and are awaiting completion of purchases.
The scheme was immediately popular – 3,220 benefitted within the first six months and by March 2015, more than £40m had been given to applicants.
As announced in October 2015 – the 18th month mark of the scheme – the MOD had loaned more than £75.7m to almost 5,000 personnel.
Under the Armed Forces Covenant, the MOD is committed to making sure those who serve are treated fairly and that the nature of their careers does not prevent them from buying a home. The scheme has proved most popular with those between the ages of 20 and 39 and the vast majority of recipients are non-officers.
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’s and estate agent’s fees.
Defence Secretary Michael Fallon said:
“This scheme has helped thousands of service families to enjoy the stability and security of owning their home. It is part of our commitment to them, in return for the immense commitment they make to us.”