Forces Help to Buy Scheme (FHTB) Becomes Permanent

If you are a member of the Armed Forces, or know somebody that is, you may be aware of the Forces Help to Buy Scheme (FHTB).

The Scheme, which started in 2014, is designed to assist those in the Forces to purchase their own home. This can be either a first home or in some cases, to extend a property to meet the needs of a growing family.

It is available to all regular personnel who:

• have completed the pre-requisite length of service
• are not a reservist or a member of the Military Provost Guard Service
• have more than six months left to serve at the time they apply
• meet the right medical categories.

However, there may be exceptions to these criteria, especially where there are special medical and personal circumstances.

Under this scheme, it is possible to borrow up to 50% of gross annual salary (up to a maximum of £25,000) via a loan. This loan is interest-free and repayable over a maximum of ten years.  The money can be used towards the deposit as well as other associated costs such as solicitors’ or estate agents’ fees.

It had originally been introduced due to the low rate of home ownership within the Armed Forces and its aim is to encourage this, with around 5,000 serving personnel expected to use the Scheme per year.

The good news is, that with effect from 1 January 2023 the Scheme has been made permanent by the Government, ensuring its availability to all service personnel now and in the future.

For more information, please see the Government information page here.

The application process can be accessed through the Government website and there are helpful user guides to assist with this.