Introduction

The Forces Help to Buy (FHTB) scheme is an advance of salary scheme, which is available to help UK Service personnel who want to buy their first home and to enable the option to self-build amongst eligible Service personnel.

Outline

Since 2014, Regular Service personnel have been able to take an advance of up to 50% of their gross annual salary (capped at £25,000), interest free, to purchase their own home.

The scheme aims to address low levels of home ownership in the Armed Forces, overcoming the disadvantages that mobility brings in line with the principles of the Armed Forces Covenant. It supports greater lifestyle choice and retention of personnel.

The pilot was initially planned to run for three years, but due to its popularity it has now been extended until December 2022.

The loan is repaid through the Service person’s monthly salary, over a period of 10 years. Personnel are expected to live in the home whenever Service needs allow. It is taxable and soldiers should seek advice on the impact this will have on their monthly income.

For more information, please read:

• The full government guidance at www.gov.uk/guidance/forces-help-to-buy; and
• JSP 464 – Tri-Service Accommodation Regulations, Chapter 12.