The forces helped to buy scheme was launched on the first of April 2014
as a three-year pilot scheme it's now been extended to the end of December 2022. In this
video I discuss the requirements, what properties you can buy and how to apply. What's up my name
is Alex Kerr and on this channel we provide the best tools and tips to first-time buyers,
if we're meeting for the first time please consider subscribing. Let's jump into the video.
So what is forces help to buy forces help to buy ? It enables service personnel to borrow up to
half of their salary to a maximum of twenty five thousand pounds. This can go towards your deposit,
solicitors fees, or even estate agent fees if you're moving home. Forces help to buy scheme is
open to both first-time buyers and home movers it must be used for residential purposes only.
That means for you or you and your family to live in the home,
you can't treat it as an investment or buy to let where you rent the property out to a tenant.
You can also combine the forces help to buy and the traditional help to buy equity loan
together, however just remember if you do that the help to buy equity loan which is not the forces
help to buy scheme, is only available on new build properties, so if you combine the two together
you must buy a new build property. The loan itself is classed as a beneficial loan via
the hmrc. What's the tax and interest payable on this loan first of all the interest is completely
interest-free payable over 10 years don't have a penny of interest to pay, all of your repayments
will reduce the capital, the hmrc class it has a beneficial loan meaning if all of your beneficial
loans including the forces help to buy a loan exceeds 10,000 pounds there may be some tax to
pay on the loan. There's not too much information around that i've been able to find on the internet
however I have found a discussion on the martin lewis website and i've included a link to that
thread in the comments, where someone who took out a fifteen thousand pound forces help to buy loan
talks about their repayments being around twenty pounds per month. I've also included a link to the
hmrc website where you can discuss it with them for clarity. So what type of property can you buy
if you're just using the forces help to buy loan ? You can buy any property type in the UK, England,
Wales and Ireland. There's no restrictions on what type of property you can buy and you can use it
for any element of your property transaction. If you are combining it with the help to buy equity
loan then you can only buy new build houses only, following the rules of the help to buy equity loan
scheme 2021, which is for first-time buyers only, and has regional price caps. I've included the
help to buy equity loan link as well. So how do you apply ? You can apply through your JPA
system (joint personal administration) system or you can seek advice on your application through
your chain of command or personal agency. Second option is to use a mortgage broker,
who should have good relationships with the mortgage lenders that supply forces help to buy.
It's really important that the correct mortgage lender is sourced who supports the forces help
to buy scheme and also the help to buy equity loan scheme if you're combining the two together. I've
provided some links in the comments below to some of our servicing mortgage partners who provide
the forces help to buy scheme. I noticed one of our subscribers was in the forces and sent me a
message, Stuart Cowan or Stu Cowan "good afternoon Alex hope you and your family are well. I've been
really enjoying your videos lately as I'm looking to buy my first house in the next 10 months,
thanks for pulling together a sea of confusing information and making it understandable to all of
us, I noticed you've done videos on various buying schemes and I'd like to know if you consider doing
a video covering the forces help to buy scheme and its place in the world of first-time buyers, this
will be my intended route of funding my deposit and the information out there can be a little
vague at the best of times. Once again thanks for your help, stay safe, Stu Cowan." Well Stu,
this one's for, you thank you for all the support you've provided protecting us, our families and
our country. Today's question, are you in the forces and looking for a forces help to buy a
loan ? let me know in the comments. So please note we do need to let you know that your home may be
repossessed if you do not keep up repayments on your mortgage. So thanks checking out today's
video please do check out the show notes below for a recap on today's content, consider subscribing
if you haven't done so already. Untill next time mortgage chain are bringing you the best
tools and tips the first time buyers, have a beautiful day we'll see in the next video.