Forces Help to Buy Scheme (FHTB) Explained in Liverpool

A scheme that was brought into the world back in 2014, following on from the successful Help to Buy Equity Loan Scheme in Liverpool, the Forces Help to Buy Scheme is a government ran scheme that has the purpose of reducing the low rate of forces home ownership across the UK.

This scheme is available for use by Tri-Service members, the Royal Navy, Royal Marines, Army and Royal Air Force, as long as they all meet the criteria.

Additionally, the Ministry of Defence’s Defence Accommodation Strategy is also something that is factored in, as the aim of this is to ensure that all military personnel have access to a good standard of accommodation.

A big part of this, that is greatly emphasised, is the positive impact that homeownership can have with people that have mobile careers. These benefits include partner employability, stable education for your children, as well as continuity for members of the services who move out of active service.

Although it was set to end back in 2019, we have seen a small handful of extensions for the Forces Help to Buy Scheme in Liverpool, with the government eventually transforming it into an enduring policy, which means that service members both now and in the future, still have access to it.

How does the Forces Help to Buy Scheme in Liverpool work?

The way that Forces Help to Buy in Liverpool works, is that service personnel have the ability to borrow up to 50% of their annual salary, which will have a cap at £25,000, without any interest added on. This can be used either for a first time buyer mortgage in Liverpool or for moving home in Liverpool.

This scheme is currently available to all regular personnel who have completed the required length of service, are not a reservist or member of the Military Provost Guard Service, that also have more than 6 months of time left to serve at the time of application and that meet the appropriate medical categories.

There may still be exceptions to the criteria, especially when you are looking at factors such as special medical and personal circumstances. To learn more about these exceptions and to read further on Forces Help to Buy in Liverpool, please take a look at the government guidance website.

One of the more appealing aspects of FHTB, is that you don’t necessarily require any current savings of your own, just to be able to use this scheme. The funds acquired from FHTB can be used for a deposit, solicitors fees, estate agents fees and stamp duty land tax.

The good news in terms of your deposit as well, is that virtually all mortgage lenders accept using FHTB for that purpose. Additionally, it’s typically more relaxed than other schemes, with Forces Help to Buy in Liverpool needing to be paid back over a 10 year period.

How a Mortgage Advisor in Liverpool May Be Able To Help

As a mortgage broker in Liverpool with a great deal of experience and a strong reputation, we have a lot of love and respect for those in our country who have served for our benefit. We are here to provide help and support in any way we can.

From your first point of contact, right the way until mortgage completion, your trusted mortgage advisor in Liverpool will be on hand to make sure you are well looked after and are on your way to achieving a favourable outcome.

To learn more, please feel free to get booked in for a free mortgage appointment with one of our dedicated mortgage advisors in Liverpool today, and we will see how we can get the ball rolling on your home buying journey.

Note; The Forces Help to Buy in Liverpool is not the same as the standard UK Help to Buy Scheme in Liverpool or Shared Ownership Scheme.

If you happen to be an existing service member and homeowner who is looking to use Forces Help to Buy in Liverpool to move home, aged 55+, it could be appropriate to look at equity release or retirement interest-only mortgages (RIO Mortgages), as forces pensions could prove beneficial for this.

To understand the features and risks of equity release in Liverpool and lifetime mortgages, ask for a personalised illustration.

A lifetime mortgage in Liverpool may impact the value of your estate and it could affect your entitlement to current and future means-tested benefits. The loan plus accrued interest will be repayable upon death or moving into long-term care.

Leasehold Houses in Liverpool

Off the back of Help to Buy in Liverpool, many builders started selling houses on a leasehold basis when traditionally homes had always been freehold. Over time this became a debatable topic at which the Government felt the need to step in.  

Some of the country’s housebuilders got pointed the finger of putting profits before their social conscience while they are aware that they need to build homes for families they also have shareholders to answer.

Land Banking

The media had made it publicly known that there was a situation with land banking.

Land banking is a real estate investment scheme that involves buying large blocks of undeveloped land with a view to selling the land at a profit when it has been approved for development. Thanks to consolidation, some builders have inherited land into their organisations which is on a leasehold basis.

It’s a debatable topic that they offer both leasehold and freehold properties for sale so that buyers can make an informed choice.

What about the people?

Many people felt that the market had swayed too forward towards leasehold, when it came into light just how much profit the builders were making off back the leases.

Things took a turn when the Chief Executive of one of the UK’s most prominent builders received a bonus of over £100m. At the time, this was one of the most significant premiums paid in corporate history.

Some leasehold homeowners were surprised when they were being quoted thousands of pounds in fees when they sought permission to make small alterations to their homes. The fees were being charged by their leasehold Management Companies.

Some of the annual ground rents were to double every ten years and owners could see that selling their home in the future once these increases have kicked in would be more difficult.

In Parliament

After notifying their MP’s and getting the subject debated in parliament, the government agreed that if you were buying a house (not a flat or apartment), then it is reasonable that you should own the freehold.

What can you do?

If you are in this situation of owning one of these houses and you weren’t aware if it was leasehold, then you should have been made aware.

If you feel that the Solicitor acting for you did not give you the full facts about the lease you signed, you should re-contact them immediately to investigate why.

You can contact the freeholder at any time if you are interested in buying the freehold from them.

Service Charges

The costs of the service charges can go up. Sometimes the residents in the area get together to form an association. This might allow them to choose a different service provider.

If you are considering buying a leasehold property, take advice from your Solicitor regarding the lease.

It’s straightforward to get carried away with the excitement of purchasing a home, but you also need to realise it’s a significant investment decision that you need to think about carefully.