Virgin Money and Clydesdale Bank will now accept Forces Help to Buy loans as a mortgage deposit.
This scheme allows armed service personnel to borrow up to half of their salary, up to a maximum of £25,000 interest-free towards the purchase of a home, in a measure passed by the Ministry of Defence as “an enduring policy” in January.
The department says, “the aim of this scheme is to address the low rate of home ownership within the armed forces” and “recognises the positive impact owning a home can have during an inherently mobile career”.
Virgin Money adds that the loan is repaid in equal instalments over 10 years — deducted from the salary of the borrower with “a small insurance premium”.
The lender tells brokers, that the Forces Help to Buy loan and insurance payments should be included as expenditure within the application, “so it knows how much the customer will be paying”.
It adds that it does not need the borrower’s personal information note from the MoD which confirms their loan.
Elite Force Mortgages founder Simone Riley says: “As an RAF family mortgage broker, I am thrilled that Virgin Money has started accepting this source of deposit, with a clear straightforward policy.”
