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Virgin Money and Clydesdale Bank will now accept Forces Help to Buy loans as a mortgage deposit.
The scheme allows military personnel to borrow up to half their pay, up to a maximum of £25,000 interest-free, to buy a house, under a measure passed by the Defense Department in January.
The department states that “the purpose of this scheme is to address the problem of low homeownership in the military” and “recognizes the positive impact of homeownership on mobile careers.”
Virgin Money adds that the loan is repaid in equal installments over 10 years – deducted from the borrower’s salary with a “small insurance premium.”
The lender tells brokers that Forces Help to Buy loan and insurance payments must be included in the costs as part of the application “so he knows how much the client will pay.”
He adds that he does not need a borrower’s certificate from the Ministry of Defense confirming his loan.
Elite Force Mortgages founder Simone Riley says, “As a family owned RAF mortgage broker, I’m thrilled that Virgin Money has begun accepting this source of deposit with a clear and simple policy.”
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