The new Forces Help to Buy (FHTB) scheme, offering regular service personnel loans of up to 50% of salary towards the purchase of a home, has launched today, 1 April.
Initially covering a 3-year period, the scheme is the first part of the new employment model (NEM).
The NEM is a long-term programme which aims to modernise the terms and conditions of service ‘offer’ for service personnel so it better reflects the needs and aspirations of service personnel, and their families, in the 21st century.
The launch of FHTB marks a significant step forward in helping service personnel to get onto the property ladder by offering greater financial support towards the cost of buying a home.
Helping to overcome the disadvantages that service mobility brings is in line with the principles of the armed forces covenant.
Chief of Defence Personnel, Lieutenant General Andrew Gregory, said:
Through our work on the new employment model and the armed forces covenant we are continually striving to make improvements to those aspects of life outside of service which we know can be adversely affected by life in service.
In particular we are keen to address the demand for greater stability, including access to home ownership, and an improved ability to exercise choice in the way our people live their lives.
And so it is a hugely positive step forward that we are able to introduce the Forces Help To Buy scheme today, a year ahead of our original plan.
A separate FHTB scheme specifically for those leaving service as part of Tranche 4 redundancies was announced in January this year. This will launch on 12 June 2014.