The Armed Forces are to benefit from a new £200 million scheme to help them get on the property ladder.
The new Forces Help to Buy scheme will mean servicemen and women can borrow up to 50% of their salary, interest-free, to buy their first home. The measures will allow Service personnel to borrow up to a maximum amount of £25,000, providing a boost to those needing to find a deposit to buy their own home.
Starting on 1 April 2014, the scheme will initially cover a 3-year period and help address the low rate of home ownership in the Armed Forces.
Defence Secretary Philip Hammond said:
Service personnel can struggle to enter the housing market as they move around throughout their military career. By giving our troops this extra help they will be more able to set down roots and get onto the property ladder.
The introduction of this new scheme will help increase home ownership, and provide our Armed Forces with sustainable lifestyle choices. It further demonstrates the government’s commitment to strengthen the Armed Forces covenant, ensuring that personnel and their families are not disadvantaged by their service.