H o u s i n g
LENDING YOU THE MONEY TO BUY A HOME S
ince 2008, many serving personnel have been eligible for the Government’s range of HomeBuy schemes, providing
assistance to rent or buy a home. Now the MoD are working with the Department of Communities and Local Government and the Homes and Communities Agency and have developed a pilot scheme in England specifically designed to meet the needs of serving personnel.
This scheme, the Armed Forces Home Ownership Scheme (Pilot), has been launched and the MoD are providing funding for the next three years and it is hoped it will help 250 Service personnel buy their first home. The scheme is run by Swaythling Housing Society, part of the Radian Group, who have many years experience in administering such schemes.
Lindsay Todd, Chief Executive of Radian said, ‘We are delighted to be working with the MoD to deliver this exciting new scheme. We have a strong track record in providing affordable homes, and a great deal of
www.raf-ff.org.uk
experience in successfully delivering Low Cost Home Ownership schemes to keyworkers, including Armed Forces personnel and others, across the south and south west. We are looking forward to working with the MoD to help even more members of the forces buy their first home.’
To be eligible for the scheme, applicants will need between 4 and 6 years service, and be unable to buy a suitable home on the open market. If approved, the applicants may be offered a loan of up to £75,000 to top up what they can afford on their own, allowing them to buy a home on the open market like any other buyer.
For example if an applicant can obtain a deposit and mortgage to cover £80,000 of a house’s value they could be eligible for further equity assistance of up to £75,000, allowing them to buy a home worth up to £155,000
There is normally no fee to pay on the government’s funding while the applicant remains in the regular Armed Forces. The government’s share of the house is repaid
when it is sold. A particular feature of this scheme is its flexibility, recognising that circumstances can and often do change. There is the possibility to sublet the home, pay off part or the whole government share, or indeed move house in the event of a posting. Funding is limited and applications will be processed in tranches on a first come, first served basis. Full details of the scheme including how to apply can be found at
www.afhos.co.uk or by calling Swaythling on 0800 028 1980.
The pilot scheme is intended to test a specific approach towards encouraging home ownership in the Armed Forces. The HCA and MoD will be closely monitoring and evaluating the scheme throughout the pilot period looking at take-up rates, whether the scheme meets the requirements of Service personnel and value for money. In addition the MoD will continue to look at a variety of approaches to meeting accommodation needs and aspirations of service personnel in the future. Personnel will also continue to be able to apply for other government schemes, and full details of these can be found at
www.homebuy.co.uk
Autumn 2010 33
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