Forces Help to Buy & tax implications

Forces Help to Buy Scheme (FHTB)

Monies from this scheme can be used as a deposit (where the application is for an Equity Share loan then FHTB is not an acceptable deposit type).

If the maximum product limits available at the time mean the FHTB is insufficient to meet the shortfall between the purchase price and the maximum available loan, then an additional deposit will be required.

Monthly repayment including the mandatory insurance payment must be included in affordability calculation, this will be confirmed from the Personal Information Note (PIN) as issued to your client by the MoD.

For purchases the PIN will be required to evidence deposit, for re-mortgages the applicants payslip will evidence the total monthly FHTB outgoing.

The following are acceptable in conjunction with FHTB

NewBuy/MI New Home: FHTB customers can take part in the NewBuy (England) and MI new home (Scotland) schemes.

The following are unacceptable to be used in conjunction with FHTB

Help to Buy Equity Loan Scheme: FHTB customers cannot participate in the Help to Buy equity loan share scheme

Other Equity Loan Scheme: FHTB customers will not be accepted in conjunction with any equity share scheme

Right to Buy: FHTB cannot be used in conjunction with Right to Buy applications

Shared Ownership: FHTB cannot be used in conjunction with Shared ownership applications