The scheme is open to serving members of the armed forces
Virgin Money and Clydesdale Bank have announced that they are now accepting the Forces Help to Buy loan as a mortgage deposit.
The scheme is open to serving members of the armed forces and lets them borrow up to 50% of their annual salary up to £25,000 interest-free, to put towards a residential purchase.
The loan is repaid in equal instalments over a 10-year period, deducted from their salary with a small insurance premium. The aim of this scheme is to address the low rate of home ownership within the armed forces.
The banks said the Forces Help to Buy loan and insurance payments should be included as expenditure within the application so they were aware how much the customer would be paying. They also reminded that to keep things speedy, the customer’s personal information note from the Ministry of Defence, which confirmed their loan, was not needed.
“The news that Virgin Money is now accepting Forces Help to Buy is very welcome,” commented Simone Riley, founder at Elite Force Mortgages. “Forces Help to Buy was made an enduring Ministry of Defence policy on 1st January 2023.
“It is fantastic that Virgin Money is now offering its support to members of the Armed Forces who are planning on buying a home of their own. As an RAF family mortgage broker, I am thrilled that they have started accepting this source of deposit, with a clear straightforward policy.”
Full details of the banks’ lending criteria are available on the Virgin Money website and Clydesdale Bank website.
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