The Armed Forces Home Ownership Scheme has been launched by the Ministry of Defence (MoD) and the Department of Communities and Local Government (DCLG), to help members of the Armed Forces who would otherwise not be able to get on the property ladder, to buy their own homes.
There are strict eligibility criteria, as only members who have been in the service for between 4 and 6 years can apply at this stage. Members have to be able to show they can sustain home ownership and pay the deposit, and the Scheme will give a top-up loan as a second charge on the property of up to 50% of the value of it, subject to a maximum of Â£75,000. There is no interest to pay for the first year and there are no fees to pay while still a serving member.
The Homes and Communities Agency (HCA) will manage the Â£20m scheme funded by the MoD, running initially until Spring 2013. They have appointed Swaythling Housing Society to act on their behalf, to market and administer the Armed Forces Home Ownership Scheme, as well as to help the service personnel to buy a home through the scheme. They have set up a website www.afhos.co.uk which has all the details and how to apply for the loan.
10th September 2010