Saving a deposit can be difficult alongside a Service career. Forces Help to Buy offers eligible personnel an interest-free MOD salary advance towards a qualifying home purchase. You can borrow up to half your qualifying annual salary, capped at £25,000.
Often called Armed Forces Help to Buy, this loan sits alongside your mortgage, so you need to budget for both repayments. You can also explore other first-time buyer schemes when comparing your options.
How Forces Help to Buy works
WHO
Eligible Regular Service personnel
The scheme supports qualifying members of the UK Regular Armed Forces.
LOAN
An advance towards your purchase
You borrow from the MOD and repay the advance.
USE
Deposit and eligible buying costs
Funding can help with your deposit and approved purchase fees.
REPAY
Monthly deductions from Service pay
Repayments come from your salary alongside your separate mortgage commitment.
Who can apply for the scheme?
Regular personnel in the Royal Navy, Army and RAF can apply. The main Forces Help to Buy eligibility checks include:
Service and training
You have served for at least 12 months since enlistment and completed Phase 1 training.
Time left to serve
You have more than six months remaining when you apply.
Approval and suitability
Your Commanding Officer approves the application, and you meet medical and other Service conditions.
Reservists and Military Provost Guard Service members are excluded. Ask Unit HR about unusual medical or family circumstances.
How much could you borrow?
The 50% calculation includes recruitment and retention pay but excludes allowances. Your approved amount also depends on the purchase circumstances.
Illustrative example
Calculation
Amount
Qualifying annual salary
£40,000
50% of salary
£20,000
Potential loan, subject to approval
£20,000
Funding can cover your deposit and eligible buying fees. It can also support qualifying home moves, while extensions need specific family or medical grounds. You cannot use it for general improvements, investment properties or second homes.
The scheme also sets rules about who lives in the property. Before committing, ask Unit HR how buying could affect your right to Service accommodation.
To explore the mortgage you may need alongside the MOD loan, use our mortgage calculator for an initial estimate of borrowing and monthly repayments.
Using the loan alongside your mortgage
An “Armed Forces Help to Buy mortgage” means a lender’s mortgage used alongside the MOD advance. It is not a separate government mortgage product.
Your lender must accept the MOD loan towards your deposit. It will also check your income, spending, credit history and the property. Although the advance reduces the savings you need upfront, its repayments affect your mortgage budget. As a result, scheme approval alone does not secure a mortgage or better rates.
Tell your adviser early and provide the MOD Personal Information Note or other requested evidence. This way, your adviser can check lender criteria and include the repayments in your budget. Also keep savings available for costs the advance does not cover, plus unexpected bills after moving.
Explore your borrowing before applying
An Agreement in Principle gives an initial indication of what you could borrow.
How Forces Help to Buy repayments work
You normally repay through salary deductions over up to ten years. For example, £20,000 over 120 months means about £166.67 a month towards the loan, before scheme insurance and any tax effect. Your mortgage payment is separate.
The start date depends on your remaining service, so a six-month delay does not apply to everyone. A scheme insurance premium is also payable.
On leaving, the MOD may recover the balance from final pay or terminal benefits. Arrangements depend on your circumstances, so contact the FHTB team before planning an early exit.
However, an interest-free loan can still create a tax bill. If the outstanding balance of this and other low-interest or interest-free employment loans exceeds £10,000 at any point in the tax year, the small-loans tax exemption no longer applies. Any tax due relates to the interest you save, rather than the full loan amount.
How to apply for the loan
- First, check eligibility with Unit HR and discuss funding with your adviser and solicitor.
- Then, apply through the Joint Personnel Administration (JPA) self-service system.
- Next, coordinate approval and payment with your solicitor and the FHTB team.
Allow at least six weeks before expected completion. This is a lead time, not a guaranteed processing period. Once approved, payment normally goes to your legal representative. Follow the official application guidance.
How Muttuo can help
Muttuo can review your mortgage options. Unit HR and the MOD confirm scheme eligibility.
Review your deposit plan
Check lender acceptance
Assess combined repayments
Plan your mortgage alongside the advance
Talk through funding your Forces Help to Buy home purchase.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Common Forces Help to Buy mortgage questions
Does Forces Help to Buy end?
It became an enduring policy from 1 January 2023, rather than a time-limited pilot. However, policy can change, so check current terms before applying.
Can I use it with Shared Ownership?
Yes, subject to scheme, provider and lender requirements. With shared ownership, include rent and service charges alongside loan and mortgage repayments.
