Being in the Armed Forces means making extreme sacrifices and often putting yourself in danger. So it is only fair that our service men and women are rewarded for their efforts. One of the areas where perks are available for members of the Armed Forces is housing.
Buying a new home can be a lot more affordable with The Armed Forces Home Ownership Scheme (AFHOS). It enables personnel to purchase a property on the open market up to a maximum value of £300,000, using a conventional mortgage and with help from the Homes & Communities Agency (HCA) in the form of an equity loan. This allows those eligible to take out a high street mortgage - minimum 50% and maximum 85% - on which they make repayments in the normal way. The rest of the purchase price will be paid for with a contribution from the HCA. The maximum amount that the equity loan can be is £75,000.
There are no interest payments to pay on the loan while you remain a regular serving member of the Armed Forces. However, the downside is if the personnel member leaves the Armed Forces, is killed in Service, or is made redundant, they will be liable to pay monthly fees calculated against the value. The HCA may also, at any point after you leave active Service or die or are made redundant, require repayment.
To be eligible for the scheme they must have served between four and six years of continuous service and be unable to afford a suitable home on their own. The scheme is only available in England and is delivered through Swaythling Housing Society Ltd. Along with AFHOS, developers offer certain discounts for members of the Armed Forces.
Top three offers
1. Barratt Homes
Personnel employed by the Army, Royal Navy or RAF, as well as anyone who served in the wars in Afghanistan or Iraq, qualify for Barratt Homes Armed Forces Discount Scheme. Anyone set to retire from the forces this year will be eligible until the end of 2013. The scheme offers a £1,000 discount for every £25,000 on the cost of the property they are buying. For example, on a home costing £126,000, they would qualify for a reduction of £5,000. Again, evidence of membership must be provided for this scheme.2. Bellway
2. Bellway
Bellway gives a discount for service commitment to the country by offering £500 for every full £25,000 or pro rata for part thereof (per property purchase) on the cost of the property you are buying. This offer is available to currently serving and recently retired UK Armed Forces personnel who have been retired less than a year.
3. Taylor Wimpey
Taylor Wimpey Armed Forces discount allows a discount of £500 for each £25,000 of any purchase of a new property from
its range of participating developments (pictured is Abbey Grange in Arbroath). Proof of Armed Forces membership is required and the maximum entitlement is £5,000 discount. Armed Forces personnel are also in the priority group for the government's FirstBuy scheme.