How much can you actually borrow with Forces Help to Buy?

Regular personnel who have completed the prerequisite length of service, are not a reservist or member of the Military Provost Guard Service, have more than six months left to serve, and meet the right medical categories. Reservists are not eligible. Some exceptions exist for medical and personal circumstances.

Up to 50% of your annual salary (including Recruitment & Retention Pay), capped at £25,000. The cap has not changed since the scheme launched in 2014, so for higher earners the £25,000 ceiling is the binding limit.

Repaid over 10 years through monthly deductions from your pay. There's also a small monthly insurance premium (typically £6–£7 depending on loan size) that protects the loan in the event of death or invalidity — this is taken alongside repayments. If you leave the Services before the loan is fully repaid, the outstanding balance is recovered from your terminal benefits.

Loans with an average outstanding balance of £10,000 or less during the tax year are exempt. Above that threshold, HMRC treats the interest-free benefit as a "beneficial loan" under ITEPA 2003 Section 180.

The actual cost is smaller than people often assume. Tax is calculated on the notional interest you would have paid at HMRC's official rate, applied to your average loan balance during the year (opening balance plus closing balance, divided by two). For a basic-rate (20%) taxpayer with the full £25,000 loan, this works out to roughly £200 per year. For a higher-rate (40%) taxpayer, around £400 per year. As your balance reduces each month, the tax cost falls.

Tax is collected automatically through an adjustment to your PAYE code — there's no extra paperwork and no self-assessment required. The loan is reported on your P11D each year. Your adviser can give you an exact figure based on your tax band and loan amount.

Yes. You may overpay at any time without penalty, and the loan can be cleared early. You can also choose when repayments start: immediately after receiving the loan, six months after receiving it, or in your final ten years of service.

Important to know. If the property bought with FHTB is later rented out — for example because you're posted away — the entire loan amount becomes liable to interest charged at the HM Treasury rate, not just the BIK calculation. FHTB is intended for a property you live in. If your situation might change, raise it early with your adviser so it can be planned around.

FHTB stays with the service person who took it out — your civilian partner cannot take it on, and the loan continues to be repaid from your salary regardless of the relationship. If the property is sold, the outstanding balance should be repaid from the proceeds. Disputes around what happens to the loan in a separation can get legally messy, especially with a civilian co-owner; it's worth taking advice from a solicitor experienced with armed forces matters as early as possible.

Yes — the 50-mile rule. If you buy a property within 50 miles of your current assignment (or next confirmed assignment), you become ineligible for SFA or SLA at that posting. This is a key planning consideration.

Yes. Most major housebuilders (including Taylor Wimpey, Bellway and Persimmon) accept FHTB and many offer additional Forces discounts on new build homes. A specialist broker can map these for you.

Most mainstream lenders accept FHTB, but not all — and they treat the loan slightly differently in affordability assessments. It's worth using a broker who knows which lenders are most flexible with FHTB applications.

Through your JPA self-service portal, using the FHTB Pre-Approval application. You should apply at least 6 weeks before your expected purchase completion date. Your application is workflowed to your Unit HR and Commanding Officer for approval before being actioned by the FHTB team at DBS.

Yes. From 1 January 2023 the Forces Help to Buy scheme became an enduring policy with no end date, ensuring its availability to all eligible service personnel.