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Armed Forces Home Ownership Scheme - what it is

If you have worked between four and six years for the Armed Forces, the scheme may offer a loan to help you buy a home.

Armed Forces Home Ownership Scheme - who can apply

To qualify for the scheme, you must:

• have worked between four and six years for the Armed Forces at the time of applying
• be able to show that you have enough money to pay the deposit for the house, legal fees, Stamp Duty and other moving costs
• be able to maintain your mortgage repayments
• have a good credit history
• be willing to sell your home - if you already own one - and you are approved for the Armed Forces Home Ownership Scheme

Armed Forces Home Ownership Scheme - how it works

If you have a deposit and you qualify for the scheme, you can buy any home in England with a loan from the scheme. The loan can be for between 15-50 per cent of the cost of the home and is known as a ‘Second Charge’.

For example, if you qualify for a mortgage of £65,000 and you have a £10,000 deposit, the scheme could lend you up to £75,000. This means that you could buy a property worth up to £150,000.

You can buy new or existing properties on the scheme. However, the property must be empty at the time of buying. This is known as ‘vacant possession’.

It must also be in good condition and available to live in immediately.

The scheme is run by Swaythling Housing Society on behalf of the government.

• Armed Forces Home Ownership Scheme - Swaythling Housing Society Opens new window

Applying for the Armed Forces Home Ownership Scheme

If you think you qualify to buy a home through the Armed Forces Home Ownership Scheme, you can contact them directly for an application form. Once you have filled in the application form, send it off to Swaythling Housing Society. They will let you know if you can buy a home through the scheme.

• Armed Forces Ownership Scheme - Swaythling Housing Society Opens new window

If you are in the Armed Forces and you do not qualify for the Armed Forces Ownership Scheme, you may qualify for other home ownership schemes.

• Home buying schemes

Armed Forces home ownership - costs involved

If you qualify for the scheme, you will still need money to pay for some costs such as the ‘HomeBuyers Survey Report’. This report will let you and Swaythling Housing Society know of any repairs that need to be done at the property.

If repairs are necessary, Swaythling Housing Society will let you know if the property is still suitable for the scheme.

Swaythling Housing Society has the right to turn down the property if they believe it is unsuitable for the scheme.

You will also have to pay the legal fees, moving costs and maybe Stamp Duty Land Tax (Stamp Duty).

Stamp Duty is the tax you pay when you buy property.

• Planning for buying a home (money, tax and benefits section)

What happens when you sell the property

If you sell the property later on, you must give the government a part of the money from the sale of the house. The amount you give the government must be the same percentage as the loan they gave towards your home. For example, if you received a 25 per cent loan to buy the house, the government will get 25 per cent when you sell it.

Leaving the Armed Forces

As long as you stay in the Armed Forces, you will not need to pay any fees on the loan - the Second Charge.

If you leave the Armed Forces or you die, the government has the right to ask you or your ‘estate’ for the money back. This is called a ‘repayment’.

Your estate is everything that you own at the time of your death.

More useful links

• Home and housing options (disabled people section)

• Mortgages (money, tax and benefits section)

• After a death - managing an estate (money, tax and benefits section)

Useful contacts

• Home and community contacts