Last reviewed: June 2026
TL;DR- Forces Help to Buy (FHTB) allows eligible service personnel to borrow up to 50% of their annual salary (max £25,000) interest-free to assist with a deposit or purchase costs.
- Armed forces pay is PAYE employment income - payslips and P60 are the standard income documents, with additional allowances (X-Factor, LSA, etc.) assessed on their regularity.
- Service personnel have national priority for shared ownership allocation regardless of where the property is located.
- Mortgage lenders that understand military income structures - including allowances and the posting cycle - are important for service personnel.
Forces Help to Buy Scheme
The Forces Help to Buy (FHTB) scheme allows eligible UK armed forces personnel to borrow up to 50% of their annual salary, capped at £25,000, interest-free to assist with the costs of purchasing a property. The loan can be used for a deposit, solicitors' fees, or other purchasing costs. Repayment is made over 10 years through deductions from the service member's pay. The scheme is administered by the Ministry of Defence.
Eligibility for FHTB requires the service member to have completed the minimum service period specified for their rank and service, and to have sufficient service remaining. The property purchased must be intended as the service member's home rather than an investment property. The current status, eligibility criteria and application process for FHTB should be confirmed via the MOD's official guidance, as scheme terms may be updated.
Income Assessment for Armed Forces Personnel
Armed forces personnel are PAYE employees. Basic pay is assessed in the standard way using payslips and a P60. In addition to basic pay, service personnel may receive a range of allowances:
- X-Factor supplement: a pay supplement reflecting the specific demands and conditions of military service, included in basic pay.
- Operational allowances: paid during active operational deployments - these are typically treated as non-recurring by lenders and excluded from the affordability assessment.
- Commitment bonuses and LSA (Long Service Advance): treated variously by lenders depending on their regularity and contractual basis.
- Accommodation allowances: housing allowances paid where service accommodation is not taken up - these may be considered by some lenders where they are regular and evidenced.
Lenders familiar with military pay structures and the Joint Personnel Administration (JPA) payslip format are better placed to assess service personnel applications accurately. A specialist broker with armed forces mortgage experience can identify the most suitable lenders.
National Priority for Shared Ownership
Armed forces personnel are given national priority for shared ownership allocation - they are not restricted to purchasing in the local authority area where they are currently posted. This is particularly important for service personnel who move frequently as part of the posting cycle and may not have a local connection to the area where they wish to purchase.
Posting Cycles and Mortgage Considerations
The posting cycle - regular moves to different bases - is a significant practical consideration for service personnel purchasing a property. A property purchased near one posting may not be convenient for a subsequent posting. Some service personnel purchase a property in their preferred home area and rent it out during postings elsewhere (which requires a buy-to-let or consent to let arrangement), then move into it on leaving the service or on a convenient posting. This strategy requires careful mortgage and tax planning.
Frequently Asked Questions
Can I use Forces Help to Buy alongside a Lifetime ISA?
The Forces Help to Buy loan and a Lifetime ISA can both be used toward the same property purchase, subject to both sets of eligibility criteria being met. The LISA property price cap (£450,000) applies. The FHTB loan is repaid through pay deductions and is treated as a liability in the mortgage affordability assessment - lenders will factor in the FHTB repayment amount when calculating affordability for the main mortgage.
Does being deployed overseas affect a mortgage application?
Lenders and solicitors handle mortgage applications remotely, so physical absence does not prevent an application proceeding. Power of attorney arrangements are commonly used by deployed service personnel to allow a trusted person to act on their behalf in property transactions. The presence of operational allowances on payslips during deployment should be explained to the lender, as these are typically non-recurring and excluded from affordability calculations.
Can I rent out my property during a posting without remortgaging?
Most residential mortgage lenders require borrowers to request consent to let before renting out the property, rather than automatically converting to a buy-to-let mortgage. Many lenders grant consent to let for service personnel on posting, recognising the particular circumstances. The mortgage terms should be checked and the lender contacted before renting the property out.
What happens to my mortgage if I leave the armed forces?
Leaving the armed forces does not directly affect the mortgage - the loan terms continue regardless of employment changes. If the transition to civilian employment results in a period of lower or uncertain income, the ability to maintain mortgage payments should be assessed in advance. The FHTB loan, if outstanding, remains repayable through the agreed schedule.
