"It is fantastic that Virgin Money is now offering its support to members of the Armed Forces who are planning on buying a home of their own."
Virgin Money and Clydesdale Bank will now accept Forces Help to Buy loan as a mortgage deposit.
The Scheme is open to serving members of the armed forces and lets them borrow up to 50% of their annual salary - up to £25,000 - interest-free, to put towards a residential purchase. The loan is repaid in equal instalments over a 10 year period - deducted from their salary with a small insurance premium.
In December 2022, the Forces Help to Buy scheme was made permanent by the government. Since its launch as a pilot in 2014, the government says FHTB has contributed to a 16% increase in home ownership amongst service personnel.
It is expected that approximately 5,000 Serving personnel will use the scheme per year to help them with home ownership.
In a note to brokers, Virgin said: "The Forces Help to Buy loan and insurance payments should be included as expenditure within the application so we know how much the customer will be paying. To keep things speedy, we don’t need the customer’s personal information note from the MoD which confirms their loan."
Simone Riley, founder at Elite Force Mortgages, commented: “The news that Virgin Money is now accepting Forces Help to Buy is very welcome. Forces Help to Buy was made an enduring Ministry of Defence policy on 1st January 2023. It is fantastic that Virgin Money is now offering its support to members of the Armed Forces who are planning on buying a home of their own. As an RAF family mortgage broker, I am thrilled that they have started accepting this source of deposit, with a clear straightforward policy.”
