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Guide to The Armed Forces Home Ownership Scheme (AFHOS)

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AFHOS allows service personnel who have between four and six years

Qualifying applicants need to arrange a conventional mortgage from a high street lender which, together with their deposit, equates to 50% to 85% of the purchase price.

The Homes & Communities Agency (HCA) provides an equity loan for the remainder, which is secured on the property. The maximum loan is £75,000.

When it comes to selling the property in the future, the HCA receives a share of the proceeds equal to the proportion it put in.

Applicants must have sufficient funds available for your deposit, stamp duty and other fees.

There are no interest payments to pay on the Second Charge whilst you remain a regular serving member of the Armed Forces. But if you leave the Armed Forces, if you die in Service, or are made redundant, you (or your surviving joint mortgagee, where you buy with someone else, or your estate) will be liable to pay monthly fees calculated against the value of the Second Charge.

For more information, help and advice, click here.

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