Forces Help to Buy & tax implications

A question about : Forces Help to Buy & tax implications

I have been working out a budget in order for us to buy our own home using the new forces help to buy scheme.

The document communicated from the MOD contains a calculator which enables you to work out any tax changes that loaning the money will have. I cannot make head nor tail of it. I've contacted the AFF and the NEM teams and they don't know how it works. We were looking to borrow between 15-20k.

Does anyone have a simple way of working out what the tax implications of getting the loan would be? Thanks in advance. (And I hope this post makes sense!)

Best answers:

• If anyone else comes across this thread who needs the above information, a quick call to HMRC & they will work out the extra tax implications for you
• Out of interest was it a significant tax impact? I was going to apply for LSAP but that's being suspended while they try this out, not sure whether it's going to benefit me or not!
• In laymans terms you are not paying tax on the amount of the advance - the tax is calculated on the interest you would have paid had it been a normal loan.
• Does anyone know which companies are offering mortgages with this scheme? We had a mortgage agreed in principle with barclays but when I enquired about this scheme I have been told they are not participating and head office are not even aware of it! We want to look elsewhere but I'm not sure how to find out who is supporting it.
• I'm also looking to use this scheme, I've provided all the details to the mortgage adviser at halifax and not heard a whisper
  Very frustrating, as I have found the house I want to buy and want to get everything in place come April the 1st so I can get started straight away, don't want the house selling in the meantime
• Thanks. We've contacted Forces Financial and waiting to hear back from them. There seems to be very little info around, in one breath we are told most places will run with the scheme and in the next it's only a select few.
• Just found a load of info on jsp464 if that helps anyone
• All I have seen in JSP 464 is promises! I have sent the entire chapter on the FHTB scheme to the mortgage adviser at the halifax but not even received acknowledgment of the email
• i am currently trying to get an 85% mortgage from Barclays and have had the same problem, despite Barclays announcing that they are committed to helping the armed forces get onto the property ladder. it seems bizarre to me that the scheme launches 1st april yet none of the lenders have any information on it. i may loose out on my house because of this, it's so frustrating. i have had to borrow 9 grand from family as no one would give me a mortgage of 90%! i am currently using forces financial but i'm not hopeful as a mortgage advisor from barclays informed me that their head office have had nothing informing them of the scheme.
• There is a new leaflet out from the Chief Of Defence Staff, title The Armed Forces Covenant and You and it mentions that the help to buy scheme is a major part of it and if you any problems you should email them. The email address is on the leaflet.
• Hi all, just a point from my side on this, me and my partner are due to complete soon and I'm getting the fhtb for 17500. We initially tried Halifax and they refused because of the fhtb, Barclays followed suit so we bypassed the mortgage advisor and went direct to (both of) our bank, HSBC. Although they said we should have no issues the guy we met there was 100% straight with us and said that they were unlikely to accept the fhtb as from the last statistics he saw they had only approved 8 or 9 applications and that is purely so they can advertise that they accept the fhtb.
  Additionally I'll add that we are combining the fhtb with the government 20% scheme. HSBC and Barclays are very reluctant to accept either scheme but have to approve some just to show they are 'onboard' with the idea.
  Halifax would accept but not with the fhtb involved. Finally our mortgage advisor called natwest and they accepted without hesitation the application, the offer was approved and now we're just waiting to exchange the contracts.
  My one bit of advice would be not to inform the bank of your intention to use fhtb, your solicitor will be the one who deals with jpac and they'll be issued the money prior to exchange of contracts.