Virgin Money and Clydesdale Bank will now accept the 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.
The Forces Help to Buy loan and insurance payments should be included as expenditure within the Virgin Money or Clydesdale Bank application so they know how much the customer will be paying.
The mortgage providers do not require the customer’s personal information note from the MoD which confirms their loan.