Armed forces get housing ladder boost

Posted on 31 December 2007 by Charcol

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Members of the armed forces are to be offered extra help to get a foot on the housing ladder, the government has announced.

The move is an extension of the HomeBuy scheme, whereby key workers can access low- or zero-interest shared equity home loans, backed by the government and selected mortgage providers.

Until now, most Ministry of Defence (MoD) personnel have only been eligible for the New Build and Intermediate Rent (discounted rent) schemes.

Under the new rules, service personnel currently in MoD quarters will also qualify for a shared equity loan of 32.5% towards buying a property. The government says that this means a couple with a joint income of £40,000 would be able to boost their mortgage from a typical £160,000 to around £210,000.

Conservative shadow defence minister Gerald Howarth is quoted in the Guardian as having said that he welcomed the new measures, but he also warned that the "devil is in the detail".

The government announcement comes after a period of sustained criticism over the funding and management of the armed forces. Just over a year ago the former head of the Army, General Sir Mike Jackson, said that the standard of some staff accommodation was "frankly shaming".

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