Armed Forces Home Ownership Scheme

Discussion in 'Current Affairs' started by off_les_aura, Jan 26, 2010.

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  1. Just got notification of this new scheme and I was hoping it would be the answer to getting out of MQs. Unfortunately it's only open to those who have served between 4-6 years at the time of application.

    What a swizz :(
  2. Has the Royal Navy long service advance of pay for house purchase been abolished?
  3. No, but what does £8500 (max LSAP) get you these days when most mortgage lenders want a 20% deposit for First Time Buyers? Average price for a decent 3-bed semi around here is around £200K

    LSAP hasn't kept up with the rise in house prices since it's introduction. £8500 used to be your deposit - now its around a 1/3rd of your deposit.
  4. In the days when I used LSAP it barely covered the deposit which in those days was 10%,savings also had to be used. I like many others scrimped and scrapped in an effort to get onto the housing ladder.
    Home ownership is not a right but with prudence it can be achieved. For my family and me it meant No holidays, running an old banger,basic food, no nights out, no new clothes except for the kids uniforms and much more for a couple of years.
    This did not stop once we had bought our house as we stretched ourselves to the limit.
    Not a lot of fun, meanwhile my mate in married quarters had he car and holidays etc.
    So house ownership is not all fun, looking long term though I reckon it's worth it. Go for it best of luck with your saving.
  5. I am your mate in married quarters - 3 cars, holidays, shopping sprees etc. I've always wanted to enjoy my money whilst I'm young and never wanted to have to eat beans on toast every night just to put a roof over my head. Friend of mine bought 3 years ago has a £1400 a month mortgage and his missus has to work every hour God sends to make the payments and supplement his £40K CPOs wage.

    Guess I'll just have to take my pension and lump sum and emigrate to a country where land isn't at a premium and house prices are affordable!
  6. Hope you enjoy Poland and the Eastern block countries :p
  7. There is always the Government scheme, me and my girlfriend are going for this year. Its aimed at key workers and first time buyers. There are pros and cons to it off course but its some thing for people to consider.

    Also quick question while we are on the topic, if i go ahead with the mortage, im soon to be re-joining next year, my PEDA is this year, but i wont be going in on the recruits wage. Whats the deal with people that have a mortgage ?, im pretty sure its up to 50% of your wages, but i stand to be corrected.
  8. Never rated Key workers scheme because the amount that you pay in rent, you might as well pay in mortgage. And you so have to jumpt through hoops for your Housing Association if you want to do anything like add a second charge or rent out. Complete nightmare.
  9. You get the choice after the five years ti either pay back in rent or to pay it off, it all depends what housing company you go with from i have found out so far.
    But as mentioned getting on the housing market as a first time buyer is hard enough as most banks are asking for 20% deposit.
  10. FlagWagger

    FlagWagger Book Reviewer

    Canada is neither Poland nor Eastern bloc and has significantly less population and significantly more real estate than the United Crowd-dom of Great Britain - but, please don't tell everyone in case they all want to come here!
  11. You get the choice after the five years to either pay back in rent or to pay it off, it all depends what housing company you go with from i have found out so far.
    But as mentioned getting on the housing market as a first time buyer is hard enough as most banks are asking for 20% deposit.
  12. chieftiff

    chieftiff War Hero Moderator

    Did you ever wonder why it was called the Housing Ladder as opposed to the housing Elevator? You start at the bottom and climb, or you don't bother and save every penny you're not spending whilst in the MQ and hit the market when it's at a low.

    Alternatively you can accept that you'll spend what would have been your wealthier years living between a recovering crack addict called Porsche who screams constantly at her yapping bull terrier and an unofficial scrapyard "run" by a 50 year old guy called Gavin who has 12 year old "friends" around for "parties" :lol:
  13. Canada was where I was referring to FW ;)
  14. Thank you Daffy, I am well aware of the situation being a conveyancing lawyer! It has been so bad I had to take a 14 month sabbatical from my career, and I am only just back in employment again.
  15. FlagWagger

    FlagWagger Book Reviewer

    Good choice - a total contrast to the UK.

  16. Congratulations Rosie.
    Does this mean that we are now officially out of recession?
  17. wave_dodger

    wave_dodger War Hero Book Reviewer

    It really comes down to personal preferences and what you can afford - we struggled to buy a bigger house before we had a family about 12 years ago and wholly down to luck we have ridden the housing market well, even with events of the last 2 years. There is no way we could afford a similar house now and we just managed a basic Med holiday and ran two average cars. Hopefully that means there is more of the gratuity and pension for the niceties of life later but having seen some people live the MQ dream of nice new cars and lots of hols I have been envious.

    LSAP was one thing which drove me mental when JPA and allowances were being considered. Even though there was no new money Defence could have effectively rebalanced allowances to raise LSAP to a sensible figure but the Army were very much against this as in their view it would have eroded the Regimental system. It was argued against - on the basis that soldiers could get on the housing ladder and make their civilian lives easier but that was ignored.
  18. Good for you Wavedodger
    I obviously did not complete my story, after many years of penny pinching I am now in a position to take a couple of foreign holidays a year, have money saved, and can now almost afford anything that I want.
    In fact I am looking forward to a very comfortable retirement.
    Shame though that this position has come at age 64 when I coul have done with the money twenty years ago :p
  19. so it would seem! Be even better when I get promoted and go full time!
  20. chieftiff

    chieftiff War Hero Moderator

    20 years ago you would have just p!ssed it up the wall though Slim, better to have it now. It's got to be more fun watching your kids faces when you announce you're off to spend their inheritance at some Sandals resort in the Caribbean :wink:

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