Mortgages for Matelots

Discussion in 'Current Affairs' started by Always_a_Civvy, May 18, 2007.

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  1. I thought that the following item from today's Times (18 May 07, p32) might be of interest. Actually my heading is a little disingenous. What Des Browne is proposing is facilitating service personnel with 5 years or greater continuous service, buying their own homes, possibly with a grant or allowance of £10K.
  2. 10K won't even make the deposit on an avergaed price house these days sadly. Better to get a higher paid job than waste 5 years.
  3. In the late ninties the LSAP was £8,500, and you could buy a perfectly good terraced house in London for £45-55,000. Now the same house would cost about £180,000++, so to keep up the LSAP needs to be about £30,000 otherwise what is the point?

    Is Browne really wanting to help serviemen or make a soundbite?
  4. chieftiff

    chieftiff War Hero Moderator

    I know I am getting a little cynical but isn't this just another fishing exercise on behalf of the governments "rule by media" initiative, where by revealing a little info to the press and waiting for criticism/ support New Labour arrive at policy?

    For those who aren't aware a concept paper is due to be revealed this month (AFPRB Annual Report 2007 page 3 para 1.12) entitled MOD's Strategic (there's that word) Remuneration Review, the final report is due to be revealed in December.

    As has been mentioned £10,000 is frankly derisory, I took a LSAP in 1988 of around £5200 which was the max I could get at that time, it allowed me to buy a 3 bedroomed terrace at £26,000 it was my deposit of 20%. Taking that figure today and using the economic rule of thumb that money devalues by approx 1/3 every 10 years that £5200 would be worth £2311 yet the average house price for a similar propert is in the region of £150,000 which would give a 1.5% deposit. The current LSAP of £8,500 set in the early nineties represents a deposit of 5.6%. when it was set it was approx 15-20% remember it is merely a low cost loan to encourage house purchase, not a handout.

    I have no doubt the overall benefits package including travel, pay, pension and other benefits has seriously been devalued. Best the Strategic Remuneration Package attempts to redress the balance and not just pander to public opinion!
  5. I thought that the Navy had a mortgage/loan thing going years ago? They had to make it tri-service 'cos the Army and Crabs didn't have it.
  6. As usual, this media snippet only tells part of the story. My (limited) understanding of this embryonic proposal is that service personnel would be given a form of housing allowance to buy in the private sector. Clearly a £10k lump sum would be about as much use as a "chocolate fireguard". The allowance would be offset against a reduction in the huge amount of money currently being used to provide subsidised SFAs (MQs) i.e. there would be fewer SFAs to subsidise and maintain therefore potentially making the whole concept "cost neutral".

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