mortgages

[jammothehut]

does the royal navy give any help when it comes to first time buyers. theres a few gash dits floating around so i wonder if any1 could help.

 

[rosinacarley]

Dunno how long you have been in but what about LSAP? There are certain rules in respect of the granting of the same, but it usually amounts to £8500 not repayable until towards the end of your service. It is interest free, and is used as help towards deposit, stamp duty land tax, disbursements and solicitors fees. The amount granted to you, if you can receive it, will be calculated when your solicitor has confirmed all the details to Centurion.

Check your ability to get the same with your UPO and ensure that you get a good conveyancer who understands the complexity of the labyrinth that is Centurion.

 

[Guest]

Been out of the loop for a while - any pay writers help me out on this one but I believe you have to be on the trained strength now (as in out of training), you apply for the £8500 and start paying it back in the last 10 years of service or straight away if you have less than 10 years to go. It's good for surveyors fees, tax on the house and should give you a little bit towards the deposit!

By the way it is intrest free, but you have to pay a monthly fee to the Navy for having it called "premiums" still much less than the intrest rates down the bank though.

Beware though that you can not leave the Navy with a crown debt so it will have to be paid back before you leave and if you rent the house out or get a lodger you have to inform the Navy who may charge you a fee for renting. Ditto with using your house for a business.

 

[Heart-of-Oak]

From www.rncom.mod.uk

LSAP:
LSAP is intended to assist Service Personnel over the age of 23 and serving on pensionable engagements/commissions who have not drawn any terminal benefits, given notice or applied to leave the Service prematurely, to enter the housing market. The amount of advance to applicants who have not owned a house in the last 12 months is limited to the lowest of £8500; 182 days gross pay or the difference between mortgage obtained and purchase price plus certain expenses. Interest free repayment is over a period of 10 years commencing 2 years after the date of the advance. However, if an individual has less than 10 years to serve, repayment starts immediately with the balance recovered from Terminal Benefits. Personnel are advised to visit their Unit Personnel Office or Ship's Office to obtain the full rules and regulations regarding LSAP.

I've heard it's going to increase to around the £30,000 mark once JPA (new tri-service (joint) pay/admin system) is in and things are more equal across the services. £8,500 isn't a huge amount nowadays for a house anyway. You must be on the trained strength I believe (that's what stopped me using it as I bought a house when I was 2 years in service but still training at Collingwood. - still at least it's not hanging over me as a trap to keep me in!)