Will the RN sub my mortgage?

Discussion in 'Finance & Pensions' started by Feagal, Jun 30, 2009.

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  1. The above sounds like a stupid question - and it probably is - but I was told this by a very nice chap at the RNAC I attended, during the presentation about pay and benefits.

    Does anyone know anything about this? He didn't have any info at the time but seemed very sure about this.
  2. Hi there,

    Hmmm... although that does also sound very interesting he was talking about my existing mortgage - that they would pay me an amount each month to keep my house on? I don't know, it all sounded like a fantasy to me... either way, I made my financial decisions months ago, with no knowledge of this mythical sub, so I will be sound anyway - not as sound as a pound though, otherwise I'd probably be fooked.

    Thanks for the feedback.

    p.s. now I think about it, could it possibly be tied in with getting an allowance for being away from my home? You know, to try and stop me being reduced to tears because of the stress of being away from my big bouncy bed and all that?
  3. You are right Jim that it is still classed as a second charge on the property and is registered at the Land Registry as so.
    I have acted for a few clients who have bought properties with the assistance of the M.O.D. They found the actual paperwork and getting confirmation that they had been awarded the loan a bit of a hassle..but once it was sorted it wasn't too bad. From a legal point of view,the MOD were fine and dare I say it,quite efficient! If you are getting a mortgage as well so then it is normally the case that you need confirmation that your lender is happy to proceed on this basis. Jim is also right to point out that there might be problems if you wish to re-mortgage your property as you will need consent from the MOD to do so. They could be fine about giving the consent,I wouldn't know as have never done any cases like that.
  4. Unless the regulations have changed recently the answer is no. LSAP was paid up to a limited amount to assist with a house purchase and there were a load of qualifiing strings attached.
  5. Are you joining the Navy or becoming a politition? :?
  6. "Are you joining the Navy or becoming a politition?"


    You never know, I might be able to do both and claim for a new type 45?

    Well, you guys seem to have put me right on that one - much appreciated!
  7. the_matelot

    the_matelot War Hero Moderator

    You're not right about the second charge requirement and the subsequent advice you've provided. The second charge requirement was removed several months back and Centurion sent letters out to all recipients of LSAP informing them of this with a form requiring them to sign it and return within 30 days of receipt.

    LSAP has to be paid in full by all those who leave before their pension point and payment commences on it either 2 years after receiving it (it's currently around £8500 in total and there is a requirement to pay interest on it if you take the full amount however I'd advise anyone to seek proper advice on it rather than from an internet forum) or in your last 10 years of service at the rate of about £70 a month. You can make overpayments as and when you want to.


    I think that the RNAC chaps were alluding to the Get You Home allowance when you're shoreside which is payable to people who own their own property or rent their own property 'up the line'. You do have to provide mortgage statements and council tax statements in your name before you get this-this prevents people from renting rooms with their spouses for peanuts and pocketing the difference.

    It is designed to enable people to get home to their property about twice a month and is distance set. If you're based 90 miles away from your home, you're looking at about £160 a month in your pay (tax-free as well) and if you're around 190 miles away from your home, you're looking at about £220 a month-if you're living 500 miles away from your home, then you've dipped out as you'll probably never get home regularly but you're looking at about £360 a month in your pocket. It's all relative though and you'll end up spending it all on petrol-I seem to do so anyway....
  8. Hi Matelot,

    That sounds like it might be the sort of thing he was banging on about - very kind of you to provide the info!

    However, by the sounds of it, I'll be better off dossing on a bunk somewhere and renting out the whole place for now.

    Sweet dreams everyone.

  9. Ok,I consider myself told. I haven't acted for any armed services personnel who have had the loan in the past few months so didn't know it had changed. Us in the legal profession are always learning, at least I know for next time. Apologies.
    I wonder why they have changed it though.
  10. tiddlyoggy

    tiddlyoggy War Hero Book Reviewer

    It's something that has been under review for a while (IIRC), to bring in line single men's benefits with married men is one reason.
  11. This sounds class for me! Can you claim for this as soon as you pass out of phase 1 or once youv completed all of your training?
  12. well theres still a possibility you may fail Phase 2 so I'm betting you'll actually have to be in the navy to get it :toothy7:
  13. Ninja_Stoker

    Ninja_Stoker War Hero Moderator

    There is also a scheme called the (download) Long Service Advance of Pay .

    It’s rather complex, but in bite-sized chunks:

    1. First time buyers primarily. (Reduced amounts for former house buyers)
    2. Re-paid during your last 10-12 years service. (If you leave, you have to pay back full amount.)
    3. £8500 Maximum loan – you do not see the money- it’s paid direct to the conveyencing solicitor.
    4. Must be a UK property
    5. You must have completed training
    6. You/your dependent family must live in the property.
  14. Well you're betting wrongly then. So long as you are able to take normal weekend leave, which you are in Phase II, you may receive GYH(T).
  15. The way things are going at present,... the Navy will soon be "Mortgaging the subs" 8O :oops: :cry:

    So back on thread........... :?:
  16. Unless this has also changed recently, there are tax implications of LSAP as it is classed as a benefit in kind. Sorting whether you need to pay tax is an individual responsibility but HMRC will tell you. With interest rates as low as they are even a full loan may not attract tax. My advice (based on the problems I have seen) is:

    In the old BR there was a requirement for every applicant to read the full LSAP chapter, I suggest you read the rules as well as take advice, apply early, fill in the paperwork correctly first time, check with HMRC, make sure that your solicitor knows about the LSAP routine and don't act suprised when you're told you must repay it in full before you can submit your notice 8O !!


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