£8000 for a house only???

Discussion in 'Army Pay, Claims & JPA' started by beerkeg, May 15, 2008.

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  1. Hiya, I am confused from the information I have been given by my clerks regarding the 8000 you can apply for to contribute to housing. Does the house have to be 50 miles from your parent unit, and what exactly are the criteria for applying? For example, if you were to buy a live aboard boat which you had obtained a mortgage for, could you still apply for the money, or does it have to be a house with a mortgage.

    Sorry to sound a little unsure but I cant get a straight answer from anywhere!

    Many thanks!
  2. If you are looking to buy a house you couldn't do any better than the Openmarket Homebuy scheme.

    It gives you a lump sum of up to 50% of the cost of your house as a low interest loan - therefore you may not need to use any savings you already have... or to get a Long Service Advance of Pay.

    Details are different depending on where you are but if you would like any more info PM me.


    Abacus is authorised and regulated by the Financial Services Authority.
    Member of SIIAP.
  3. Nothing like a free bit of advertising and selling YOUR products.......... :roll:
  4. Actually Homebuy Scheme is nothing to do with Abacus at all.

    It is looked after by the local housing authority for your area.
  5. Beerkeg is not obliged to buy anything, it's advice and an option none of use was aware of until now. If I'd have asked the question I'd have appreciate this info. then researched further etc. before signing up to anything.
  6. Beerkeg, you are on about Long Service Advance of Pay (LSAP). I dont have the details but your Unit HR will have - its all in JSP752, go ask them to clarify for you. Regards.
  7. Unfortunately, it's quite specific; you can't buy a caravan, a narrowboat or a yacht, for example - it must be a house. You can use the LSAP to assist in the purchase of your first house or improve a property if you have not previously applied for the loan. JPA then get second dibs on your property (the mortgage company get first dibs) if you sell.
  8. I am not convinced that the LSAP is much good because of the constraints placed upon you. The MOD charges an insurance fee and the taxman holds out his hand as well, IIRC.

    I looked at it when it first came out and decided against it on the grounds of complexity. And it was only £8k.

    Another poster has recommended JSP 752; I thought it was 754 but am happy to be proved wrong. Neither appear to be available at www.mod.uk but they are available on Armynet.

  9. Make sure you look into LSAP properly. I didn't do that and have ended up losing £500+ from my Annual PAYE Tax Coding - this works out at over 6% of interest because the Inland Revenue classify LSAP as an employer's loan. I would have been better off not bothering and just adding a bit to my mortgage. You should also be aware that legally the MOD own a chunk (albeit a small one) of your house until you pay the loan back. This is recorded as an interest on the Mortgage and (possibly) even on the deeds although I can't confirm that. Some mortgage companies and solicitors will even charge you extra for having another party involved. The maximum amout you can have is £8500 but if you only take £4999 then you won't be charged interest in the form of tax. All in all a pretty ropey deal and not likely to make a significant dent in your purchase price - unless you want to live in Wales?

    Good luck.
  10. The 'second charge' part is certainly an issue, one of my blokes tried to remortgage last year but no-one would touch him because of the second charge, i.e. LSAP - as Ethel said the MOD have an interest on your property, and in effect own £8k of it until its paid off