Do the Forces help with first time house buy? new regs?

Discussion in 'Army Pay, Claims & JPA' started by olddearhunter, Apr 16, 2006.

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  1. To anyone who can shed light I would be most grateful. I believe the rules have been changed...JPA etc. Is the Army coming into line with RN , poss RAF?

    Im hoping to buy a house, later this year. I believe the current rules can help an advance of pay if you have served more than 8 years( which i havent), and it is a first time buy. Whereas RN / RAF rules are 4 years.

    I think you can get up to 8k. That would be very useful for fees/deposit/survey obviously. As I intend to stay in for 22, Id like to get on housing ladder now, and not wait till i leave without a home and struggle to buy then.

    Im single, intend to stay that way, and I will probably rent out the propert after 12 months in accordance with the mortgage conditions. If anyone has any info on incentives for first time buyers from govt then that too would be a bonus.

    I spoke to the Chief Clerk at my Unit (not the paywog who is useless/never there) and the response was a very unhelpful 'nobody helped me buy my house, why should the army help you?' meaning why should the chief clk help me! lazy useless feck).

    Can anyone advise me? Constructive comments welcome. Thanks. (PS i have searched Finance and RHQ but couldnt find an answer)
  2. The new house purchase scheme is available in Army now if you have served 4 or more years, according to armynet. Up to 8k interest free
  3. thanks mate i shall take a look.

    if anyone else has advice on this topic, or experience, feel free to share!
  4. You should be aware that there are also Inland Revenue tax implications from the LSAOP. I got caught out (long time ago when interest rates were sky high). Unless the rules have changed (?) the Inland Revenue class this as a "Benefit in Kind", each year they set a rate of interest based on the Bank of England rate, they set an amount of interest above which you will pay tax and then apply this to your outstanding LSAOP (at the mid-point of the tax year). ie they say if you had borrowed the money from the bank at X% APR you would have paid £Y amount of interest, you only paid £Z to the service and therefore the difference is unearned income and taxable. Might not be a great deal as interest rates are so low. Worth checking though.

  5. used lsap last year & have had no problems regarding the tax far (fingers crossed)
  6. Had a look, and depending on your current salary, you can borrow up to 8 grand (or 180 days gross pay, whichever is the lesser). You will only pay tax on the outstanding balance if it is above 5 grand, so not too bad! Was thinking of using this myself, but you can't rent out the property for the first year, which would eat up a lot (if not all) of the benefits gained. I can't live in it as I am based overseas, and the property must be UK purchase only. The changes all came about as at 01 Apr 06. Still if you took only the 5 grand, then it's a cheap a loan as you will get! Also been told you don't pay anything back for something like the first year.
  7. My problem was that I didn't inform the tax office, they picked me up on a "regular" trawl of LSAOP applicants.