Home Ownership

#1
The subject of home ownership still doesn't seem to be getting taken seriously, despite it being a recurring theme on every CGSs briefing team visit i've ever been on.

i'm now in a position to write to my MP with a cc going to john reid about the lack of sp given to the army, the disparity accross the 3 services and ultimately, whilst many schemes are in place for other public servants and key workers, these are not extended to the army. eg, social workers (of all people) are entitle to affordable housing normally 15-25% discount on new developments!

the final nail in the coffin is the incremental increases to SFA.

therefore, i ask for any original ideas for encouraging home ownership into the army across all Arms and services and including all ranks...this is indeed a rank range issue...i know of many snr officers who have yet to get a foot on the elusive property ladder.

ideas for starters maybe:

- a sizeable retention bonus only to be used for home purchase- ie a replacement for 5 yr money to be extended to all ranks and to reflect the current housing market, ie, £15K in return for say 7 yrs ROS?

- an interest free loan to assist with deposit?

- a government sponsored mortgage lender that offers preferential rates and understands the extingencies of the service

- a rentback scheme, eg, when a serviceman has to vacate his own home on posting, DE rent his property at market thus providing guaranteed rental income and peace of mind....

am i barking mad...or are these realistic?
 

dpcw

War Hero
#2
I managed to buy a house as a Lance Jack with none of this type of support. Being posted elsewehere maklkes things difficult but not insurmoutable - just had to save for a few years, and volunteer for extra NI tours.
 
#3
goon_bde said:
- a rentback scheme, eg, when a serviceman has to vacate his own home on posting, DE rent his property at market thus providing guaranteed rental income and peace of mind....
I loved un-informed rants. You can rent your house out to the Social Security bods. They pay your Mortgage Value +3%. They even make good any damage caused while they are renting it. You get the cash even if no-one lives there.

Downside is that you have less than desirable people living in your house and you make less than on the open rental market (typically around 8%).
 
#4
When a civil servant (D grade and above, so nearly everyone!) is moved in the Public Interest they are entitled to apply for A YEARS ADVANCE OF GROSS PAY, repayable interest free over 25 years as a deposit towards the new house. They also receive mortgage relief payments for years 1-5, which tapers of from years 6-10 (These can be hundreds of pounds a month).

What are postings? i am sure they are the movement of an individual, in the Publics interest.

Get used to being shafted, thats the pension trap. :evil:
 
#5
Renovatio said:
When a civil servant (D grade and above, so nearly everyone!) is moved in the Public Interest they are entitled to apply for A YEARS ADVANCE OF GROSS PAY, repayable interest free over 25 years as a deposit towards the new house. They also receive mortgage relief payments for years 1-5, which tapers of from years 6-10 (These can be hundreds of pounds a month).

What are postings? i am sure they are the movement of an individual, in the Publics interest.

Get used to being shafted, thats the pension trap. :evil:
Can you provide a link to this info, Renovatio, because I'm 99% sure that you're talking crap.
 
#7
goon_bde wrote

an interest free loan to assist with deposit?
is that not what the LSAP is for, which will soon be available to everyone with 4 years service i have read.

i too like dpcw manged to buy as a lance jack & yes money is tight but at least i know that each mortgage payment is knocking cash off what i owe rather than just doing nothing like our quarter rent payments.
 
#8
StabTiffy2B said:
Can you provide a link to this info, Renovatio, because I'm 99% sure that you're talking crap.
get on a RLI desktop pc and do a search of Defencenet. Make sure you tick the search all MOD websites box. Search for advance of pay. If you doubt what i say ask anyone at Mainbuilding, DLO, DPA or the other civil service centres of excellance :wink:
 
#9
Renovatio said:
StabTiffy2B said:
Can you provide a link to this info, Renovatio, because I'm 99% sure that you're talking crap.
get on a RLI desktop pc and do a search of Defencenet. Make sure you tick the search all MOD websites box. Search for advance of pay. If you doubt what i say ask anyone at Mainbuilding, DLO, DPA or the other civil service centres of excellance :wink:
I'm just off for the weekend, but I'll check this on Monday. As a D Grade Civil Servant, I should know :wink:
 
#10
StabTiffy2B said:
I'm just off for the weekend, but I'll check this on Monday. As a D Grade Civil Servant, I should know :wink:
Finishing for the weekend on a thursday? i believe you definately are a civil servant then :D
 
#12
A_Knocker_Till_The_End said:
goon_bde wrote

an interest free loan to assist with deposit?
is that not what the LSAP is for, which will soon be available to everyone with 4 years service i have read.

i too like dpcw manged to buy as a lance jack & yes money is tight but at least i know that each mortgage payment is knocking cash off what i owe rather than just doing nothing like our quarter rent payments.
well done....

if we're having a dick measuring contest i bought a house as a spotty 2nd Lt, and a mortgage coupled with university debts, i can assure you i was much worse off than a Lance Jack and of course it has paid dividend...

the idea of this thread was to generate some original thought on how we could make the system better for those that haven't taken that bold step yet...

Ref LSAP...elaborate...you tell me what the current criteria is...its open to very few people and is inadequate and i suspect the next iteration won't be much better
 
#13
StabTiffy2B said:
goon_bde said:
- a rentback scheme, eg, when a serviceman has to vacate his own home on posting, DE rent his property at market thus providing guaranteed rental income and peace of mind....
I loved un-informed rants.
what? it was neither un-informed nor a rant (BTW there's no such word as un-informed, either ill-informed or poorly informed!)

it was a wild-card suggestion as to how we could make home ownership more appealling to the Army - ie, a concept, an idea a pipe dream
 
#14
From the Civil Service Management Code:

http://www.civilservice.gov.uk/management/code/index.asp


Interest-free loans for house purchase

8.3.8 Where departments and agencies offer interest-free loans for house purchase, these must not exceed 12 months salary, and must be offered only where staff:

a. move to areas where housing costs are higher; or

b. are first time purchasers; or

c. have bridging loan and mortgage shortfalls (see paragraph 8.3.7).

Repayment period must not exceed 20 years, and staff must agree to repay the loan on demand when they cease to be civil servants. Where financial hardship arises following redundancy, death or early retirement, departments and agencies may allow staff to repay the loan over the original period and/or waive repayment on outstanding interest-free loans.

Grants for house purchase

8.3.9 Departments and agencies may pay grants for house purchase where they would otherwise offer an interest-free loan. The maximum grant must be the value of interest foregone on a loan of up to 12 months’ salary repaid over 20 years; and staff must agree to repay the grant, in whole, or in part, upon demand, when they cease to be a civil servant.
 
#17
Thanks for finding the link Oracle, i thought you could only get it on RLI.

Isn't funny that the MOD says there is no money to help servicemen and women with house purchase when the millions of civil service personnel get this assistance!
 
#18
Goon-Bde, I think you need to consider the basis for support for HM Forces home ownership at a state-assisted level. Don't get me wrong, I think service people deserve key worker support....

....but!

"Key Workers" get assistance with housing because they are usually required in a certain location where there are retention problems, i.e. a teacher at a London state school. The assistance is targeted for that reason. It isn't a case of "the teacher deserves this because they really are a top bloke" it's a case of "if we don't do this then the teacher will be sleeping on a park bench and not teaching maths."

This isn't an issue in the army where accommodation is provided wherever you are. I'm not talking quality, BTW.

So why, in a harsh, resource-driven world governed by a Treasury obsessed with Skools'n'Hospitals would they pour cash into schemes for HM Forces?

To wit:

1. Yes, retention. OTOH, is the retention problem so acute that the MoD need to implement a scheme? If they don't have to they won't.

2. Welfare/ Resettlement. Again, is this in HM Treasury's interest? HM Forces types are pretty resilient and get on with it, apart from the poor sods you see with a bottle of meths on the Embankment that is.

3. "Because the Boys deserve it?" True, but no cigar, this is Gordon Brown we're talking about. There's a school up in his constituency that needs gold-plated bunsen burners. Or something.

So, sorry to bang on about it some more but if you had a proper armed services federation they could negotiate utterly excellent, bespoke, HM forces friendly mortgage schemes that would bypass any need to rely on that creaky, not-very-reliable thing we call the government and it's crumbly granny-in-the-attic we call the MoD.

Just a thought.
 
#19
for the lsap details, see link:

http://www.army.mod.uk/linked_files/ag/soldierwelfare/supportagencies/aws/pdf/051201_U_LSAP_3400.pdf

as to home-ownership everyone will be doing it soon, forces seem to driving out the pads probably so they can sell of the old quarters & bring in some more revenue, if these quarter gharges are going to be as high as anticipated.

goon_bde - don't want a dick measuring contest cheers, i know its all legal & that nowadays but it still does not float my boat, sorry fella.

just stating that it can be done but belts need to be tightened, my kids don't get half the treats they used to but i personally did not want to waste all my gratuity payment as a deposit.

a lot to do with home ownership will depend on the area, i could never afford the size of place i bought down south not a hope in hell.

something does need to be done i totallyagree but at the end of the day will the government really be that bothered if we give them back our gratuity payments as house deposits????
 
#20
I currently work wit Royal Marines - they all own their own homes, as the Navy gives them LSAP at 23 yrs old or 4 yrs service(whivhever is later).

If this was open to Army personnel many would buy earlier and not be as irresponsible with their money as i have been!

Equality I say, damn your eyes Gordon!!
 

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