Joining the Army - step on the ladder?

Discussion in 'Finance, Property, Law' started by quitmy9to5, Sep 26, 2011.

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  1. Hi all,
    im starting phase one in November and wondered whats the best way to get on the property ladder when in the army. I dont have the best credit history due to lying ex!

    anyway..

    my parrner is fully employed and would like to have a gaol and options for a year or two in respects to getting our own place.

    any insight would be appreciated...

    thanks all
     
  2. Pls ignore I have had a liquid lunch!
     
  3. Depends on how bad your credit rating is (It doesnt matter much what your ex has done by the way so long as you weren't stupid enough to co sign anything).
    Are you intending on living in army quarters or the house you are going to buy (as renting it out and letting somebody pay your mortgage is the way ahead)?
    The Army has something called LSAP (its up to 8500 quid) which is a loan (megabucks eh?). Personally I think its a pain in the arse but that might only because I was turned down for it twice. (You also have to pay a tax if you borrow over 5k from the army).
     
  4. I'm assuming you meant a goal as most of the prisons appear to be full at the moment.
    However, starting phase 1 in November. Do you really want a mortgage around your neck as you have no idea where you'll be posted to in the future? I've always been an advocate of buying your own property in the past but not when starting out on a new career. Considering the way the housing market is dropping on a monthly basis, maybe you should wait a few years until you jump on this particular ladder.
    There used to be a scheme called the Armed Forces House Purchase Scheme (probably defunct by now) but it meant saving with a lender for 10 years or so before you got a guaranteed mortgage. Load of crap, I seem to remember, as the Halifax had no idea what this was when I took out my mortgage.
    IMHO, as you are just starting out, far better to rent at the start as you will be far more flexible on moving. Example, buy a house in Tidworth area cos that's where you're posted then up comes a posting to Catterick. Easy to up sticks if you are renting but far more difficult if you have to sell. Alternatively, get married and live up in MQs. Cheaper than normal renting and some of them aren't too bad which would give you a chance to save a bit. (Leaving the significant other in a house while you are at the other end of the country will not enable you to save money, believe me, I've tried it.)
     
  5. thanks for the replies guys. i was looking to buy to rent more than anything . and as mentioned it seems a great time to get on the ladder but another valid point, maybe i dont want the stress of it all now anyway...as im only coming up to 22 and just starting a new career whi i have no doubt will leave me with little/ no time ...
     
  6. Buying a property early in your career and letting it out is by far the best strategy for getting on the property ladder and for being able to achieve your ideal property when you leave the forces. So many leave it to the last minute, at time when they feel that they have earned the chance to live in their dream home, but in reality the purchase becomes one of massive compromise. There are not many situations where you have the opportunity to let out your property and have someone else offsetting a large proportion of your mortgage each month.

    With regard to poor credit history, this is something you can look into now to see what the damage is. Historically properties were blacklisted, so if you lived with someone who wasn't paying their debt it would affect you. However things have changed and they now just look at the individual. As Stacker1 stated, providing the defaults are not in joint names or your name you should be ok. We have dealt with situations in the past where people have taken out finance or loans to fund for example a car, the spouse has later taken the car and agreed to pay the loan and subsequently hasn't. Unfortunately, as unfair as it seems, a lender would not take this in to account, they take the very brutal view, that you took out a loan and didn't pay it.

    Take a look at your credit record on Experian and Equifax, these are the two main sites for lenders to check your credit. Sign up to a trial, get the credit record and don't forget to cancel the subscription or they will start charging you each month.

    Credit Check, Credit Score and Free Credit Report from Experian UK
    Equifax - Free Credit Report, Credit Check and Identity Protection Services

    A word of warning, use a broker for the mortgage, don't start shopping around for mortgages yourself as a way of finding out if you can get a mortgage. If there is anything in your past a mortgage decline on your credit record will not help your situation. A good broker should be able to head off any potential problems without making matters worse.

    As you are not looking to do anything for a couple of years, you are in a good position to start making sure your credit record is going to be clean by the time you do want to buy, of course it all depends on how bad the situation is. The best advice we can give in these situations is don't hide from the problem, find out if you have an issue and deal with it.

    We usually like to just post advice, but credit issues can be complex and are often beyond the experience of most people to deal with. If you would like some help or further advice, please do not hesitate to contact us, we can look at your situation free of charge and give you some direction.
     
  7. I wish someone had sat me down when I was young and single, with more money than I knew what to do with. I really wish that person had said "Look kiddo, you have no out goings now apart from a monthly haircut and boot polish. For goodness sake get a mortagage now on a one bed room flat and rent it out. When you have more money sell it and but a two bedroom house."

    But they never did, and thats why 23 years later I am still renting.
     
  8. Have you ever wondered why squaddies get married so young?
    ............Its simple - you get a dirt cheap house which is close to your place of duty. If you aren't married, the army doesn't give a flying fcuk about your partner, however serious your relationship might be.
    So if I was you I'd not look at buying just yet, if you just want to get on the ladder then buy to rent (but remember you need a bigger percentage of the price as a deposit!). But for God's sake, don't marry any old fat hideous bird just to get yourself a quarter! (Before you protest, I'm not insinuating that your partner matches this description) You will live to regret it, I know so many people who did just that, this is where the squaddie 6 month marriages come from!