Potential new recruit with a mortgage

Discussion in 'Finance, Property, Law' started by Eliza1001, Jul 18, 2008.

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  1. Hello
    I'm hoping for some pearls of wisdom!
    I'm thinking of a rather major career change. I'm currently a medical practitioner who likes to play a musical instrument in various bands as a hobby. I've grown increasingly disillusioned with the NHS and medicine in general and I'm seriously considering joining the Army as a musician.

    The one thing holding me back is that although I am single and unattached I have a £200,000 mortgage on a house which is worth £300,000. I really don't want to sell, given the current financial climate, so would like to let my house out until such a time as I would live in it again or sell it.

    My query has three aspects:
    1. My fixed rate deal ends at the end of the year, so what would the bank say if I changed to a new deal, then shortly after requested permission to let the property? Should I tell them the situation up front?

    2. I obviously couldn't afford a mortgage on a new-entrants pay (or any Army salary I might receive in the near future). Can I count the rental income as declared income on any future mortgage application?

    3. I understand the Army will not take recruits with certain levels of debt. I understand the mortgage is a debt, but if I have already rented the house out prior to joining, thus having a source of income to cover that debt, would this be acceptable?


    Thanks in advance for any useful advice
    Eliza
     
  2. Are you serious? Don't join.
     
  3. Can't see a problem. The rent should more than cover the mortgage repayments and at 66% Loan to value there should not be a problem with the bank, either.

    Plus, once you are in, the Army offers help in purchasing a home. I don't know the details but it would be a lot more attractive than whatever arrangement you have now.
     
  4. What he said.
     
  5. The first part of this post is fine but the second part is totally wrong - I assume you are talking about LSAP - no help in this case, firstly the home is already owned, secondly to qualify you need to have served for 4 years from completion of Phase 1 training!

    PW
     
  6. If you are a doctor, nurse or physio you could just join the RAMC. It seems to cut some of the bullshit that the NHS doles out. However, if you are an osteopath or chiropractor, then just foad.
     
  7. msr

    msr LE

    Or you could join the TA.

    msr
     
  8. You don't say what sort of medical practitioner you are, but on the assumption that you've got professional qualifications and are somewhere early on in your career...

    Don't jack it in to join the regulars. I'd recommend the TA medics - very highly valued (the Defence Medical Services couldn't function without them), as many op tours as you can get your boss to agree to, and still very much a change from 'normal' life.

    That's my immediate instinctive reply: PM if you have questions (though I'm neither TA or a medic, so may be of limited use...)

    edit: damn you msr. Beat me to it.
     
  9. SOunds very dodgy to me.

    How about:

    Rent the house out and rent yourself a modest flat whilst "biting the bullet" and sticking with your job.

    Join a TA RAMC unit.

    If the renting out looks as though it's working then look for FTRS Full Time Reserve Service post and then consider a transfer to the regs.

    Keep music as a hobby.