Using LSAP as a house deposit

stew1975

SarajevoSimmo wrote: »

The Banks/Societys will accept it as a deposit but they will view the advance as another committment (which of course it is as you do have to pay it back at the rate of approximately £80 per month from your salary) and they will take this into consideration along with your other outgoings when considering your suitability for a Mortgage.

Is true, but i got a letter from my PSF stating that i had completed 12 years service and that if i was to leave I would be able to cover the loan with my pay out. Tha bank were more than happy with that.

titch1984

I am currently serving and bought my first house with my partner just over 6 months ago (Yay!!).
I applied for my LSAP to help boost our deposit and was successful. At the time of application, I only had 2 years left to serve but as soon as the house purchase was through I applied to extend to 12 years which didn't take long to come through.

To be honest getting decent admin staff who are aware of the ins and outs of LSAP's is pot luck.

Hope everything gets sorted out soon and good luck with the baby! :-)

Cod_Almighty

If you are in doubt as to your eligibility to LSAP, then you should fill out the LSAP forms (JPAE024) as if you was going to apply it and state at the top of the forms in red ink "FOR ENTITLEMENT ONLY". They will then get back to you within 2 weeks with an answer. This cuts out the middle man as the rules and regs can be quite confusing.

Hope this helps.

dunloadin

Looks like the rules for LSAP have changed a bit since I left. Thought you had to be on a 22 year engagement to qualify (any balance remaining to be paid out of your lump sum on leaving), could this be why the LSAP was refused?

Paul843

Wonder if anyone could shed some light pls,

I have been looking at the JSP 752 and it says that I can increase my payments at any time as long as I meet the minimum payment amount required, however, it does not say how to go about this.......do I just send them a cheque? or can this be done through my pay at source as this would be the easiest option.

Thanks in advance :beer:

ajmoney

I used LSAP as a deposit for my house of £7000 and the mortgage adviser was the one who told me I could use the rest for fees. For me thay did not worry about the fact that this is a loan because the payments once you start making them come directly out of your pay. See if there are any mortgage advisers in the area who understand LSAP as they will be able to help around any of these areas. I hope this is of some help.

Paul843

Paul843 wrote: »

Wonder if anyone could shed some light pls,

I have been looking at the JSP 752 and it says that I can increase my payments at any time as long as I meet the minimum payment amount required, however, it does not say how to go about this.......do I just send them a cheque? or can this be done through my pay at source as this would be the easiest option.

Thanks in advance :beer:

Sorted, have increased payment amount :j

milly57

We had no trouble at all applying for and getting LSAP and we completed on our house 3 weeks ago. You apply for it and it gets paid direct to your solicitor. The only thing I will say is that it takes time for all the paperwork to submitted and this did delay our completion by 2 weeks but we were not in a chain so it was not a problem. I think it takes the minimum of 6 weeks.

BigLee_24

Im looking at using LSAP to buy a house and I was told by one of the UPO staff that it is designed for the deposit and legal fees etc etc to buy the house but you have to have a solicitor to get the money payed to who will then issue it out as needed and have a morgage agreed in principle in order for the money to be released..... He also told me that you pay the money back in the last 10 years of service or if you leave before then it comes out of your leaving payment..... Also not sure how true this is but heard a buzz that amount has gone up from £8'500 to £15'000 but dont quote me on that......

airbornedan

My wife and I bought a house in Feb 2007, we used the LASP for the deposit and put a smaller amount to it ourselves to bump it up a bit. Certain mortgage providers won't accept this as a deposit but there are others that will. We then got posted and let the house. We have to pay a small amount of interest now we've let it but it starts of at around £35 a month and goes down as you reduce the balance, far better than any high street loan.