Armed Forces Home Ownship Scheme

Cod_Almighty

A new scheme to assist serving personnel onto the housing market.

Read on ...

https://www.afhos.co.uk/index.asp

Regards,

John Boy

System

Please note you are not eligible if you have LESS THAN 4 YEARS or MORE THAN 6 YEARS service

Pretty limiting!

Cod_Almighty

But very helpful to those that are in them brackets!

We have just proceeded with this and have been accepted. They will provide 42% of the value of our house, up to £75,000, interest free for the lenght of time that I am serving. You don't need to have savings as a deposit as LSAP (if eligible) will be used.

And can rent out immediately.

Bottoms up if you ask me.:beer:

CHR15

Sounds like Shared Ownership

Barge...... and Pole spring to mind.

Have a read of a few posts about Shared Ownership pitfalls.

Cod_Almighty

Not quite, it's a second charge, shared equity not shared ownership.

http://www.mablaw.com/2010/02/shared-equity-shared-ownership/

http://www.mortgages-online.co.uk/first_time_buyer/shared_equity.htm

Cat695

CHR15 wrote: »

Sounds like Shared Ownership

Barge...... and Pole spring to mind.

Have a read of a few posts about Shared Ownership pitfalls.

SO not only will you have a mortgage to pay but this loan AND your LSAP just remember that people

HOWEVER if its interest free then surely interest free on 70k is better than interest on 150k??.

But could you pay back 70k over 6 years??? to keep the interest free status......

bobbieboy69er

Who said anything about paying back 70K over 6 years?

Its an interest free loan for the whole time you in the Forces.

If you leave then you have to start paying on a increment basis. e.g. 1% after 1 year 2% after another and so on until your on par with the rest of the mortgages out there!

If you ask me its well worth doing.

In short..... you earn around 17-19K a year as a service man/women would around the 4-6 year point. you can afford a mortgage of around £65K + a 5% deposit. And when i say 5% deposit its just on your half so about £3.5k. This will give you a mortgage payment of around £370 per month on a house worth up to around £135k.

Then........ the scheme allows you to rent out if you get posted else where.... now depending on your area you should be looking at around £600 per month rent, now you do the maths! your well in pocket! All you have to pay to rent out is £200 a year!

Now to me this is the best deal around! jump on the band wagon ladies n gents....

1012donna

Once again, the guys and girls who have committed most of their adult life, having served 15, 20, 25 years are being side lined and can't benefit from this scheme. I feel that these are the people who should be gettting extra incentives and schemes not the people who have done 4 or 5 years and could leave at the drop of a hat.

davilown

1012donna wrote: »

Once again, the guys and girls who have committed most of their adult life, having served 15, 20, 25 years are being side lined and can't benefit from this scheme. I feel that these are the people who should be gettting extra incentives and schemes not the people who have done 4 or 5 years and could leave at the drop of a hat.

Yes I feel that this would have been better offered to personnel who are signed on for 22, are medically able to deploy and would not take up the Continuity of Education Allowance for their children.
At least it would save a lot of money in the long term

Cod_Almighty

1012donna wrote: »

Once again, the guys and girls who have committed most of their adult life, having served 15, 20, 25 years are being side lined and can't benefit from this scheme. I feel that these are the people who should be gettting extra incentives and schemes not the people who have done 4 or 5 years and could leave at the drop of a hat.

The people who have served 15 plus years should now be on a salary which enables them to get on the market without assistance. They had 15 plus years to save up for a deposit so therefore should be in a better position.

Anyone who has completed 3 years can leave after completing the mandatory 12 months, not just the one who are eligible for this scheme. If they do enrol on the scheme then they are more likely to stay in the Forces than get out.

Am i just about to complete the purchase of my first house of which AFHOS will have contibuted 33% towards my mortgage.

1012donna

Cod_Almighty wrote: »

The people who have served 15 plus years should now be on a salary which enables them to get on the market without assistance. They had 15 plus years to save up for a deposit so therefore should be in a better position.

Anyone who has completed 3 years can leave after completing the mandatory 12 months, not just the one who are eligible for this scheme. If they do enrol on the scheme then they are more likely to stay in the Forces than get out.

Am i just about to complete the purchase of my first house of which AFHOS will have contibuted 33% towards my mortgage.

Not everyone who has been in for 15 years will have been able to save £30/40k for a mortgage. When we got married my OH was on £33/day - you can't save much from that realistically can you? We are now in a much better financial position but not everyone is and I still stand by my belief of rewarding the guys who have given years of service not the 'newbies'. I know of one guy who was in the army for about 8 years left to join civvie street, couldn't get a decent job so after 3 or 4 years out re-joined and got a huge bonus (about £3/4k if I remember correctly) as a thank you for re-joining.....again, makes me mad!!!!!