Newbie needs mortgage advice.

[Steve_Goral]

Hey guys and girls,

I've just finished at RTS Halton and I'm looking to buy my first house near my Phase two training station. My question is, are there any military specific mortgage providers? Or are the high street banks still the best place to check out first? It's my first foray into the world of huge debt so I'm a little confused by all the options available.

Also, there's this whole key worker thing too. Do I qualify for this? And is there anywhere that can help with saving up for a deposit?

Sorry about all the questions, I'm crap when it comes to financial things.

Cheers in advance,


Stevie.

 

[Teh Wal]

Hmmm, why the rush to buy a house in an area where you're only going to be for a relatively short time? You may well get posted to the other end of the country.

And how about waiting til you've completed your training just in case you don't actually make it all the way through for any particular reason?

My advice would be to make use of MQs, the rent is very cheap in relation to renting out in "the real world", and religiously save away the difference between your rent and what you would have been paying out on a mortgage - it'll soon mount up giving you a considerable deposit and then when the time comes to buy a house you will already be used to living on a tight budget.

Also PAX Insurance which is designed for Armed Forces folk is, according to an independant financial advisor at my resettlement brief, one of the best life insurances available for people who own their own homes due to various fringe benefits.

 

[propersplitbrainme]

I'd go along with what Teh Wal says about buying at a place you are only going to be at for a relatively short while. Also, are you a singly or married? I ask because as a singly you may be required to live in during your training.

 

[Steve_Goral]

I'm a singly, well by that I mean I'm not married yet. I'm just kinda putting out the feelers for a plan of action. I'm going to be a mover, and my daughter already lives around Oxford, so I was going to buy a place around there as there's always going to be a need to return to the area.

I suppose theres the age old trick of getting wedc to get a place. How easy are married quarters to aquire? Is it just fling out a form or are there waiting lists and things to sort out?

It must seem like I'm midering on, this long Christmas break has me over thinking things LOL.


Steve.

 

[busby1971]

Don't rush

Don't rush

Whilst it may be a good thing to join the housing maket at the moment it might not be as well, unfortunately only hindsight can help with the exact moment to join the Market. If you can afford it and want to do it now then go ahead, if you are going to be a Mover you could be spending a lot of time in the Oxford area, however, you might be a right biff at movering and might not complete the course, you might select another trade which might make the Oxford area a distant dream.

To get SFA you normally need to be either married or have custody of your kids if this isn't the case then you'll be in singly accom on camp, either way you'll be able to save money towards a deposit if you've got the will power not to spend your money like a typical singly.

Open market mortgages are probably the best you'll get, the rate will depend on your deposit and credit rating and you should be able to get 3 or even 4 times your salary, although it's wise to stay as close to or below the 3 times income levels, which for somebody who will be finishing phase 2 will be about 48 to 50 grand, add a minimum deposit of 10% and you are looking at getting a place worth no more than 55 grand, I would have thought that any house worth having in the Oxford area would be a little bit more pricey than this. If you have a partner then obviously their income would be taken into account.

You should be entitled to Key Worker status which should give you access to some of the shared ownership/equity schemes, just make sure you read the small print here, they can be tricky to sell on and if you do buy the rest of the house there are costs as well as house price inflation to take into account. Don't forget you have to pay to maintain the whole house not just your share.

Some builders will offer Forces packages but these can normally be bettered with sound bargaining but do offer a good starting point.

To be honest if you've not got a stash of cash or something amazing that most new entrants don't normally have then I like most other people on here will probably advise you to wait out and get settled before rushing in, however if you have and are aware of the possible consequences then fill you boots.

 

[Steve_Goral]

Cheers to all for the replies. Certainly some valid points to think about. To be honest I think it's best to wait.