Yes the RAF will still be paying me, so in that sense I won't be out of pocket. But how does cost of living work out overseas? Or is it just a given these days that you accept a reduced standard of living because of the difference in cost of living? A valid question I feel. A reduced standard of living due to higher costs and currency fluctuations working against ever reducing allowances could well leave individuals taking a hit financially to maintain standards. I guess it just depends on where you go and the specifics of the location but it's not much of a reward for a job well done, if that's what overseas job are and not something that families and loved ones have to put up with.
Also, whilst you are still getting paid, does the RAF pick up the bills associated with going overseas? And I don't mean moving and shipping, for which they do. I mean things like the costs of swapping mortgages from fixed term to buy to let because your bank won't let you rent your home out under the current terms? Does the RAF pick up the costs of unravelling car finance agreements that have time left to run on them and incur charges for early redemption? Those sorts of issues are a factor as much as cost of living and must be taken into consideration as much as LOA. Anybody that doesn't look across the board at all the financial implications may well find themselves out of pocket through unexpected costs. If they went into an overseas venture in the knowledge that should such costs arise they were either happy to or able to absorb them, then that's one thing. If they are suddenly surprised because they haven't considered all the angles, it could be an unwelcome but entirely avoidable surprise.
It depends whether you are taking a 'normal' overseas assignment (eg NATO or Cyprus), or something a bit different, such as Loan Service or as an Attache. In the latter cases different packages are offered; indeed the attache package uses different methods to calculate the COLA (rather than LOA) and child-care, and other factors (cost of a land line, maintenance of a posh wardrobe, Club membership etc) are included. certainly if it is Def Dip/LS appointment, you do not pay for housing or utilities (including furniture and white-goods). My last tour, the cost of a nice hiring, garage, furniture, CILOCT, utilities, was just under £1000 pcm; that's an obvious and immediate saving on taking up these posts.
In terms of mortgage change charges, it could be argued that this is within the Disturbance Allowance/Grant/whatever it has been renamed. However, I think that you could make a case to PACC to highlight the costs incurred, but I would imagine that they will respond by saying that the Service is not obliging you to rent your property. I encountered same problems several times in the past and speaking with the Lender eventually resolved the matter (yes, I had to get a bit shouty). Car finance charges - hmmm, I feel that there could be a stronger case to support this, especially if you are posted somewhere where it is not practical to take your car or (as is probably the case) the finance company may not allow you to do so. However, such costs may be expected to be covered by LOA - for example, German LOA does include an element, IIRC, for headlight conversion and winter tyres. (ps: if you are going to Germany, use Halford stick-on converters. I used them happily for three years and passed the rigorous TUV tests (MOT) with them)
The biggy, though, is loss of spousal earnings. LOA is not designed to replace these, although most of us have taken this in to consideration, but didn't expect such swinging cuts over the last 4 years. If you have kids in Boarding school and want to see them more than 3 x a year, additional flights become v pricey at half-term, etc. Also too, you will spend more on travel and tourism than a UK tour; expect to meet all manner of friends and rellies at the local airport if you are in a picturesque or popular location!
feel free to PM me - I can prolly give you more targeted info.