Using your own bank
Hi,
Just thought I'd put down a few thoughts on my own experience in this tricky area in case it helps anyone.
I left a full time job just as HSBC withdrew the professional studies loan for pilots which wasn't the best timing.
I've needed to borrow £38000 since leaving work to fund my training from being a PPL with 140 hours to getting to the end of the MCC. I've borrowed 17000 from my parents which I have been very lucky to be able to do. But the other 21000 has come from my bank (Lloyds - 19000) and credit cards.
I guess the lessons I've learnt are -
It's worth contacting your own bank. I've been with Lloyds for a few years, but I'm new down in Christchurch so didn't know the local branch. However I got in contact with a manager there 8 months before needing the money and gave them a breakdown of what the money was for and a summary of my training schedule (it fitted on a side of A4 so wasn't too onerous). After keeping in touch with them since then and keeping them updated with my situation etc. they have now loaned me the 19000 I needed. It hasn't always been smooth, but I have been pleasantly surprised at their helpfulness. Also, although I have a flat (and mortgage!) they didn't require me to secure the loan.
Don't settle for an offered interest rate if it sounds over the top. Point out the other loan rates that are out there. Lloyds wanted to put me on 7.9% which worried me enough that I said I was reconsidering. They then price matched it with someone else's rate (Halifax I think) and I ended up with 5.9%.
I understand what Scroggs is saying about Credit Cards, but they can be useful. I've got £1000 cheap credit on a Sainsbury's card which is 0% for a year on purchases, which can't be bad in my book ! You do need to bear in mind the minimum payments you need to make each month.
I can't overemphasise enough the need to take into account living costs. Even with a part time job I've been going through c. £800 a month whilst I've been doing my ground studies and flying training. It makes up a big proportion of your costs if you have to spend 1 to 2 years out of full time work whilst you're training.
Good luck to all who are trying to get that elusive loan into their account !
Mungo