How / when exactly is the security bond repayed to you? The information from CTC is about as clear as mud when it comes to YOUR money.
Probably never! Other people will be able to give you a better explanation, but this money represents your training costs. As such it becomes their money and not yours. However it is very dependant upon what happens to you at the end of the course, as to what happens to this "bond."
In better times, certain partner airlines would take a number of cadets on a six months probationary period. During this time those cadets were not paid a salary by the airline, but received a small sum of money from their bond (around £1000 or so, a month) in addition to expenses (flight pay, allowances etc.) from the customer airline. At the end of the probationary period, those cadets who were kept on by the airline were paid a salary, (usually a cadet level salary for a two or three year qualifying period.) Their training bond was also part of the package in that it was (in effect) purchased by the customer airline. It then provided a level of security for the airline. These "bond" sums were then repaid to the cadet in monthly amounts over a fixed period.
In recent years, there have been very few airline customers prepared to adopt these arrangements. Indeed there have been very few customers at all. In order to keep things moving, new customer arrangements have been agreed with various airlines. These arrangements with names such as "flexicrew" have often been on significantly less favourable terms to the cadet. However, they have provided a significant source of employment and experience in a marketplace that has become very arid.
With these schemes, the "bond" is not transferred or purchased by the customer airline. In fact there will usually be additional training expenses for the costs, or contributions towards type rating training. In this case, the "bond" is transferred to the training provider in respect of the candidates training costs. Similarly if the individual finds their own employment, or if after a time period there is no employment the "bond" is transferred to the training provider.
In other words, this isn't "your money" it is "their money." The bond is surity that the (non-foundation course) training costs will be paid.
If a customer pays the training provider for your placement at completion of the course (or within an agreed period) the bond is transferred to that customer, who
may repay it to you at a rate to be decided by that customer.
To be clear, the bond may turn out to be a good way of ultimately reducing the training cost burden. It also comes with a limited range of protections in the event that the cadet fails to complete the course (for a number of defined reasons.) However it would be a mistake to regard the "bond" as your money. It is money deposited to cover your training costs. Only in very defined (and currently remote) circumstances, will you be reimbursed any or all of these monies, and only if the bond is adopted by a customer airline utilizing this scheme.
The BBVA loan, is a secured loan that is secured on an acceptable UK property. Guarantors (usually parents,) would be required unless the applicant could satisy the requirements themselves. The loan is unlikley to be offered unless there is sufficient equity in the securing property, such that after the proposed loan and any existing mortgages are taken into account, there is still around a 30% margin betwen the total charge (debt) and the value of the property.
On top of this the guarantors financial position would be taken into account, to reasonably ensure that they could meet the payment obligations themselves, if the main applicant defaulted. In other words, it doesn't matter what your position is at the end of the course. It doesn't matter whether you declare yourself bankrupt or not. Any default in the loan repayment terms, will require the guarantors to satisfy those terms. Failure to comply resulting in the secured charge (the property) being exercised (sold) to repay the debt (capital, interest and any other legal charges.)
These loans are variable and tied to the UK base rate at a fixed difference (usually plus 2.5%.) With a base rate of 0.5% that makes the repayment levels (for illustration purposes) look relatively attractive. It would be a wealthy person who could predict with any certainty where rates will be in 18 months time or indeed in three or four years time. However base rates of 4% or 5% are most definetaly within the realms of probabilty within the shorter timescale. This would give a repayment rate of 6.5% to 7.5% possibly before a single penny of any loan is repaid. Any applicant needs to satisfy themselves (and the bank almost certainly will,) of the affordability criteria in those and possibly worse circumstances.
Other people will be able to give you a better account of their experience, but I have read (carefully) the paperwork, with my spectacles "rose tint" removed. These schemes may work well for individuals and I am certainly not criticising them. However the terms of the contracts should be read very carefully, and
completely understood by anybody entering into them.