Originally Posted by
Huggies_23
Personally, being 28 and my parents being close to retirement the last thing I wish to do is ask them for assistance in this (by way of securing any borrowing against their property / otherwise).
Obviously the cadet still takes on the debt and is responsible for the repayments (unless declared bankrupt etc.).
Absolutely BBVA are unique in their repayment schedule, the perks of a product created specifically for flight training.
I think anyone going into this process, nevermind accepting a training position, is entirely aware of the financial burden that will undoubtedly make the first few years post-qual hard work. At least I hope this is the case....
I do wonder with other lenders whether or not you could boost the amount borrowed to cover the initial payments. Though this would probably amount to 20k odd and would be hard to justify to the lender.
No lender will lend more to allow you make payments on the same debt. I doubt any airline would underwrite a loan far greater than the course cost.
I’m sure everyone is aware of the financial burden, but I’m sure even you would agree that there are some who haven’t quite got a proper grasp of the scale of this financial burden. There’s a degree of naivety almost, and I can’t help but wonder if there is a belief amongst some that if the airline underwrites your loan you’re not physically paying. I get the impression some are thinking of this as corporate sponsorship.
We are talking about a sum of money which would be enough to buy a small home and the process for getting a mortgage these days is incredibly intrusive on your financial affairs.
I have approached my own bank as they are offering a large unsecured loan product. After enquiring I found they want to see evidence of earnings and how I would pay for the product several years down the line. They also want to know what the loan is for as that will factor into their decision.
Secured lending on a home with equity is likely to be the only real solution. But with shared-equity and Help to Buy etc, I’m not sure it will be possible to secure additional lending on that property.