Bank Loans for training

[iceman13]

Has anyone any experience in getting a bank loan in the UK secured by UK property, to finance FAA CPL??????

[An2]

Try saving up the money instead. At least part of it.
Otherwise, chances are you're digging yourself a hole that you'll never get out of!:{

Be careful. :uhoh:


Good luck :ok:

An2

[airshowpilot]

Why not tell the bank that you need a loan for a car? They don't care what you spend it on (especially if you borrow against the house) as long as you're able to make the repayments.

[Harves]

Do you really need to secure, I only ask because HSBC provide a £15,000 unsecured business development loan with defered interest until qualification and you could get a career development loan from Clydesdale for £8,000 again unsecured and nothing to pay until completion and no acrued interest to boot. Just thinking, depending where you are in training, £23,000 can go a long way without risking your house.

All subject to status of course!!!

Good luck anyway!!

[dreamingA380]

This sounds funny...
But I noticed in tesco's that they do an unsecured loan...They give a discount if you organise it online and looked pretty reasonable and flexible to me.
I wouldnt put the house at risk...... how about re-mortgage?

good luck

[waspie]

Dont forget that some training schools will get the loan for you if you train with them. Just another option, I dont know whether its appealing or not. I think in general they are about 5.5% APR. But go on the CTCMcAlpine website or check other training schools and then find out.

[who?me?]

I went to HSBC for a £20k loan last August. Went through the trouble of setting up a meeting with the loans guy, getting all the documents and info they requested, setting up an account with them. Interviewed for an hour.

Told them what I wanted the money for (my TR) - a few weeks later got the phone call: they wouldn't give me the money.

Reason? They thought the career I was pursuing was too unstable and my chances of getting a job (hence return on their loan) was slim.

3 months after getting my TR and still no job - they might have been right! Still won't stop me trying though, and the TR was one hell of an eye-opener.

Might be hard-up now but I'm glad I did it.

Who?me? (dumb and broke:bored: )

[iceman13]

I really appreciate all suggestions. I see that HSBC could be a positive or negative but worth a try.

It was the fact that I need financing for an FAA licence rather than JAA was why I posted this thread incase anyone else had been successful.

Thanks again
:ok:

[In Flight Shut Down]

iceman

I have been succesful with HSBC for a £40k un-secured professional studies loan and i have never banked with them. It is available to doctors, vets, lawyers and aspiring commercial pilots if you have a degree. The loan rate is 2% over bank of England base.

It was so easy that they were offering £50k, but i declined.

IFSD

[Bealzebub]

Asked my friend and local HSBC branch manager about this yesterday. It seems most of the big banks ( and probably smaller ones as well) are keen to capture a large share of the graduate account market. One way of doing this is to offer attractive terms for loans for career development courses and post graduate courses. I asked about people claiming to have been "given" large amounts of unsecured loans for such purposes. The reply was that the banks are still in business to make a profit. Unsecured lending above £25,000 in the UK to one individual customer is very rare. Some individuals circumstances may make such a loan an acceptable risk for the lender, for example they may have high nett worth or security acceptable to the lender. However it is not generally in the lenders interest to make advances that the customer will have difficulty in repaying.
Every application for any loan is assessed according to the banks criteria and if a customers profile fails to satisfy the banks lending risk criteria it would nearly always be turned down. "Nearly" because there are situations when a parent or guarantor can sometimes secure borrowing that would not normally be available to the individual. Secured lending usually represents less of a risk to the lender and may be available for larger loan amounts or where the unsecured risk is deemed too great.

For most people debt is very much a fact of life and money as a tool is nearly always necessary to advance. Like most things it needs careful management. The ability to be able to repay borrowings is vital to both parties involved. The truth of the matter is you are not borrowing money in the long term you are actually buying it. The seller will expect to be repaid. The fact that something is "available" does not mean it will always be "granted".

Iceman, a bank loan secured to UK property ought to be easier and possibly cheaper than an unsecured loan. Obviously an unsecured loan has less risk ( for you) attached to it, and the amounts available will usually be restricted. The overriding consideration though is the ability to repay the loan. As has already been mentioned the lender won't normally mind what you use the loan for ( unless the contract is specific to a purchase).

good luck !

[CapedVulture]

Hi all

I`ve recently been to 2 HSBC branches to try and get an unsecured loan for £12 000 for a FI rating. Need the extra for living expenses etc.
I am currently not working but have many years of solid Computer network and support experience to fall back on to pay off the loan. I don`t own any property to put up for security though and my relatives will not help me in thi department.

I went in well prepared with a spreadsheet of expenses etc. and at both interviews was told there shouldn`t be a problem getting the money.
I also managed to save £40 000 in 2 years in my previous computer job and financed all my FATPL flying myself, which I explained to them.

1 week later I was told that they needed security as they couldn`t be sure I could make the repayments, even with my work experience?

What am I doing wrong or different to some guys who have got an unsecured loan for £15000?
I take it unsecured means a guarantor with a property etc. is not required?

I mean, apart from a secured loan, how can anyone guarantee repayments?

[jasonjdr]

Iceman,

For my sins I confess to being an IFA / Mortgage Broker. After obtaining my FATPL and realising that the road to a job is both long and hard, I decided to set up my own IFA company to give the flexibility and income to keep current. Still no RHS but the company biz is going great guns!!

But back to the subject. Without knowing all your individual circumstances I can only give a general idea of what I would recommend. Firstly, make sure that you have all your finances (including any potential contingency funding) arranged before you give up your existing career. You will be able to obtain finance without (or with a very low income) but the rates will be very high (I have already seen 2% above base mentioned - which is VERY high). Without promoting any particular lenders, you'll have to PM me (although I bet HSBC get a load of business from PPRUNE!!) I would suggest approaching a secured lender (the rate should be about 0.25% above base) who offer what is called 'offset' or 'flexible' mortgage loans. These allow you to obtain a pre-approved facility to borrow extra funds any time in the future. This way you can draw down (and therefore only pay interest) on the funds only when you need them without any need to apply again (they usually give you a cheque book). If you wish you can set-up the finances for interest only payments to reduce your outgoings in the short term (and then return to capital repayments when the income starts coming in again), or you can have the facility to take payment holidays (but sometimes these are limited upto 6 months only).

For those of you who do not have any property. Then there are other lenders then HSBC, with better rates. But you will need to consider the reason for the loan when applying. Most lenders will go upto £25,000 without caring what the money is going to be for. But in reality if you tell them that you want the money to give up your current job and have no income for 18 months, then would you lend the money!!! The need to buy a car can come and go, one day I wanted one, the next day I didn't. And don't add in the payment protection! Buy it seperately, it is so much cheaper and you pay monthly on a monthly basis. All the guy in the bank does is receive some commission and add another lump some for the insurance premium to cover you for the proposed term onto your loan so that you pay interest on it aswell!!

Anyway, I have gone on too much and there is far too much info here (which is most probably making it confusing as hell!). If anyone has any specific questions, let me know I will try to help as much as possible.

All the best with whatever decisions you make. :)

[In Flight Shut Down]

jasonjdr

can you recommend any lenders that offer the 0.25% over base rate? I am with HSBC, however, i can settle my debt at any time with no penalties.

website addresses would be great.

ta

IFSD :ok:

[jasonjdr]

IFSD,

Check your PM. ;)

[1pudding1]

Jason, Could I have the same info as you sent IFSD.

Thanks.

[moo]

could I have it too please jason!!!