Raising capital for an A/C purchase

[Mariner9]

Any financial wizz kids out there know the best way of raising capital for an aircraft (kit) purchase.

Had planned to ask bank for a further advance on my mortgage, but not sure how they'd react to the request if I told them it was for an aircraft purchase. Suppose I could lie and say it's for home improvements, but I'd rather stay truthful if possible.

Any thoughts?

PS Checked with Lombard Finance (who advertise aircraft loans in Flyer), but they dont offer loans for kit aircraft)

Ta

M9

[englishal]

If you have the capital in your house, you can borrow the money for whatever you want. When I phoned Alliance and Leicester, within 10 minutes they had agreed to £30,000, and to switch my mortgage to a "7% cash back" one raising another £7000 :D Within 2 days, there was a nice deposit to my current account.....They really didn't care what the money was for (even though it was spent on home improvements :{ )...

EA

[Genghis the Engineer]

I've done it with my bank, Abbey (Abbey National as was) a few years ago, took out a personal loan saying it was to buy an aeroplane. The girl on the phone was quite amused, I don't think she'd heard that one before, but no problems at-all, money came through inside a week once I'd signed the paperwork.

So long as you are borrowing in the bracket £5k-£25k and are a homeowner, most of the banks are giving pretty much the same rates at the moment (a bit under 7%).

What are you planning to build?

G

[Mariner9]

Well I'm seeing the bank Manager cap-in-hand tomorrow, and I try being honest at first, then switch to a more economical-with-the-truth approach if that doesn't succeed. Will advise fellow prooners of progress.

I'm hoping to build an Alpi Pioneer 300 - flew their demonstrator earlier this week and it was absolutely fantastic!!!!

M9

[J.A.F.O.]

Don't go cap in hand, you're offering to make him money, he isn't doing this out of the goodness of his heart, he's offering to give you £20,000 in exchange for £35,000 and if it turns out that you haven't got the £35,000 he can have your house.

The Alpi looks quite nice, you could ask the bank manager for twice as much and build me one, if you like. I'd ask my own bank manager but I've just done it (twice) to buy all sorts of stuff that I never mentioned to him.

[Mariner9]

Good point Jafo. Problem is I've recently moved, and although got loads of spare equity in M9 Towers, proposed increase in lending would take me even further over banks normal salary-multiple limit. So a certain amount of grovelling is probably required.

Sorry no room in the garage to build 2 Pioneers, but feel free to contribute to this one in exchange for a suitable share :ok:

[englishal]

So a certain amount of grovelling is probably required.
No problem :D Play the "bonus" card.

Bank: "and how much do you earn"
Me: "I earn X amount"
Bank:" Hmm, you don't earn enough to borrow more money. Do you receive any bonuses or anything?"
Me: "Oh yes, I'm sure I receive at least £10,000 a year in Bonuses"
Bank: "Oh thats fine then, your further load is approved"

:D

[Mariner9]

Well. EA's "bonus card" plan worked, the very nice young lady in the bank handed over a big wad of cash, and even asked to be taken up for a flight once the A/C's built :D :D

Final look around at the PFA rally, made my decision, and ordered an Alpi Pioneer 300. Haven't stopped grinning since :D :D :D

M9

[tacpot]

Well done for posting your progress on your financing.

Hope the build goes well.