CTC Wings email

[silverknapper]

I have just been forwarded this by a friend looking into beginning CPL/IR training:
After all of the problems caused by this current economic climate, we are
pleased to be able to impart some good news with regard to a possible funding
option for the CTC Wings programme. As of today, BBVA (a Spanish bank) are
happy to accept applications for the funding of the course once you have been
offered a place on our training programme. They are based at 108 Cannon Street,
London EC4N 6EU, and will assess each application individually on its own
merits. There are two Managers at BBVA that are fully aware of the CTC Wings
programme and their contact details are:

Now maybe they know something I don't, but in light of the current situation regarding the economy coupled with the amount of unempolyed experienced pilots and the large amount of folk in holding pools everywhere surely this has to come under the umbrella of irresponsible lending.
Any thoughts?

[deltaxray]

I just got the same thing. Dont know what to make of it:confused:

[mikehammer]

Irresponsible indeed. Unless the bank secures the loan against your home, in which case, as far as banking is concerned, it's very responsible indeed.:E

[b.a. Baracus]

BBVA were mentioned in a previous thread:

http://www.pprune.org/professional-pilot-training-includes-ground-studies/360395-any-banks-still-lending-fund-integrated-modular-courses.html


I stand corrected - Last I heard from friend at CTC that BBVA still hadn't agreed to fund.

The terms for the FTE loan are here: http://www.ftejerez.com/downloads/bbva_terms.pdf (http://www.ftejerez.com/downloads/bbva_terms.pdf)

OAA's loan from BBVA is fairly similar, slightly different rates and obviously in sterling.

[Big Frank]

Who are Oxford using for their loans at the moment? As they are now working with FTE and CTC, it looks as if BBVA has cornered the market in supplying loans to integrated pilots!
Some banks are obviously still doing well then...:hmm:

[EvelcyclopS]

so its a secured loan?

[Bealzebub]

Guarantee required: Mortgage over a property in the UK.

so its a secured loan?

Oh Yes! As secured as it gets. The bank will use the guarantee to satisfy the loan if the applicant (the person who owns the house) defaults on the loan agreement. The bank will also want to satisfy itself that the same applicant can meet the repayment schedule from their income.

[EvelcyclopS]

So, will any mortgage do? or will there have to be a decent amoun tof the property already payed off?

I'm looking to buy a house very soon, and it'd be good to hear if i could raise the funds simply off the mortgage but it sounds a bit easy

[Bealzebub]

I am not sure I understand what you mean? a mortgage is a legal registered charge, that enables the lender to repossess the building and enforce the sale of the property to recover the debt.

If you are in a position to borrow the sums you want within the overall lenders criteria, then yes you can use any mortgage that is made available to you. Obviously the security (the property) would have to have sufficient value to cover the lenders liability. Normally the lender will require that the loan doesn't exceed a percentage of the assessed value of the property. These days that might be anywhere from 60% to 90%, and the interest rate charged on the loan will often be in direct proportion to the relative size of the loan. In addition the lender will usually set criteria based on the borrowers income as to what limit of loan they will advance.

If the potential borrower is seeking a second mortgage (and second charge on the property,) then not only would the new lender have to satisfy themselves that there was adequate security (equity) still available in the property, to protect themselves, but they would also need the permission of the principal lender (who is first in the queue) to register themselves on this security. In addition the same basic rules regarding income and lending multiples would also probably apply.

So to that end, the answer is no. You cannot use a mortgage where you are the borrower, as a security, since it isn't your security, it is the lenders.

[Hot 'n' High]

EvelcyclopS,

“I'm looking to buy a house very soon, and it'd be good to hear if i could raise the funds simply off the mortgage but it sounds a bit easy”

You could only borrow a training loan on the residual value of the property after all other outstanding Charges against that property have been taken into account. Eg;

Current Property value - £270,000
Outstanding Mortgage - £240,000
Another secured Loan (car?) - £8,000

Residual value - £22,000

Therefore, in theory, you could borrow £22,000 for your training against that house. However, the Bank providing the loan would take into account various factors, including what it believes the market value of the property would do, so they may well not lend the full £22,000. Bit simplistic - but you get the idea.

I’m sure that’s what you meant – but I just thought I’d check!

H 'n' H

PS Just seen Bealzebubs Post which has said the same as me!

[hollingworthp]

My understanding for the BBVA / OAA loan (which is probably similar with the other FTO's) is that:

Any existing mortgage + any training loan (+ fees etc) cannot add up to anything more than 60% of the current market value of the property.

This kind of implies someone with loads of money already or who has been paying their mortgage off for years (i.e. parents).

All the usual risks apply - so if you fail to secure a job and need to keep current while waiting for an eventual upturn then you need to keep up with those payments otherwise somebody loses their house ...

[Hot 'n' High]

I think the max %age value depends on the views of main lender (the Bank who lent the initial Mortgage) as well. Of course, not long ago, 100% Mortgages were available! Not any more me thinks. After all, what was it that precipitated the current financial melt-down? :ugh:

[sensible2k4]

How is this irresponsible? They aren't just going to hand you a £70k loan if u pass selection!
They would only lend you the money if they were 100% sure you can repay it or secure it. This is where I became stuck before. Struggling to raise funds and I don't own anything of value to secure such a loan!

[I like planes & stuf]

It is irresponsible to some degree based on the employment prospects of low-hours pilots right now. Because if these unfortunates are unable to service their 'responsible' loans then BBVA will sweep in and force a sale of mummy & daddies house (or whoevers) to cut their losses.

Some of these people need to be saved from themselves.