View Full Version : Funding
MightyDucks
27th Feb 2011, 20:36
Hi all,
Has anybody recently been granted a loan for pilot training. I've heard that BBVA bank in Spain offer it to Irish people but has anybody dealt with them. I will have a good garniture and have some savings.
Any help I’d appreciate it.
BoeingDreamer
27th Feb 2011, 20:58
Good security = Loan - not a loan because you want to be a pilot, nada!
Good security = Loan - not a loan because you want to be a pilot, nada!
Err... Have you just thrown in random punctuation and mathematical operations? This makes no sense to me, what are you trying to say?
pipersam
28th Feb 2011, 20:05
I'm currently dealing with them to secure a loan. They are incredibly helpful.
As far as I'm aware you need to have a property in the UK or Spain with sufficient equity to secure the loan against. This can be parents or immediate family.
dreamlinerguy
28th Feb 2011, 21:32
I've just secured a loan for my CPL/MEIR/MCC from an Irish bank, And i'm not even employed.......!!
Obviously depends on how you go about it and the amount you require
MightyDucks
2nd Mar 2011, 13:09
What bank?
MightyDucks
2nd Mar 2011, 17:00
"Wouldn't happen to be a guy in a dodgy suit, charges 70% interest and failure to pay back means a baseball bat to the head in the middle of the night? I'm sure there's more to it though; secured on assets?"
Interesting......is that fixed or variable
Dublin Eire,
Wouldn't happen to be a guy in a dodgy suit, charges 70% interest and failure to pay back means a baseball bat to the head in the middle of the night? I'm sure there's more to it though; secured on assets?
I didn't realize Michael O'Leary was offering flight training loans!
I don't know of a single Irish bank willing to offer deferred repayments on a secured loan. I also don't know of any that would grant a secured loan in a student's name if the security is the property of a different person.
I will be very surprised if Dreamliner Guy is getting anything other than a mortgage (first, second or extended) in the name of the property owner. I will be even more surprised if he is getting a repayment holiday.
Just about anyone who owns a property that has significant equity built up can get a secured home equity loan in their own name from a local bank, but repayment holidays are extremely unusual and usually incur high interest.
MightyDucks
5th Mar 2011, 10:49
Good old Ireland:mad:
Back to looking for the end of that rainbow.
dreamlinerguy
5th Mar 2011, 20:03
dublin_eire:
NO, its not with a chap in a dodgy suit and NO, its definately not 70% interest...
Adios:
Your gonna be really suprised when i reveal you could not be more wrong, I'm currently unemployed, have no assets, not living at home, and am getting a 3 month repayment holiday from when i complete my training....
I suggest people start trying for themselves and stop talk through their brown hole.....
Im no one special, i just have more sense than most in how things work, banks in general never stopped giving loans to people who don't take risks..... FFS it's not as if i asked for €2,000,000 is it....
If you present yourself in the right manner with the bank manager, and have somethin to show how you can save when you were employed it should be no problem. I have easily put €300,000 through my bank in the last 6 years and i'd have been furious if they had declined it.
Keep your heads up guys, good things come to those who wait. Out
BigGrecian
6th Mar 2011, 01:13
€300,000 through my bank in the last 6 years
That's not a lot of money to a bank - that's 50k a year - your not really a valuable customer to the bank - and your deluded if you think otherwise.
Actually - you are now they can chase you for your debt in 3 years and hike up your interest rate. :cool:
Good luck with the flying.
Whirlygig
6th Mar 2011, 07:27
Dreamlinerguy, You are not telling us the whole story - why don't you actually tell us with which bank you got this loan because your information flies in the face of every European banks' policies I know. And I bet I know more about banking than you.
Cheers
Whirls
dreamlinerguy
6th Mar 2011, 13:12
I've said enough to show that all hope is not lost and it still is possible to secure loans when you think its not possible, im not willing to pass all my information to the whole www.....
I'm an optimist, and have no time for people who speculate, or waste time guessing!
How much are they loaning you Dreamliner Guy? Is it secured or unsecured? You've already said you have no assets, so I'd guess you got a small unsecured loan or someone else's asset is on the line.
Ikarusleftwing
9th Mar 2011, 12:37
Is there someone/somewhere whom can advise on financial issues to do with commercial pilot training?
A financial adviser to help with loans advice etc?
PMs welcome.
ta
IrishJason
24th Mar 2011, 23:00
Well I'd doubt any of the main banks will put that cash up with the requirements you've listed. It's either a credit union with a good few euro in share's or you robbed the bank :eek:
student88
24th Mar 2011, 23:23
HSBC just given me £14K. The APR is :mad: but the only way I can get my CPL/ME/IR done.
Piltdown Man
24th Mar 2011, 23:49
You have to be stark raving bonkers! How will you pay it back? If the bank hadn't lend you the money, would you have gone to a loan shark? Please don't complain when having finished you are not employed immediately.
Bealzebub
25th Mar 2011, 01:31
In fairness, if student88 only needs £14,000 to complete whatever he needs to complete, then I don't think that is unreasonable.
The APR is likely to be around 7.5% (HSBC) for fixed rate money, which over 60 months would be just shy of £300 per month. This is what I would call reasonable "Ford Focus" borrowing, and even in if it is necessary to carry the loan doing another job, that is well within the bounds of realism. A point that probably wasn't lost on the lender either.
Compare this to the fact that many people here are looking at loans where £14,000 wouldn't cover the annual repayment schedule over a ten year term. Not only that, but even those eye watering figures only hold true with repayment rates of 3% variable. A figure that will soon be a rapidly receeding memory.
Whatever funding anybody is contemplating, they need to be able to answer this one question. If interest rates double and I positively fail to find employement based on the necessity for this loan, can I or my guarantor realistically service the repayment schedule, or effectively write the loan off?
If the answer is no, then don't even consider it. In truth, these days the lender is also likely to be asking the same question, so the decision may be a default one in any case.
student88
25th Mar 2011, 10:18
With all due respect PM who are you to tell me that I'm mad for borrowing the money? Up to now, PPL, ATPLs and hour building done I have no debt what so ever. My disposable income is around £1500 per month. I'm more than capable of paying off the loan. I have been employed by my airline for 5 years now and I am more aware than most people about the current job market. Thanks.
IrishJason
25th Mar 2011, 11:40
14k is noting:). I thougth you ment the full amount ie around the 80k.
Poose
25th Mar 2011, 14:52
I have to confess that the numbers don't add up on people in this industry...
How exactly do people break into it nowadays?
My Story:
I was sponsored by the RAF (Flying Scholarship) and worked part-time in my youth to gain PPL. Let it slide for about five years; discovered Modular route then realised I could do this if I had what is not an 'unreasonable' amount of money and time. Went and got a half decent job using my degree to give me the 'borrowing power'.
I took a Career Development Loan for £4600 to pay for ATPL groundschool and a Night Qualification. My hour building has been done by flying two hours a month for the past four and a half years while working and studying.
I have a relatively respectable day job in Aerospace Engineering which pays a mediocre salary - £28000. I have lived with my relatives for the past few years to keep outgoings to a minimum and to help reduce university debt. I always knew that I was going to have to take a sizeable UNSECURED loan to polish off CPL/IR and needed an excellent credit score.
I recently was given £20000 from my bank with repayments of approximatley £475 a month. I am effectively now borrowed out.
I am aiming to finish CPL/IR at the end of this year.
How on earth do people break into this market?!
I have a reasonable day job which has got me this far. My experience has revealed that not many people are fortunate enough to have my qualifications to fall back on. Now...
1. How are people paying for their training?
I have a decent day job - most CPL/IR holders I know don't. Mystery...
2. How are people then paying for Type Ratings?
Again, I have borrowing power from my day job - most CPL/IR holders I know don't. Mystery...
3. How are people living off the miniscule salaries that certain operators offer up?
I have training/university debts which have got me this far and I'm having to live with family... Other people are accepting jobs on peanuts, yet surviving. Mystery...
I have worked very hard to get this far - I am struggling to see how I can progress post CPL/IR.
Are all new First Officer's nowadays nineteen year old Oxford/CTC graduates with folks who will pay £100000 for a job?
Surely there isn't an inexhaustible supply of such people nowadays?
Is that really the only way in?
At the minute I am a tad disillusioned as I am in a position where I could not afford to go to my first job unless it was offering a decent salary. The 'entry level' jobs that are realistic options would not pay enough for me to be able move to them.
What do people do? I feel that I am missing a trick here...
hollingworthp
26th Mar 2011, 07:36
They secure the loans on a suitable asset (typically a house) and given the age of the majority of students (particularly integrated) - then this is likely to be the family home.
Poose
28th Mar 2011, 10:22
Looking at it that way, I then see two options:
These guys are having their courses paid for them outright by their folks. Very fortunate.
Or they have taken the £100000 debt in their own name and are struggling with £1000 a month repayments...
Surely, in this day and age there isn't an inexhaustible amount of people who would follow this path?
I find it hard to envisage this pool of people doing anything but shrinking. Especially, when one considers the reduction in property prices and the general financial 'belt tightening' of the Western world... :confused:
If anyone knows otherwise please let me know, because I'm struggling to see how virtually all recruitment can be cadet based indefinitely.