CTC Wings & the Loan

[timotei]

Me and a friend are both awaiting phase two and just found out about the loans being stopped last September. We were both shocked and just wondering if anyone can offer any tips/advise on other methods of coming up with the £60,000+ bond/loan??

Tim

[Chilli Corneto]

Hi Tim,

Unfortunately HSBC as you're probably aware used to do the CTC wings cadet loan. However this has now stopped much to my expectant disappointment when I saw them not so long ago.

This means that the only way to pay the security bond now is by funding it yourself. This can be either through having that sort of money laying around in your bank collecting dust or through obtaining a secured loan against a property. Usually Mum or dads house. Although this can still be quite straight forward re-payments are due instantly so some one will need to start paying them back. It can't be you as you'll be training for 18 months on nil salary approximately.

Alternatively sell your mum / nan / dad / sister for what ever you can get for them.

Sadly this credit crunch has had really hit those that are pursing the CTC route. However CTC are apparently talking to other banks to set up other schemes. Sadly this could take quite a while and it could be any major high street bank.

I can't offer much advice as I don't think anyone really knows what the best thing to do right now is.

Good luck with the selection though.

Chilli.

[timotei]

Hey,
That's what I was afraid to hear

Are you going through CTC too? If you are, can i ask how your thinking of getting past this?

I think I am going to have to have a long chat with my parents

[gbvsf]

I was planning on applying to CTC later this year but after hearing that I think I'm gonna have to do a lot more saving first. CTC are having an open day on 7th Feb so I'll grill them on what to do about the loan.

[dahawg123]

Ways to raise 60k?

Try drug dealing, prostitution and people trafficking - worked for me.

[n.dave]

dahawg123

Really!!! I will be your FIRST customer.

[timotei]

I can tell I'm going to have to rethink a lot and start saving every penny I can
Its time to start cashing up my penny jars
Thanks for all the replies

[skiptoit]

Sorry chaps, it's a simple solution to a simple problem at the moment; if you can't afford it, don't do it. Maybe think about modular instead? You can work and train and it ends up being a lot cheaper!

[Flying Squid]

My mrs met the CTC Wings lending manager for HSBC at a charity do just before crimbo....he said that there will be no more student pilot loans for around 5 years due to their current massive exposure and relatively small amounts of money being repaid. Until they balance their books they are not going to backing any more CTC students of any other trainee pilots for that matter. According to this guy, whilst the credit crunch has influenced their decision it isnt the driving force behind their decision. They have a set amount that they are willing to be exposed to and that limit has been hit. Simple as that.

[R T Jones]

If from CP1 to CP63 you have an average of 8 people per cp. 504 cadets. 90 % take the full 65k loan from HSBC.

453 x 65000 = 29,445,000 . £30 million and I don't believe anyone has been out of training more than 7 years yet to pay that all back. Scary amounts of money!

Not sure how accurate those figures are, but there not just total guesses!

[lde1988]

I met the CTC team just before Christmas, "i would take it with a pinch of salt", but they claim to be in advanced negotiations with another lender and are planning to introduce a new funding scheme within the near future. Obviously, due to the current economic conditions the terms and conditions of this scheme will be tighter than those that where offered by HSBC.

If you have your heart set on going through the wings programme i would advise that you sit tight for the near future and see if CTC can, as they claim introduce another finance package. That's my plan anyway!!!!

[no sponsor]

You all could, of course, get jobs and save the money.

[b.a. Baracus]

CTC Financing

I would be very surprised if CTC manage to setup a new financing arrangement anytime soon. The banks just do not want to know, it doesn't matter who you are. End of story.

[pug]

I could understand banks not wanting to know. They will be aware of the flooded pilot job market at the moment, i heard of them getting put off by the amount of people declaring bankrupcy during the better times, it would certainly be a dangerous game now. Afterall, isnt the lending to too many people who cant pay back, a large (or even main) contribution to the crap the economy is in at the moment?

I cant see it being reintroduced until there is a 'true' shortage of pilots in some years. I am looking to start training in three years, if i decide its worthwhile, so am saving now and will go modular. Perhaps more likely to get a career development or business loan than the full whack for one of the big FTO's?

What does this hold for the future of integrated courses? Back to full airline sponsorship when they dry up the unemployed pilot market?

[no sponsor]

There's never been a shortage of low-experienced pilots.

I think this year will see the profession black-listed as a big no-no for institutions to lend to.

You'll all have to do it the hard way. Earn money in whatever (legal) manner you can to save.

[b.a. Baracus]

CTC Financing

Afterall, isnt the lending to too many people who cant pay back, a large (or even main) contribution to the crap the economy is in at the moment?

It certainly is, the US sub-prime nightmare is largely to blame. We won't enter into a big economics discussion here...but the whole situation was unsustainable. Inevitably the goal posts have moved and now people can no longer rely on obtaining loans.

So it appears it would be prudent to save, save, save for your training and try your best to minimise any risk to yourself.