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BBVA Stop Funding Pilot Loans

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BBVA Stop Funding Pilot Loans

Old 8th May 2017, 08:04
  #41 (permalink)  
 
Join Date: Jan 2017
Location: England
Posts: 88
Originally Posted by spaflyer View Post
Yes sir, 3 years in Milton Keynes, sharing apartments with other 5 people, renting a room for 220 pounds per month, another 20 for mobile phone, and 120 for food, and 40 for pocket expenses. But ones again I see comments, like without a car... without an Iphone... without beers... yes sir without all of those, and thats the way to save money....
Let me congratulate you on how you saved money but please don't take the moral high ground in this. Somebody else posted similar a few days ago but hastily deleted their post as well. Everybody has individual circumstances.

From your story you said you stayed for 3 years, this tells me it was a number of years ago. Rent has risen far far quicker than wages, particularly in SE England. A double impact of deflated wages and rising rents would squeeze your 600 a month closer to 4-500 over the past few years. As a ball park comparison I think I'm correct in saying the standard whitetail course at one of the big 3 UK schools has risen from 69,000 to 89,000 in 10 years. Of course modular is not as extreme.

With super low interest rates your real terms cash value is probably decreasing almost as quick as you save it!

I assume you never visited home once, bought anyone a Christmas or birthday present, didn't travel anywhere beyond work and home, or never once went out for a meal with a friend or colleague? Kudos if you are that disciplined.

Of course all of us saved in one way shape or form, and it's to be encouraged. However, the way you describe it is almost like you want a pat on the back and everyone should do as you do!
I could go on and on but don't want to detract from the main purpose of this topic.

My two pence says that BBVA leaving the market will cut off one of the only ways into the integrated schemes for some folk. A shame really.
Schools are going to have to react by cutting their costs as invetably it will have an impact, albeit minor on student numbers. Some of these schools have massive back office operations working behind the scenes. A rough guess says 15-20% of my coursemates used BBVA.
Thegreenmachine is offline  
Old 8th May 2017, 10:38
  #42 (permalink)  
 
Join Date: Oct 2011
Location: N.O.Y.B.
Posts: 545
Well guys, I've just been told they haven't stopped offering pilot loans and the application page will be back online shortly.
EZY_FR is offline  
Old 8th May 2017, 11:23
  #43 (permalink)  
 
Join Date: Nov 2013
Location: UK
Posts: 154
Not sure if you are trolling us, I think you can achieve those savings if you're living with you parents and they are kind enough to let you off the hook, otherwise I'm not so sure.
No I was not living with my parents, the apartment was located in Conniburrow Blv (Im not from UK), about 120, yes I had some meet, but was not the base of my diet, and I weight 90kg,

om your story you said you stayed for 3 years, this tells me it was a number of years ago
Yes you are right it was from 2013 to Dec 2015, but also the minumum wage has grown a litle bit, and Ive worked all I was able to, included overnight shifts, weekends, bank holidays, to save even each extra penny.

I assume you never visited home once, bought anyone a Christmas or birthday present, didn't travel anywhere beyond work and home, or never once went out for a meal with a friend or colleague? Kudos if you are that disciplined.
No visit to home, Ive asked parents to visit me instead. For Christmas Ive bought a Bottle of Rum, and Toblerone (my first Christmas) and a subscription to Aviation Exam for the ATPL, as soon as I progressed and moved to better jobs, then everything changed.

I dont want to indoctrinate anyone, and everyone is free to do whatever they want, but what I wanted to point is it can be done without loans, and without mum/dad behind.
spaflyer is offline  
Old 8th May 2017, 13:15
  #44 (permalink)  
 
Join Date: Oct 2005
Location: Cambridge
Posts: 50
That's very interesting EZY_FR - was that from the bank themselves?
Rupert369 is offline  
Old 8th May 2017, 14:57
  #45 (permalink)  
 
Join Date: Nov 1999
Posts: 2,303
Even in UKwith minimum salary of 6 pounds per hour a single person can make around 1000 pounds per month net (at least), and after paying your cost of life, it left you with 600 pounds per month, allowing you to save 7200 per year, and thats on the minimum wage! if you start working with 18 years, at the age of 30, you are mentioning, and supposed you didnt progress anyhow in your life you will have close to 87K pounds.
There is a parent inside of me that really wants to agree with you. In 2011 I started to follow the progress of a new group of cadets who started their careers with us, from one of the big 3 training schools. Broadly speaking, it had cost them around 90,000 at the time of their training (2011/2012). Over the past 5 years a few have moved on to other companies such that there now around 70% of that group left. In that time the group would have earned around 275,000 gross. Because of the favourable tax treatment of their training bonds (where they took advantage of those) that gross figure would have been around 225,000 net. That is (broadly speaking) around 45000 per year take home. For those that took out loans to cover their training (all but two that I am aware of) the average repayment schedule was around 7 years. Of this "snapshot" group some have already repaid their loans and some are within 24 months of doing so. Every circumstance is different and the sums borrowed vary from individual to individual, but broadly speaking to amortise these loans over the last 60 months would have cost the individuals up to 1500 a month. That still left an average sum of 2250 per month. Judging by the number who now have mortgages and new cars, I am guessing they actually have a lot less to show at the end of the month! Of this same "snapshot" group, the first few have just obtained their promotions which will take them into six figure gross salaries. Coupled with the end (or impending end) of their training loans, these individuals are looking at a significant rise in their net salaries. Given the age range of this group was 19-32 with the majority below 25 at onset. They are now 24-37 with an average age of around 27/28 at this point.

As a caveat, and before anybody else jumps in, this is a snapshot of one group I have been able to follow since 2011. It isn't necessarily representative of any other group, it doesn't take into account reductions to T&C's for new entrants over the intervening period, nor should it be the basis for anybodies individual future planning. However, it does highlight the fact that if this particular group had, instead of borrowing (where applicable) deferred to saving 7200 a year, those savings would have been completely eroded by the increased cost of the same programme. They would have been worse off by the reduction in the terms on offer 5 years later. They wouldn't be looking at a command for at least another 5 years. They would (at best) have put their careers on hiatus for 5 years if not their whole lifestyles.

As I say, even though the parent side of me wants to agree with you, the flip side (for those for whom everything has worked out well) presents another viewpoint.
Bealzebub is offline  
Old 8th May 2017, 16:23
  #46 (permalink)  
 
Join Date: Apr 2012
Location: UK
Posts: 243
Taking out a loan seems to be a reasonable proposition if the interest rate stays low, or the interest rate is fixed, you have some degree of "performance protection" and you are on a programme with an offer of a job at the end. However, without the above I'd say it's a pretty big risk.

Of course, the commercial aviation industry is very fluid, especially with these training programmes. In early 2011, no candidates could have forecast the BA FPP emerging, nor could anyone have forecast in 2014 that Aer Lingus would announce the following year that their cadet programme would be fully paid for. Of course, things can go the other way too but I gain the impression that in order to succeed in this industry you do have to be able to grab the right opportunity at the right time.
Chris the Robot is offline  
Old 8th May 2017, 22:40
  #47 (permalink)  
 
Join Date: Jan 2012
Location: Below transition level
Posts: 333
Originally Posted by Chris the Robot View Post
In early 2011, no candidates could have forecast the BA FPP emerging
Which was funded completely through a BBVA loan, albeit one which BA agreed to secure. But the FPP isn't really any different to the other airline schemes from Easyjet, in fact it was completely managed by APL/CTC/L3.
Fostex is offline  
Old 9th May 2017, 10:25
  #48 (permalink)  
 
Join Date: Jan 2017
Location: UK
Posts: 22
Can echo what EZY_FR has said. Loans (at least those who have already applied) will not be affected. Straight from the horses mouth
FlyingSaucepan is offline  
Old 9th May 2017, 11:35
  #49 (permalink)  
 
Join Date: Feb 2001
Location: The Winchester
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I gain the impression that in order to succeed in this industry you do have to be able to grab the right opportunity at the right time.
Nail hit on head, and that is something needs repeating a thousand times for the benefit of those those who think it will be "better to wait and join next year"/ "I'll delay doing a course for 6 months becuse of X, Y, or X".

It's been like that for decades, and IMHO that's how it will continue.
wiggy is offline  
Old 9th May 2017, 12:30
  #50 (permalink)  
 
Join Date: Jun 2016
Location: Scotland
Posts: 75
I can also confirm, according to BBVA themselves that the closures will not affect applications already in progress, and these cases will continue to be completed as normal.
ScotWings is offline  
Old 9th May 2017, 13:17
  #51 (permalink)  
 
Join Date: Feb 2017
Location: Canada
Posts: 24
So...if I understand correctly....any new applications will not be entertained at the present time or future, not if they select to re-entre the market again in the UK. But all other markets are still open for financing options with BBVA.
westend is offline  
Old 9th May 2017, 14:04
  #52 (permalink)  
 
Join Date: Jul 2012
Location: Glasgow
Age: 30
Posts: 140
This might be of interest to some, Sainsburys appear to be offering up 40k unsecured loans.

Big increase on what I have seen over the past few years (generally up to 25k).

Keep in mind, that's not a very good interest rate but it's interesting to see a provider offering such a large amount unsecured.

Unless I'm missing something!
gordonquinn is offline  
Old 9th May 2017, 14:39
  #53 (permalink)  
Thread Starter
 
Join Date: Jun 2014
Location: Earth
Posts: 667
Go sainsburys to become a pilot ROFL

Last edited by Officer Kite; 9th May 2017 at 15:16.
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Old 9th May 2017, 17:39
  #54 (permalink)  
 
Join Date: Nov 2016
Location: FLSomething
Posts: 158
If you honestly think that as a 19 year old you can just walk into a supermarket and collect 40k from opposite the fish counter with no security then I'm afraid you have a fairly delusional view of the finances required

If you can get a loan with BBVA you can probably get a loan with another bank, perhaps not as much but at least something, and probably for a better rate

As for working minimum wage for 12 years then doing it after saving, if you're still on minimum wage after 12 years then have you really got the aptitude to command multi-million dollar jets?...
VariablePitchP is offline  
Old 9th May 2017, 18:20
  #55 (permalink)  
 
Join Date: Jul 2007
Location: Calgary
Posts: 60
It may well be worth looking at the Wings Alliance webpage on costs and finance. It gives some good, practical advice in this area. It is aimed more at the modular route but relevant for integrated too I would suggest.
mftx7jrn is offline  
Old 10th May 2017, 14:47
  #56 (permalink)  
 
Join Date: Jul 2012
Location: Glasgow
Age: 30
Posts: 140
Originally Posted by VariablePitchP View Post
If you honestly think that as a 19 year old you can just walk into a supermarket and collect 40k from opposite the fish counter with no security then I'm afraid you have a fairly delusional view of the finances required
AYE THEY COULD

Definitely agree it's no good for that scenario, but a PPL with say 100 hours PIC, decent salary in their current job, could possibly use it to fund a modular course to complete their training. Perhaps I have a fairly delusional view of the value of fish.

To be honest, I just found it interesting to see a high street lender openly offering such a large loan product.
gordonquinn is offline  
Old 18th May 2017, 07:46
  #57 (permalink)  
 
Join Date: Feb 2014
Location: London
Posts: 49
Has anyone heard any news regarding this? Are BBVA definitely stopping this, some have mentioned in other threads they are still listed as a finance option for other schemes.
flyingintheclouds is offline  
Old 18th May 2017, 12:47
  #58 (permalink)  
 
Join Date: Dec 2010
Location: UK
Posts: 227
Hi @flyingintheclouds,

As an existing client of BBVA, it was confirmed by my account manager that the off-the-shelf BBVA pilot loan is indeed being withdrawn. The date given for the final acceptance of paperwork was last Friday, the 12th. BBVA would honour any applications received by this point and take them throughout the standard assessment process. Any loans already active will remain such until maturity. Whether BBVA remain in the market but only in association with an airline remains to be seen and I say this due to CAE OAA's claims of BBVA support in regards to its CityJet scheme.

Hope this clarifies things.
gbotley is offline  
Old 18th May 2017, 13:56
  #59 (permalink)  
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Join Date: Jun 2014
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Originally Posted by gbotley View Post
Whether BBVA remain in the market but only in association with an airline remains to be seen and I say this due to CAE OAA's claims of BBVA support in regards to its CityJet scheme.
It is still there, but I think that's just because it is yet to be removed, the page wouldn't seem to have been updated since last year other than the SSJ picture now there and the "reopening soon" bit rather than "it's closed".
Officer Kite is offline  
Old 18th May 2017, 14:22
  #60 (permalink)  
 
Join Date: May 2017
Location: Essex
Posts: 5
Originally Posted by gbotley View Post
There are not many things that annoy me... but the tone of some people on this forum beggars belief! To insinuate every person seeking help from a bank is irresponsible is far from reality. In fact, speaking with truth here, the majority I know whom have borrowed from the bank - myself included - ARE those who are the most respectful about money!
Couldn't have put it better myself
J380 is offline  

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