Unsecured Loans
 

Does anyone know the best few places to look for unsecured loans? Ones where you don't start paying back until you're earning money?

At 18 years old i'm new to all the 'lending from banks' thing.


appreciate any help


Snowy_owl

You will struggle with this - you may find a 3 month deferral but all that happens is your first 3 months payments are added onto the loan.

With the potential credit-crunch, banks are going to be even more careful on their lending criteria and there is a cap of 25k for unsecured loans.

HSBC in Oxford and Milton Keynes have relationships with OAT and Cabair respectively and they offer secured loans up to 50k (60k for cadets) and unsecured loans up to 25k and both of these loans are deferred until after you complete your training but this is only for integrated students I believe. If you phone the Cornmarket branch of HSBC in Oxford and speak to James Henton you will find out more about what they do.

I also believe that BBVA will loan to students of some of the UK schools - definitely OAT but not sure about the others.

You are eligible for a Career Development Loan which is a government backed scheme but this is only for a maximum of 8k and only from 3 banks (try google for details of this) and again that is deferred during training.

Hope that helps.

The Hythe branch of HSBC has an arrangement with CTC for financing their Wings Cadet scheme but they won't (as far as I'm led to believe) offer any funds unless you have passed all 4 stages of selection, have a valid JAA Class 1 Medical Certificate and have been allocated a place on a Wings course with CTC. The contact at HSBC in Hythe is Lynda Loveless.:ok:

Thanks for all the help guys. So i take it that HSBC are the people to ask, it's just so hard to find information out on their websites!

Well i'll be going around some banks tomorrow!

SO

Im just a year or so older than yourself, not earning a great deal....

When I was looking for a loan, the largest unsecured loan I could take out was about 9K...which is not enough to fund a fart let alone a flying addiciton...

The only way around it was to get my parents to act as guarantors....We discussed it and I COULD afford the repayments of a much larger loan but it leaves me with very little (read "none") beer money each month..

Provided I keep up the repayments for the next decade my parents wont loose their house:sad:

My understanding is that unsecured loans for (the whole cost of) flight training are a thing of the past, except for those who make it onto the CTC cadet scheme. I believe that HSBC used to offer "Professional Studies Loans" for trainees at the integrated schools, but this went west a while ago. Anyone with more information is very welcome to correct me however.

Loans
 

I hear that hsbc still do the loans but i think its only for those on a cabair or oat course. I may be wrong thou !!! :ok:

Without being on some kind of scheme the high street banks won't lend you any more than 4 figures under the current banking crisis conditions.

If borrowing is your sum plan then you are in trouble. You would need around £50k of borrowings and that will be costing you AT LEAST £575 to pay back even if you could find any bank that would offer you a 10 year loan at 7% (which you won't).

As a flying instructor you would be doing well to take home £800 a month. Food, petrol, insurance and other essentials would have to come out of the £225 a month left after loan repayment.

You might conceivably starve or freeze to death at this point.

Sorry,

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Anywhere but Northern Rock!!! ;)

I wonder if your course would be elligible for a Student Loan...

http://www.slc.co.uk/

Worth checking as rates are low and deferred payback.

Some twaddle being advised here.

Banks are in the business of lending, that is what they do. The "credit crunch" is a result of commercial banks being unwilling to make short term credit facilities available to other banks to cover those banks longer positions.

Banks are still making loans, millions every week. Some will be applying better credit checks, and being more choosey about the sort of clients they want on their books. In fact bareing in mind the previous paragraph, banks are already doing this to each other.

The statement that is pure nonsense. £9999.? Generally unsecured borrowing has and still is available up to a normal limit of £25,000, providing you have the criteria to satisfy loans of that amount.

Banks are businesses, and like any business they need to profit to survive. They are not some sort of social service, or dream fulfillment charity. They have always worked on a "profit is payment for risk" basis. In other words the cheapest borrowing is offered to the customers most likely to be able to satisfy the contract. As the risk increases so does the cost. For any given individual that risk becomes unacceptable from onset ( application) up to the lending limit.

If you can satisfy the lender that you are a good risk and are likely to repay the borrowing, or a guarantor will repay the borrowing, then you are just as likely to be offerd a loan this month as you were last month. If you are at the "high risk" end of the business, you will very likely find the situation more difficult. However this is the way it should always have been and in reality is no bad thing. In the not too distant past, some people on this forum were advocating "planned bankruptcy" as a way to proceed. A sub prime policy that results in tougher and perhaps more responsible credit markets.

A flying career requires sensible planning and responsible actions as well as a very conservative attitude to risk. If the same attitude is applied to fiscal borrowing, then for most people the same opportunities exist today as did a few months ago.

Given that me old Mum sells loans for Barclays I can say with a high degree of confidence that a teenager this week wanting £50k for flying training and not coming through something like CTC wouldn't stand a chance.

Banks really have tightened up their lending. They really really have and its going to get tighter yet.

I note the the good people at LloydsTSB who gaurd the Weasley gold have just sent a letter explaining how overdrafts are to be tightened. And I have an epic credit rating..

I did say a few weeks ago that I think the credit crunch will see fewer dreamers walking through the doors of the flying schools next year.

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Perhaps then an unexpected bonus - both for those out there looking for their first flying job, and for those of us already in one. A pinch in pilot supply can only drive up terms and conditions.. well, on second thoughts, it would in any other job!

Really? This intrigues me greatly.

Go back a year and most wannabes would struggle to get a Career Development Loan plus £10k for an Any Purpose loan on top. £65k secured against nothing would have been remarkable even before the current turmoil where banks don't want to lend to risky clients.

I am pretty sure that on my six figures I couldn't get Natwest to just lend me £65k...

Enlighten us.

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Far from another lamb to the slaughter-an interesting financial coup de gras!

I will need 10-15k for my IR/FI, and Nat West didn't say yes or no, but they did say that with the right plans and realsitic objectives this was not an impossible ask. I have been with them for most of a decade.

Right. So you ACTUALLY borrowed the money off your Dad who borrowed it off the bank.

Which is ever so slightly different. Ever so slightly.

I hope your Dad understands the risk on return he has made.

Cheers

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Northern Rock are on the brink of break up at 130p a share yesterday. All hope of a takeover have disappeared and the spectre of a vulture fund break up and asset strip looms. Shareholders will be lucky to get 30p a share. They traded at over £12 earlier in the year..

Their product was a highly dangerous one. Their 'Together' mortgage was offering 100% mortgages with a 25% non-secured loan on top. So Gary and Tracy Chav were able to buy their nasty terrace for £100k with nothing down and then go and splurge £25k on a new kitchen, sofa, Sky TV and Plasma + luxury holiday. Funny enough now their house isn't worth £125k so they are in negative equity. Plus their lifestyle is grinding to a halt as they cannot refinance their credit cards by remortgaging.

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How does that work for current personal unsecured loan borrowers then? Sorry, but I'm not too hot on financial stuff although have been keeping an eye on Northern Rock as I have an unsecured personal loan with them just now.

RS999 - it won't impact on you in any way. If NR do fold then your loan will be sold on to another company who will retain your terms & conditions / rate etc.

Their loan book will be sold on at a significant discount. Everyone knows that they will have a high default rate on their 5 times income lie-to-buy 125% LTV "products".

The sad thing is that people like myself could see this unfolding at NR over a year ago.

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