Loans for funding flying training.
Educated Hillbilly
Having dual FAA and JAA ratings can widen the jobs available to you. Although the powers above have been trying to clamp down on FAA registered aircraft in the UK, there is still a reasonable number of aircraft on the N reg in the UK. If you have the FAA ratings as well then you may be able to get a job flying something on the N reg based in the UK.
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Loan Information
Hi there,
I have read many of the threads regarding financial loans for flight training as I am looking at starting this summer. This question is really aimed at people who have taken loans from the banks shortly after graduating from university.
I will be graduating this June with the minimum student loan (approx £9000) and would like to know if people in a similar position found that this affected or limited the loan amount the bank allowed you to take on. Of course this will vary due to individual circumstances however I would like to get a feel for how recently graduated uni students got on when visiting the banks.
Any views or experiences greatly appreciated!
Cheers,
WD
I have read many of the threads regarding financial loans for flight training as I am looking at starting this summer. This question is really aimed at people who have taken loans from the banks shortly after graduating from university.
I will be graduating this June with the minimum student loan (approx £9000) and would like to know if people in a similar position found that this affected or limited the loan amount the bank allowed you to take on. Of course this will vary due to individual circumstances however I would like to get a feel for how recently graduated uni students got on when visiting the banks.
Any views or experiences greatly appreciated!
Cheers,
WD
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I believe BBVA lend the full course costs for Flight Training Europe students and their interests rates are somewhat lower which makes quite a difference when you're talking about 65k!
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Loans
Hi WD,
I am exactly the same position, I have just finished my MSc Sep 2005 and have a total debt of about £10 000, if your credit rating is good then it wont limit you when approaching Banks. If on the other hand you have a poor credit score then you could find yourself a bit tight.
The SL is considered a debt that is payable only after finding suitable employment above a certain threshold and payable directly to the SLC so I dont think the banks will concern themselves with this?
I may be wrong, but when I made some initial enquiries, this is what I was told. Its purely to do with your credit rating and whether you have any SUBSTANTIAL COMMITMENTS such as a mortgage and the SL is not considered as substantial.
No doubt someone will slate me and say that Im wrong but hey
Best thing to do is approach your bank manager directly.
Good Luck
Scoobs
I am exactly the same position, I have just finished my MSc Sep 2005 and have a total debt of about £10 000, if your credit rating is good then it wont limit you when approaching Banks. If on the other hand you have a poor credit score then you could find yourself a bit tight.
The SL is considered a debt that is payable only after finding suitable employment above a certain threshold and payable directly to the SLC so I dont think the banks will concern themselves with this?
I may be wrong, but when I made some initial enquiries, this is what I was told. Its purely to do with your credit rating and whether you have any SUBSTANTIAL COMMITMENTS such as a mortgage and the SL is not considered as substantial.
No doubt someone will slate me and say that Im wrong but hey
Best thing to do is approach your bank manager directly.Good Luck
Scoobs
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Hi Scoobs,
This is as I thought, I know I will not have to pay back my student loan until earning over a certain threshold, just wondered whether already having this debt would affect the loan I would be offered. I guess the only accurate answer is going to come from the banks!
I understand your point regarding a poor credit rating, fortuantly I have managed to get through uni without needing credit cards so this should not be a problem. I presume this would be the only way to generate a poor credit rating?
WD
This is as I thought, I know I will not have to pay back my student loan until earning over a certain threshold, just wondered whether already having this debt would affect the loan I would be offered. I guess the only accurate answer is going to come from the banks!
I understand your point regarding a poor credit rating, fortuantly I have managed to get through uni without needing credit cards so this should not be a problem. I presume this would be the only way to generate a poor credit rating?
WD
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When I graduated Uni in June last year i was in a fairly dire financial situation with Debts to the bank as well as the old Student Loan. But I went to HSBC suited and booted with a nice glossy business plan and gave a good spiel and it seemed to work. I had been banking with them since age 13 though. This compunded the confusion for me as it meant the knew how much trouble I got into during Uni going over Overdraft limits and bouncing Cheques etc.
I think what i am trying to say is they will judge each case on its own merits.
Hope this helps.
Proper Job Young'un
I think what i am trying to say is they will judge each case on its own merits.
Hope this helps.
Proper Job Young'un
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Loan for pilot training
Hello people,
I know there have been many threads on financing for a diamond studded ATPL licence on this forum, but I wonder if anyone could shed a faint glimour of light for me??
I currently live with my girlfriend in a house we jointly own, with an average sized mortgage, and very little savings.
How do I go about getting funds? Am I able to re-mortgage to fund my flying, or does it have to be a loan?? I am in a fixed interest at the mo', with my 2 year fixed period ending in June; giving me the option to change it.
Help will be appreciated people.
Over and nearly out!!
I know there have been many threads on financing for a diamond studded ATPL licence on this forum, but I wonder if anyone could shed a faint glimour of light for me??
I currently live with my girlfriend in a house we jointly own, with an average sized mortgage, and very little savings.
How do I go about getting funds? Am I able to re-mortgage to fund my flying, or does it have to be a loan?? I am in a fixed interest at the mo', with my 2 year fixed period ending in June; giving me the option to change it.
Help will be appreciated people.
Over and nearly out!!
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A mortgage is a loan, albeit one that is secured on the property.
The advantages may be that the interest rate is preferable to an unsecured loan. You may be able to borrow a greater amount because of the security.
The disadvantages may be that the loan is usually long term and therefore the total amount repayable may be much greater if the term is realized. Your home is at risk if you fail to keep up the repayments. It may prove harder to trade up as there will be less equity available if other borrowing has been consolidated into the mortgage.
You will still be subject to the lenders normal criteria in respect of your ( and your partners) earnings with regard to the total sum borrowed. If the property is jointly owned you will need your partners written agreement or consent to the new or adjusted loan.
At the end of the day it is an option, but it is still borrowing and additionally it carries the risk of losing your home if you default.
The advantages may be that the interest rate is preferable to an unsecured loan. You may be able to borrow a greater amount because of the security.
The disadvantages may be that the loan is usually long term and therefore the total amount repayable may be much greater if the term is realized. Your home is at risk if you fail to keep up the repayments. It may prove harder to trade up as there will be less equity available if other borrowing has been consolidated into the mortgage.
You will still be subject to the lenders normal criteria in respect of your ( and your partners) earnings with regard to the total sum borrowed. If the property is jointly owned you will need your partners written agreement or consent to the new or adjusted loan.
At the end of the day it is an option, but it is still borrowing and additionally it carries the risk of losing your home if you default.
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No they won't.
That is the difference between a secured and an unsecured loan. In the case of the latter, the lender has a greater risk exposure and that is why the interest rate is often higher and the amount of borrowing more restricted.
That is the difference between a secured and an unsecured loan. In the case of the latter, the lender has a greater risk exposure and that is why the interest rate is often higher and the amount of borrowing more restricted.
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Sounds like you need to firstly speak to your existing mortgage company about what options are available to you in order to raise additional capital.
Some things for you to consider:-
- do you know how much equity is in the property ie: sale price less mortgage. A few years ago when property prices were going through the roof lenders were offering believe it or not 110% mortgages and the like. Nowadays most are more conservative and the norm is in the range of 80-90%.
- if you have some equity in the property and your current bank won't play ball you can always transfer your mortgage to another provider. Make sure that they will enable you to draw down some cash though against your mortgage. My bank Halifax were willing to lend me up to £35k just a month ago on my property based on the equity I had with no questions asked. It was actually for DIY/renovations but in reality I could have spent it all in the pub should I have wished.
- some unscrupulous people (I am sure you are not one
) go for self certification mortgages and low and behold fib about their incomes in order to raise more capital. I am sure you wouldn't think of doing that..wink wink!
When I was looking for mortgages many moons ago Charcol (a broker) had a good online website which kept track of the various deals on the go. Think the Times on Sunday is also a good read in their money section of the current rates.
Clearly usual caveats apply about how will you be able to fund the loans if you don't get a job flying or that job flying won't cover the increased mortgage payments etc but I am sure you have that figured out.
Good luck
Some things for you to consider:-
- do you know how much equity is in the property ie: sale price less mortgage. A few years ago when property prices were going through the roof lenders were offering believe it or not 110% mortgages and the like. Nowadays most are more conservative and the norm is in the range of 80-90%.
- if you have some equity in the property and your current bank won't play ball you can always transfer your mortgage to another provider. Make sure that they will enable you to draw down some cash though against your mortgage. My bank Halifax were willing to lend me up to £35k just a month ago on my property based on the equity I had with no questions asked. It was actually for DIY/renovations but in reality I could have spent it all in the pub should I have wished.
- some unscrupulous people (I am sure you are not one
) go for self certification mortgages and low and behold fib about their incomes in order to raise more capital. I am sure you wouldn't think of doing that..wink wink!When I was looking for mortgages many moons ago Charcol (a broker) had a good online website which kept track of the various deals on the go. Think the Times on Sunday is also a good read in their money section of the current rates.
Clearly usual caveats apply about how will you be able to fund the loans if you don't get a job flying or that job flying won't cover the increased mortgage payments etc but I am sure you have that figured out.
Good luck
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FlyerGuy,
Options: Well may be
1. Buy a house and borrow a shed load more and use that to pay for your course. And at the same time get your spare room / rooms rented out. Thus paying a pecentage of the morgage.
2. Ask your old man nicely if he wouldn't mind re-morgaging for you (I am assuming he has one.)
(Your Dad could say he wanted to do some home improvements. Extension etc.) You can, in turn pay your Dad back. And the rates will be lower.
3. Go back to the back and explain in more detail that you need their help not there crazy 8.7% rates. Funny how banks are so helpful when you have a good paid job. Then you tell them what you want to do and they become unhelpful.
I am sure others will have better ideas. Just some options from me.
Happy days
Options: Well may be
1. Buy a house and borrow a shed load more and use that to pay for your course. And at the same time get your spare room / rooms rented out. Thus paying a pecentage of the morgage.
2. Ask your old man nicely if he wouldn't mind re-morgaging for you (I am assuming he has one.)
(Your Dad could say he wanted to do some home improvements. Extension etc.) You can, in turn pay your Dad back. And the rates will be lower.
3. Go back to the back and explain in more detail that you need their help not there crazy 8.7% rates. Funny how banks are so helpful when you have a good paid job. Then you tell them what you want to do and they become unhelpful.
I am sure others will have better ideas. Just some options from me.
Happy days
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Couple of ideas spring to mind:-
- get your folks to act as guarantor on your loan, this should bring the rate right down. Its probably why Natwest offered you such a high rate in the first place as ideally they wanted more security
- have your folks take out a loan on the premise that they will potentially have a better credit standing than you and you make the repayments to them
- your folks could get a further advance on their mortgage which is usually a low interest rate and typically the same as their existing interest rate
There are of course the obvious implications of you being able to repay and whether you (and them) are prepared to take on the risk of your parents losing their home should you default. Lots for you and them to think about.
- get your folks to act as guarantor on your loan, this should bring the rate right down. Its probably why Natwest offered you such a high rate in the first place as ideally they wanted more security
- have your folks take out a loan on the premise that they will potentially have a better credit standing than you and you make the repayments to them
- your folks could get a further advance on their mortgage which is usually a low interest rate and typically the same as their existing interest rate
There are of course the obvious implications of you being able to repay and whether you (and them) are prepared to take on the risk of your parents losing their home should you default. Lots for you and them to think about.
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Loans catch 22
Hi,
I apologise in advance for bringing up the age old subject of loans. I was wondering if anyone else has been in the same situation as me, and if so, how they got around the loans issue.
I'm looking to borrow £23,000 to pay for my CPL, ME and IR. I'm only doing some part-time work at the moment, because I've been studying to finish off my ATPLs (last set of exams coming up next week!).
The problem I've got is that it doesn't seem that anyone will loan me the money without having a good income. From my side, I want to stay in training full time (which will hopefully only take another 5 months), because the flying jobs market seems to be better than it has been for a while. It seems to be a good idea to keep pushing ahead with the training because of this.
If I went back to my old job I'm fairly certain I could get the loan quite quickly, but I'd lose the momentum I'd built up with my training.
Anybody else had this problem and managed to find a solution ?
thanks
Mungo
I apologise in advance for bringing up the age old subject of loans. I was wondering if anyone else has been in the same situation as me, and if so, how they got around the loans issue.
I'm looking to borrow £23,000 to pay for my CPL, ME and IR. I'm only doing some part-time work at the moment, because I've been studying to finish off my ATPLs (last set of exams coming up next week!).
The problem I've got is that it doesn't seem that anyone will loan me the money without having a good income. From my side, I want to stay in training full time (which will hopefully only take another 5 months), because the flying jobs market seems to be better than it has been for a while. It seems to be a good idea to keep pushing ahead with the training because of this.
If I went back to my old job I'm fairly certain I could get the loan quite quickly, but I'd lose the momentum I'd built up with my training.
Anybody else had this problem and managed to find a solution ?
thanks
Mungo
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From the bank's perspective, unless you have collateral or an income then you have to go back to the job - though momentum is lost, the problem from their perspective is that they won't be able to differentiate you from the many others with fATPL and modular training by the time you qualify, and require some sort of assurance that you will repay.
Obviously this creates a problem from your perspective, however just go back to a job and work as hard as you can to achieve the goal.
I don't think there is any other choice as banks will all assess their credit risk in the same manner - based upon the market and historic defaults.
Obviously this creates a problem from your perspective, however just go back to a job and work as hard as you can to achieve the goal.
I don't think there is any other choice as banks will all assess their credit risk in the same manner - based upon the market and historic defaults.
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Thanks for the post Re-Heat. Just had a meeting with my bank manager today and was pleasantly surprised by her support. I now need to write it all down, so I can quote it back to her, when it actually comes to applying for the loan in 4 months !
Go back to the job, get the loan, then leave the job again and get back into your training. Provided, of course, you can meet the loan repayments without the fulltime job!
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I owe £30,000 to HSBC on a Professional Studies Loan. Unsecured, payments started 6 months after completion of training to allow time to find a job. Proof required at the time was documentation from FTO about the course and the cost, plus my license and log book. I didn't own a house and had no security to offer. A credit search came back good, then the loan was in place after 2 weeks or so. Is this no longer available, it was 20 months ago when I got it?
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Self Sponsored Funding??
Just looking for others experiences and thoughts on my own situation.....
Essentially, I am meant to be starting flight training at the end of June and I am currently trying to nail down my loan (all €100k of it).
Having spoken with all the usual banks (BBVA, HSBC, Ulster Bank) it would seem that they are all geared towards UK based applicants, and that an Irish based property makes it a little tricky. In fact, currently all signs point towards a remortgage being the only option - but of course this would lead to immediate repayments.
No specific question here, but if anyone else on here is self-funding and a fellow Irish man I would appreciate finding out how you did it.
Thanks!
Essentially, I am meant to be starting flight training at the end of June and I am currently trying to nail down my loan (all €100k of it).
Having spoken with all the usual banks (BBVA, HSBC, Ulster Bank) it would seem that they are all geared towards UK based applicants, and that an Irish based property makes it a little tricky. In fact, currently all signs point towards a remortgage being the only option - but of course this would lead to immediate repayments.
No specific question here, but if anyone else on here is self-funding and a fellow Irish man I would appreciate finding out how you did it.
Thanks!