Loans, best way to do it?
Thread Starter
Joined: Nov 2007
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From: Europe
Loans, best way to do it?
Hello, I am a pilot student, 22 years old, full time job with the NHS since 1 year ago.
My parents paid me the ppl, but I´ll have to manage with the rest, which is around 40.000 pounds more? if not more.
I manage to keep around 800 pounds a month after paying taxes, flat, food...which is around 9600 per year.
It may sound innocent but...will a bank lend me 20.000 pounds?
My parents (spanish) have some properties there, 2 houses, and 3 cars, but I haven´t asked them if they would like to put some of that as a guarantee...
Would a bank give me a loan with just my permanent job with the NHS, without guaranties as a house?
If I get the loan, I would become a pilot in 2 years, whereas without it I would need more than 4 years from now.
Honestly, I would prefer being a pilot in 2, paying (comfortably) around 300-500 a month to the bank for the next 5 years.
If I get a job flying in that time perfect, if not, I´ll stay with the NHS until paying the money.
Would you recommend ME+MCC or FI after the CPL and IR, considering my money would be limited...
I will appriciate any advice.
My parents paid me the ppl, but I´ll have to manage with the rest, which is around 40.000 pounds more? if not more.
I manage to keep around 800 pounds a month after paying taxes, flat, food...which is around 9600 per year.
It may sound innocent but...will a bank lend me 20.000 pounds?
My parents (spanish) have some properties there, 2 houses, and 3 cars, but I haven´t asked them if they would like to put some of that as a guarantee...
Would a bank give me a loan with just my permanent job with the NHS, without guaranties as a house?
If I get the loan, I would become a pilot in 2 years, whereas without it I would need more than 4 years from now.
Honestly, I would prefer being a pilot in 2, paying (comfortably) around 300-500 a month to the bank for the next 5 years.
If I get a job flying in that time perfect, if not, I´ll stay with the NHS until paying the money.
Would you recommend ME+MCC or FI after the CPL and IR, considering my money would be limited...
I will appriciate any advice.
Joined: Sep 2007
Posts: 514
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From: earth
Lets say it is only £40,000.00
You will not get a unsecured loan for that amount.
At 22 i would be shocked if you could get a unsecured loan for anywhere near £20,000.
But if you get a loan, you will be ecpected to start paying it back one month after you take the money, so how are ypu going to pay £500 per month while you train?
What will happen, when you have a nice shinny CPL and only 200 hours . I dont see many airlines queing up to take you. Are you going to try to get into instructing?
You will not get a unsecured loan for that amount.
At 22 i would be shocked if you could get a unsecured loan for anywhere near £20,000.
But if you get a loan, you will be ecpected to start paying it back one month after you take the money, so how are ypu going to pay £500 per month while you train?
What will happen, when you have a nice shinny CPL and only 200 hours . I dont see many airlines queing up to take you. Are you going to try to get into instructing?
Thread Starter
Joined: Nov 2007
Posts: 72
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From: Europe
I´ve got already some money after my first year working, and ill have a little bit more next year so borrowing 20000 could do it.
I am doing the DL atpl at the moment, I work normally 3 long days per week, so hopefully I will manage to fly and work at the same time.
500 pounds a month won´t be a problem with my current income, the problem would be working as a flight instructor, whose salary will be probably lower...
I might need to do some extra shifts as a staff nurse while instructing...
Then a 20000 pounds loan will have to be secured...any chances to be unsecured? I don´t know if properties in another country can be used, if it´s not possible i will have to wait to earn the money anyway.
Cheers
I am doing the DL atpl at the moment, I work normally 3 long days per week, so hopefully I will manage to fly and work at the same time.
500 pounds a month won´t be a problem with my current income, the problem would be working as a flight instructor, whose salary will be probably lower...
I might need to do some extra shifts as a staff nurse while instructing...
Then a 20000 pounds loan will have to be secured...any chances to be unsecured? I don´t know if properties in another country can be used, if it´s not possible i will have to wait to earn the money anyway.
Cheers
Last edited by flying free.LEVC; 15th June 2012 at 16:39.
Moderator
Joined: Feb 2000
Aviation Qualifications: CPL
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From: UK
Seriously, and with reference to a previous thread I started - do a PPL now.
Once you have a PPL, and know a lot more about flying, and your own enthusiasm and motivation, make your decision.
G
Once you have a PPL, and know a lot more about flying, and your own enthusiasm and motivation, make your decision.
G
Joined: Mar 2009
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From: In the thoughts of who loves me
If you've got properties abroad, why don't you ask to a bank in that country?
I am probably going to ask for a loan, it will probably not be unsecured but my father is thinking of being my guarantor and helping me with it.
I must admit I am a bit afraid of it, especially because I am planning to go into instructing rather than pay for a TR without a secured job.
I am probably going to ask for a loan, it will probably not be unsecured but my father is thinking of being my guarantor and helping me with it.
I must admit I am a bit afraid of it, especially because I am planning to go into instructing rather than pay for a TR without a secured job.
Last edited by Jerry Lee; 15th June 2012 at 20:37.
Moderator
Joined: Feb 2000
Aviation Qualifications: CPL
Posts: 14,480
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From: UK
I've no idea about bank loans I'm afraid, so will at this juncture sit back and learn from those who do!
G
Joined: Jan 2008
Posts: 802
Likes: 1
From: England
Why not do it one step at a time and save the money as you go.
Perhaps I'm just old fashioned
or know a couple of people who lost the medical and the guy who had no debt was in a far better position to forge a second career.
Perhaps I'm just old fashioned
or know a couple of people who lost the medical and the guy who had no debt was in a far better position to forge a second career.
Joined: Dec 2007
Posts: 1,233
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From: N/A
I approached HSBC last summer for a loan to finish my CPL ME IR, I wanted £20K but they only lent me £14K with a really 
APR.
I wouldn't rush into getting qualified to CPL ME IR level, I wouldn't be surprised if some more smaller airlines go bust this year. What with BMI baby disappearing there will be current experienced pilots all over the shop.
Theres no rush, chill out, save the money and take your time.
APR.I wouldn't rush into getting qualified to CPL ME IR level, I wouldn't be surprised if some more smaller airlines go bust this year. What with BMI baby disappearing there will be current experienced pilots all over the shop.
Theres no rush, chill out, save the money and take your time.
Joined: Aug 2007
Posts: 151
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From: UK
Unsecured Debt
My advice;
Polish up the credit rating and eliminate any outstanding debts. Provided you have a reasonably well paid and 'secure' (This bit turned about to be a joke for me...) job that you have been in for over twelve months, then I don't forsee a problem.
I was working as an Airworthiness Engineer around two years ago, on a salary that was slightly above the national average with an 'excellent' credit rating. I managed to obtain £20,000 from Santander with monthly repayments of around £475 a month. It's a lot, but I don't have any family finances to back me and I could not go secured.
I was also open and honest about what I was planning on doing with the money. The most that can be obtained 'unsecured' in the UK is £25,000 and I believe that can be taken over seven years - but not many banks do this.
All the best!
Polish up the credit rating and eliminate any outstanding debts. Provided you have a reasonably well paid and 'secure' (This bit turned about to be a joke for me...) job that you have been in for over twelve months, then I don't forsee a problem.
I was working as an Airworthiness Engineer around two years ago, on a salary that was slightly above the national average with an 'excellent' credit rating. I managed to obtain £20,000 from Santander with monthly repayments of around £475 a month. It's a lot, but I don't have any family finances to back me and I could not go secured.
I was also open and honest about what I was planning on doing with the money. The most that can be obtained 'unsecured' in the UK is £25,000 and I believe that can be taken over seven years - but not many banks do this.
All the best!
Joined: Aug 2007
Posts: 151
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From: UK
Herein lies a grey area...
The banks will lend 'unsecured' to homeowners for greater amounts and over longer periods than what I have previously mentioned. However, my assessment being, that if you scratch the surface then you aren't really taking an unsecured loan, if you have to be a homeowner.
For a true penniless oik - like my good self, without a turnip shack to shelter under, then you're looking at £25,000 over a maximum of seven years.
The banks will lend 'unsecured' to homeowners for greater amounts and over longer periods than what I have previously mentioned. However, my assessment being, that if you scratch the surface then you aren't really taking an unsecured loan, if you have to be a homeowner.
For a true penniless oik - like my good self, without a turnip shack to shelter under, then you're looking at £25,000 over a maximum of seven years.
