Integrated flight training costs anything from £100,000 – £120,000 a figure that most people understandably do not have. The two big major schools offer a loan through a bank called BBVA.
This is a terrible idea! Do not take a loan to fund integrated flight training (unless it’s a small affordable amount).
Let me explain to you why in detail that this is such a terrible idea. NB – Unless you get accepted on the BA Future Pilot Program then go for it as BA will repay this back to you.
- Pilot salaries are being driven down year on year. The glory days of pilots earning huge wages seem to be a distant memory, you will most likely start on £20,000 – £35,000.
- You most likely will not be assigned your home base. A lot of people just assume they will be flying from the nearest airport to them. For most of the airlines you can be based right around Europe! So out goes the option of living with parents to save money as you will need to pay rent, bills and food out of this salary. Oh yeah don’t forget that HUGE loan repayment you have signed yourself up for.
- Interest rates are at an all time low. The last time I looked at the loan it was 3% plus the Bank of England interest rate which of course is 0.5%. It will not be staying there with the head of the bank saying that he expects them to rise as soon as next year. Lets do some simple math shall we. The loans are over 10 years and including the Bank of England rate that gives you a repayment of £988 a month. This does not even include the two years that the loan will gain interest as you train. Now we will assume you will earn 30k a year, with no student loan which will give you a salary of £1,957.27 per month. Take away the £988 loan payment and you are down to £969. Out of this you need to pay for your rent, food, bills etc.
Now lets say the interest rate goes up to 5.5% this now makes your payment £1085.25 a month. You are now left with just 872.02 a month. At 7.5% you repayment rises to £1,187.02 and you get the picture. The numbers do not add up, at all, no matter which way you look at them. - You have put a house up against this loan. Basically if you cannot afford to service this loan at any point the bank will come in and take your house or even worse, they will come in and take your parents house. How will you feel about making your mum, dad, siblings homeless? Like crap that’s how you will feel.
Please anyone even looking at this, do the math, do it again, get your parents to do the math, get your friends to do the math, ask a stranger to do the math before even considering this! Get a job and go modular for as much as half the price.
This is defiantly a case where your head has to rule your heart.
Hi, enjoying the blog and reading my way through. What are you thoughts as to taking a large loan out from the bank to fund an MPL course with a job at the end? Also I was surprised to read how low the salaries are, from what i’ve read the salaries are pretty good. Maybe in the 20-30k region for years 1 and 2 but sharply rising after that. Of course the salary isn’t the driver to wanting to become a pilot but when considering the large financial investment one has to consider the prospective returns.
I think that taking a loan for an MPL makes more sense then taking a loan for a whitetail course because of the job offer.
However the issue with borrowing so much money is what if the worst happens? What if you get qualified and lose your medical? Or a down turn happens and you lose your job, or say you failed your line training?
Now think, this loan is probably going to be secured against property, possibly your parents house. If the repayments are not made they will come after this.
I just think people looking to borrow so much money should sit down and think about the what if’s. Sure it’s all great when everything goes as you expect but what about if something doesn’t.