Remortgage to get money to train as a pilot!

Amon_2

Hi,
I need some help if anyone out there is kind enough!
Basically I want to remortgage my house to pay for a Commercial pilots licence. I need £20,000.
I currently own 75% of my house. (the other 25% is owned by a housing association.) I have an outstanding mortgage of £74000 and my share is worth about £104,000 or more at the moment. My current mortgage is interest only and the tie in period ends this month. I had planned to remortgage at the end of this period anyway. Is it possible to remortgage to get this money or would I be better off getting a loan?
Help would be much appreciated! Amon

MarkyMarkD

The list of lenders who will lend to shared ownership owners is limited. Whilst the rates on large personal loans can be very competitive (around 5.6% APR) the repayments on such a large loan will be very high. The benefit of a mortgage is that you can spread the repayments over a long time.

It all really depends on your disposable income - and I suspect that if you are in a shared ownership house in the first place, you haven't lots of spare income. That supposition may be wrong, but if it's right, you probably can't afford a personal loan for £20k.

Amon_2

Thanks for your help MarkyMarkD

Probally cant afford loan so going to try for remortgage. Not sure how lenders will react to the fact that Im using the money for flying training. However it will increase my earning potential when I finish.

StratApproach

Hi

Have you tried for a professional loan?

Are you looking at doing the training whilst working?

I have a PPL with ratings etc... purely for pleasure and I must admit with the number of 'unemployed' or training pilots is it wise to borrow against property, b'cause it increases your monthy cost.

I know how you feel, some of my friends have sold up to go for it, cutting all costs ie going out, and now living on the cheap. Its a huge commitment - but can be worthwhile.

The only worry I have for you is having paid out all the cash and not being any better off for the expenditure, due to waiting for the job to come along or being on 10-15K pa as an instructor . My experience is I spent over 15K on an MBA, plus loss of salary and the market had dropped out for me too. Luckly I never stretched to far and I'm now consulting whilst I finish it, but the gloss of doing it has gone.

Also, (I'm sure you know anyway) is that the cost doesn't stop after you training, maintaining your licence and ratings is very costly and having a mortgage to apyout makes things worse.

In hindsight, I should have continued working and stopped at the postgrade Diploma - thats my story.

Above said, go with you heart...you only have one life, but do plan a few scenarios. I even did a night rating, but can't imagine flying at night, b'cause I don't do enough day flying due to change in focus of what I want to do.

You may be already using this site....https://www.pprune.org....if not its great for all your answers.

Good luck