I want to buy a helicopter

neomagik

Hi all,

I am looking at buying a kit helicopter which will set me back around 40 - 45k. I basically want to know the very lowest %APR loan that I could possibly get for this level of borrowing?

I am a home owner, have good credit history and no ccj's.

Anybody out there have any advise to get me started?

Rob.

Mark7799

Are you a homeowner?

Do you have equity in your home?

Are you prepared to put this in support of a loan?

neomagik

I don't have a huge amount of equity yet and I'm looking at maybe making the purchase in two to three years time.

I'm really just looking at what options are available and what level of monthly repayments I can expect for paying off the loan within say a 10 to 15 year period.

In answer to your question, yes I would be prepared to put whatever equity I have accumulated at the time in support of the loan.

To be absolutely clear though, what exactly would be the benefit (or drawbacks if any) of doing this?

Thanks

Rob.

nomoneytoday

Unsecured loans are capped at £25k
Above that maybe secure the loan on the helichopper?
Or remortgage and pay cash?

p.s. can I have a go lol

mrcow

The only way you are going to be able to borrow this money is to secure it, probably against your home. So you are going to need to have a property which is going to build up this kind of equity within the given period and then find a lender willing to lend you the money.

It will affect your current mortgage deal if you are still within a penalty period. You will have to pay fees (solicitors, valuation & lenders fees) and may also have to pay a redemption penalty if switching lenders. On top of that, the extra borrowing is going to cost you aroud £500 per month for the next ten years.

Also bear in mind that house prices have been increasing rapidly over the past 10 years. This will slow and as many predict may even reverse. By borrowing more against your property you are at more risk of ending up in a negative equity situation.

My advise? If you don't have £45k to pay for this and you can't save at least half of it up in the two year period, then you can't afford it! It sounds a completely daft idea to be putting your home at risk for something like this.

If you are not looking at buying it for a couple of years, then start by putting £800 per month into a savings a/c right now. That will give you around £20k over the two years and your options could be better after this time.

If you cant afford to do this, then you can't afford a helicopter.

Xbigman

Also, there is a significant cost to owning a helicopter. You have to store it somewhere and you cannot take off from just anywhere either. There is also a pretty tough air worthiness certificate (MOT) to get through plus don't forget the cost of flying lessons.
Regards



X

neomagik

Thanks for all the replies.

@Xbigman> I am fully aware of C of A certificate that is required from the CAA, I am well underway with my flying lessons and my garage is large enough to build and store the ship. The other thing is the insurance costs which I believe can be significant to say the least.

@mrcow> Thanks for the advise. I must admit, saving up hadn't even crossed my mind but I'm glad you mentioned it. I perhaps wouldn't put £800 a month away but I could put a smaller amount away for a few more years.

@nomoneytoday> Of course you can have a go!:eek:

tyllwyd

If you want to play around with figures to compare different deals over different amounts of time, this site has got a loan calculator
http://www.fsa.gov.uk/consumer/04_CREDIT_DEBT/loan_calculator.html

rjm2k1

Have you considered putting together a syndicate to share the cost between a few of you? Also, another option might be to just hire a chopper when you want to fly, would work out cheaper and you wouldn't be responsible for the insurance and maintenence. My BIL has a share in a 2 seater RANS plane, and their insurance is supposidly 1200 per year.