Advice on Car HP Agreement

kalwells

Hi All,

I am hoping someone can advise me on a slight problem I am faced with.

In April 2012 I took out a credit agreement with Santandar Finance for a new car, bought from a main dealer. The credit went through fine, and I am unto date on my payments. I work for the NHS and have done for 10 years - everything has been fine.

A long time ago I applied to undertake pilot training, and was placed into a holding pool, not expecting to hear anything for a long time i have continued with life and my job etc

At the weekend, I got a letter from a flight training school, offering me a course on a commercial pilot training course, of which I have been waiting for a long long time.

The issue is that my car finance agreement is over 3 1/2 years and i am worried that as the course is 14 months full time, I am going to be pushing myself with the monthly repayments for the car, now I have looked at the agreement to see if i can change the repayment term from 3 1/2 years to maybe 4 1/2 years in order to reduce the monthly payments whilst I am training.

I can't seem to find anything on the web, or the FAQ's on the website, tried calling today but of course bank holiday and no one about!

Just wondered if anyone has had any experience of increasing a payment term with this company, or indeed if i can actually do it...... I don't want to pass up the chance to fulfil something i have been waiting for a very long time, but then i don't want to damage my otherwise good credit rating......

any expert help would set my mind at rest somewhat!

Teatwosugars

Hi Kalwells,

I would reconsider 're-financing' the loan. This would mean taking out a new loan (for whatever term you felt comfortable with) and paying off your existing one. Who do you bank with? And how much would you be looking to borrow? (to know this you would have to ring up and get an early settlement figure) It may be worth looking at your bank for a loan. Shop around for competetive rates. If you coud provide me with your bank and how much you want to borrow i may be able to point you in the right direction!

Thanks

BJV

You can depending on your credit rating refinance the loan. This would be the easiest way and give you more choice. This does not have to be with Santander so make sure that you shop around.

No matter what you have to go with your dream other wise you will regret it for ever so not panic wait until Wednesday and call them in the meantime to make sure that they are competitive on prices do your homework on rates etc.

Good luck with the flying course.

kalwells

Hi BVJ,

Am I correct then in assuming I can call Santandar and explain my situation to them, and they will then look to refinance the loan for me internally?

I can afford the current monthly payment as they are now, but of course with the reduction in my "income" as I would be taking a career break, although my job is secure to return to in 12 months as per NHS policies, I am nervous that relying on my savings alone and part time hours will place me at risk of struggling to pay the car payments

pvt

What kind of pilot training course is this? It doesn't take a 14 month full-time course to get a CPL.

BJV

kalwells wrote: »

Hi BVJ,

Am I correct then in assuming I can call Santandar and explain my situation to them, and they will then look to refinance the loan for me internally?

I can afford the current monthly payment as they are now, but of course with the reduction in my "income" as I would be taking a career break, although my job is secure to return to in 12 months as per NHS policies, I am nervous that relying on my savings alone and part time hours will place me at risk of struggling to pay the car payments

There should be no problem, but I would shop around it may be cheaper to take out a new loan on the terms you want and settle the Santander loan.

Think you are totally doing the right thing. It is far better to make plans now to make sure that you do not run into trouble than wait until it happens. After all an opportunity like this may not ever come around again so go for it.

kalwells

pvt wrote: »

What kind of pilot training course is this? It doesn't take a 14 month full-time course to get a CPL.

pvt,

its not the cpl course, it is the ATPL Integrated Course with MCC and JOC. This is a full time course for 14 months, given the ATPL Ground Exams are 6 months in their own right. Of course, after that I then have a further 8-10 weeks Type Rating to do on Airbus 319/320