School fee planning for homeowners
Fund the school fees
– without borrowing them all at once.
A flexible facility secured against your home equity lets you draw funds as fees fall due, term by term and pay interest only on what you’ve actually used.
FCA-regulated Firm
Free & No Obligation
Confidential
20% VAT
Applies to private school and boarding fees since January 2025
15+ Terms
Beyond Fees
The real cost of independent education
Independent education involves a series of costs rather than a single payment — and annual fee increases add further pressure. Families with more than one child can face overlapping commitments for a decade or more.
Set against a mortgage, retirement planning and everyday family life, the real question isn’t how to pay the next invoice. It’s how to support your child’s education without weakening the household’s broader financial position.
School Fees
Uniforms
Transport
Trips
Music tuition
Sports
Equipment
Exam costs
The foundation
Home equity is the difference between your property’s current value and the borrowing secured against it. For eligible homeowners, it can support additional secured borrowing to manage scheduled education costs.
This is secured borrowing. It requires careful advice, affordability checks and a clear repayment plan, which is exactly what a Connect consultation covers.
Example: Where the equity sits
£250,000
£350,000 gross equity
£0
Property Value £600,000
Gross equity is not the amount you can borrow. Lenders assess income, expenditure, credit history, term and purpose, and may apply a maximum combined loan-to-value.
A SMARTER STRUCTURE
A Home Equity Line of Credit (HELOC) is a flexible facility secured against your property equity. Rather than taking the full amount on day one and paying interest on all of it immediately, you draw funds as invoices arrive and pay interest only on what you’ve used.
Traditional lump-sum loan
Borrow all funds upfront
Pay interest on the full balance immediately
Fixed borrowing structure
Limited flexibility
May include repayment penalties
Connect HELOC
Draw funds when needed
Pay interest only on funds used
Flexible drawdown facility
Draw, repay and redraw as required
Products available without early repayment charges
A FAMILY EXAMPLE
£100,000 of education costs, without borrowing £100,000 upfront
James and Sarah expected fees and related costs of around £100,000 over five years. Rather than borrowing it all on day one, they set up a flexible facility and drew funds as each year’s costs arrived.
School fees, uniforms and essential equipment
Monthly payment: £157.67
School fees, transport and extracurricular activities
Monthly payment: £298.76
School fees and educational trips
Monthly payment: £441.08
School fees, music lessons and sports programmes
Monthly payment: £584.95
School fees, study resources and university preparation
Monthly payment: £730.55
Illustrative example only. Based on a 5-year HELOC over a 30-year repayment term at 7.49% interest. This does not constitute financial advice.
The Outcome
FREE, NO OBLIGATION CONSULATION
Whether you’re planning ahead, reviewing existing arrangements or feeling the pressure of rising fees, a Connect education finance specialist can help you understand:
Confidential. No obligation. No pressure.
A Home Equity Line of Credit is a facility secured against property equity. Subject to the product terms, funds may be drawn up to an agreed limit when required. Interest is generally charged on the amount drawn. Rates, fees and repayment terms vary.
A Home Equity Line of Credit is a facility secured against property equity. Subject to the product terms, funds may be drawn up to an agreed limit when required. Interest is generally charged on the amount drawn. Rates, fees and repayment terms vary.
Not always. Both may be secured against a property while the existing mortgage remains in place, but a standard second charge commonly provides a lump sum, while a HELOC may offer a reusable or staged drawdown facility. The precise structure should be confirmed before proceeding.
Not always. Both may be secured against a property while the existing mortgage remains in place, but a standard second charge commonly provides a lump sum, while a HELOC may offer a reusable or staged drawdown facility. The precise structure should be confirmed before proceeding.
It depends on property value, current secured borrowing, household income, regular expenditure, credit history, loan term and lender criteria. Available equity alone does not determine affordability.
With some flexible facilities, interest is charged only on the amount drawn. Other fees may still apply — the lender’s illustration will set out the rate, charges and projected repayments.
This depends on the product. Some facilities permit overpayments or early repayment without charge; others impose early repayment fees. Check these conditions before applying.
Contact the lender as soon as possible. Because the borrowing is secured against the property, missed payments can place the home at risk. Consider changes in income, interest rates and household spending before borrowing.