Equity Release For School Fees
Yes, in many cases you can. If your home is mortgage-free and worth around £300,000, raising £50,000 is a relatively modest level of borrowing (around 17% LTV), which is often workable subject to affordability and the lender’s age criteria.
The right route depends mainly on your age, income, and how you want the borrowing to be repaid.
Option 1: A standard remortgage (capital raising)
This is usually the simplest and cheapest approach if you have provable income and you’re comfortable making monthly repayments.
You take a residential mortgage secured on your property and release a lump sum. You then repay it over an agreed term, just like any other mortgage.
This tends to suit households where school fees are a planned, ongoing cost and the mortgage payments are easily affordable alongside them.
Option 2: A retirement interest-only mortgage (RIO)
If you’re older and want lower monthly outgoings than a standard repayment mortgage, a RIO can sometimes work.
You typically pay the interest each month, and the capital is repaid when the property is sold (often on death or moving into long-term care). The lender will still assess affordability, but it can be a useful middle ground for some retired borrowers.
Option 3: Equity release (lifetime mortgage)
If you’re 55+ and want to avoid mandatory monthly payments, a lifetime mortgage can release money with the balance usually repaid when the home is sold later on.
The trade-off is cost over time. Interest rolls up, which can materially reduce the remaining equity and the inheritance you leave behind. It can also reduce your flexibility later, so it’s one to take advice on rather than treat as a quick fix.
What lenders will look at
Even at low borrowing levels, lenders will still check:
- your income and outgoings (including existing school fees)
- credit history
- your age and the term you want
- property type and valuation
If you’re looking for maximum flexibility, it’s also worth thinking about early repayment charges. If there’s a chance you’ll repay the £50,000 early (for example, from a bonus, investments, or downsizing), the product choice matters.
A practical way to decide
A good starting point is to ask yourself two questions:
- Do I want to repay this monthly, or later from the property value?
- Is this a short-term bridge for fees, or a longer-term decision?
Those answers usually point you towards standard remortgage/RIO versus equity release.
What to do next
Work out the monthly payment you’d be comfortable with if you went down the standard remortgage route, and whether you might repay early.
Then speak to a broker to sense-check lender options quickly. With borrowing this low, the biggest difference is often not “can you do it?”, but “what’s the cleanest, lowest-regret way to do it for your age and plans?”.
If you’d like to discuss your enquiry in more detail, please call 023 8235 2300 and we can arrange for you to speak to one of our consultants.
