Posted on 2 May 2018
Can I remortgage to raise money for school fees?
Whilst some lenders are prepared to release funds from your home to cover school fees, not all will.
It's worth noting that lenders will need to ask why you’re raising funds and although logic dictates that this question is asked at the outset of your enquiry with the lender, we’ve heard from clients that this doesn’t always happen which can cause a degree of hassle or even result in your application being declined where the lender is unhappy with your planned use for the funds. Selecting the right lender and speaking to a decision maker is key.
Another consideration, for you and the lender, is the amount you need to borrow. Where school fees are concerned the lender and you will want to ensure that the amount being raised (plus any savings you have) is sufficient to cover the school fees until such time as your children leave school.
You might also be interested in reading our article on offset mortgages, this is great way to ensure you aren’t paying mortgage interest on school fees that aren’t required to be paid right now. Click here to find out more.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.