To use equity from the house to pay for private education

[Windsweptly]

Just what the title says really! Is it mad or unreasonable to consider using some equity from the house to pay for private education? Is this something people do or am I just being naive / ignorant? Any big downfalls to doing this? Thanks in advance!

[MojoMoon]

How would you propose to release the equity?

[Racecardriver]

Most people I know who paid for their child's education did this at some point. If that is the only way you can afford it then you have no other option I suppose.

[GerdaLovesLili]

We remortgaged to pay school-fees for Big Son.

[Windsweptly]

We are selling our house and I would keep back some of the equity for school fees rather than put it all in as a deposit for the next house we buy iyswim. No way we could afford fees just from our salaries.

[PancakesAndMapleSyrup]

If you release and pay the fees in one lump sum then you can generally negotiate to pay the fees in full at the current price thus avoiding the yearly increase. Or somthing similar so it is well worth it. However a word of warning i would stipulate a written document agreeing that if you were to leave the school ahead of the time you have paid the fees for, that you would get the remainder back and not lose the money. This is massivley important.
If you can afford to releass equity in the house for the purpouse of your childrens education in my personal view it is money well spent.

[PotteringAlong]

Yes. You would risk your house, your families security and your future to pay school fees? If you need to do this you can’t afford private education.

[PancakesAndMapleSyrup]

Or a proportion of the fees say 4 years worth fixed at the current price.

[AmazingPostVoices]

It puts a lot of pressure on the child. What if they fail all their exams?

[UpstartCrow]

Just accept that like most other people you can't afford school fees. Get them into the best school you can afford, support them through school, and save up for university instead.

[Windsweptly]

I don't understand the last reply, they might fail or pass their exams, I'm confused what that has to do with releasing equity to pay school fees?

[Stirner]

I wouldn't. Schools not important enough to risk the roof over your head.

[PancakesAndMapleSyrup]

Nonsense pottering. We dont know any other details about how they can/cannot afford things. If they can affprd an increase in the monthly mortgage payments then it absoloutly makes sense.

[Windsweptly]

Thank you for all the responses!

[Bluelady]

What Upstart said.

[Windsweptly]

Yes, it would just mean we pay about 200 pounds more a month on our mortgage which we can daily afford. For full disclosure it means we put 150k as a deposit on next home rather than 200k.

[imsoboredwithitall]

Do it. I wouldn't hesitate to if I needed to.

[Windsweptly]

Easily not daily!

[Windsweptly]

We do have good schools here (outstanding) but they have no outside space, massive class size etc hence looking at private.

[Topseyt]

The roof over our heads is more important than school.

I wouldn't to this. It would put terrible pressure on the child.

There are other things to life besides education, important though that is.

[mrscampbellblackreturns]

So is the £50k just to top up school fees?

[BakedBeans47]

I don't understand the last reply, they might fail or pass their exams, I'm confused what that has to do with releasing equity to pay school fees?

Well presumably the reason you want them to go private is for them to achieve well academically and if they don’t you’ll have wasted your money.

I wouldn’t dream of it personally. There are plenty of decent state schools. I’d send them there.

[Amanduh]

I don’t think some posters have read your update. If it was from a house sale and not releasing it when you live there I absolutely would if you can afford it

[Amanduh]

Actually, my answer depends on what your state schools are like though

[Windsweptly]

Thank you. I agree that we wouldn't ever risk our home, I don't see how this would be a risk? However, I totally disagree on the pressure aspect. We would not expect anything in return from our child and would not be disappointed if she failed every exam. We just want to give her the best experience we can so she enjoys school and has opportunities. We aren't considering private school for exam results but for the better facilities, outside space and small class sizes. Hope that makes sense!

[PancakesAndMapleSyrup]

If you can do it go for it. I left an outstanding state school in year 9 when they told my mother i was unlikley to pass any of my gcses. She a single parent unable to afford the fees did indeed release equity to pay the fees. I got 9 A* to B and 1 C. Then onto A levels and Uni.
Paying dosent = exam success. We currently pay for 2, one with mild dyslexia. However they are supported and well rounded individuals which is what i care about much more. (1 cannot cope with exams for toffee)