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Original poster

will i be able to remortgage my house for school fees

32 replies

asdmumandteacher · 14/11/2008 14:26

This is my plan as DS1(9) will prob not get 11plus. We are both teachers. Have about £100k equity (is that right word??) in the house. No debts/loans/credit cards. Good financial rating i would imagine. Can we say that we are going to remortgage for this?

OP posts:
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juneybean · 27/09/2014 08:40

This thread is 6 years old the laddy in question is probably finished with school!

circular · 27/09/2014 08:37

Just replying about the mortgage aspect rather than why funds required.

Would it be possible to change your mortgage to a flexible, with a limit 50k more than your current borrowing. That way, you can draw down amounts if and when you need them, and also overpay without penalty. Some may also still have an offset account where temporary savings reduce your mortgage interest (if you cannot get a better rate on them elsewhere).

123upthere · 27/09/2014 03:23

Have you asked him what school he'd prefer, when the time cones?

Given his needs etc I think you need to slow it down, and think of the easiest option both for you financially and for him

ie maybe him going to a local school with his friends from primary will do more for him than knowing you have locked yourself in to paying a whack just so he can be educated at such and such a school.

He may resent the pressure to perform well there just so you get your money's worth iykwim

savingpeoplemoney · 27/09/2014 01:48

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NewTeacher · 05/12/2008 15:27

Secondary school fees are at minimum £4k a term thats £12K a year. Dont forget the cost of uniform. Add into that the cost of school trips etc which are NOT optional they are just added to your end of term fees!!

Remember each year there will be a rise in fees, he will be at school upto GCSE 5 years so a minumum of about £75k to cover you is £50k going to be enough??

Original poster
asdmumandteacher · 19/11/2008 07:04

no boarding schools - have SN younger son and elder son needs mummy time - i don't agree with boarding schools personally unless absolutely vital (forces children etc)

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BoffinMum · 18/11/2008 18:54

What about one of the better state boarding schools as an alternative? 6k a year.

squeakypop · 17/11/2008 21:20

You don't need a loan for 50k up front though. I'm assuming that the OP can partially afford the fees, giving that she is able to save something now. It is then just the case of a top-up.

Original poster
asdmumandteacher · 17/11/2008 20:04

about 12K a year

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morningpaper · 17/11/2008 20:03

(how much are the fees?)

morningpaper · 17/11/2008 20:03

ok

just try not to be too bitter when you are still paying it back when he is 34

Original poster
asdmumandteacher · 17/11/2008 20:03

Am trying desperately to save - have managed about a years fees from last three years of saving

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Original poster
asdmumandteacher · 17/11/2008 20:02

thank you morning paper.Its our only option really.

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morningpaper · 17/11/2008 20:00

@ 5% 50k will cost 334 per month on top of your normal mortgage

plus arrangement fee (1k)

(would be 557 at 12%)

(no idea how much your fees would be, but it is worth bearing these figures in mind)

morningpaper · 17/11/2008 19:57

bear in mind that it is not just the extra money you will have to pay, but it is also the WORSE DEAL that you will most likely have, which is adding on average £150-200 (I think) per month compared to mortgages taken out 2 years ago

morningpaper · 17/11/2008 19:55

They don't care why you remortgage, as long as you can pay the loan back

You will need to have about 25-50% equity in the house I'd imagine but I am just plucking that figure wildly out of the air

Can you pay it back? 50k is quite a whack if you are both struggling for money

Interest rates might still go bonkers - could you pay it back if they hit 10%?

Original poster
asdmumandteacher · 17/11/2008 19:51

thanks guys

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squeakypop · 17/11/2008 16:53

The easiest route would be to look at whoever you have your mortgage through.

Original poster
asdmumandteacher · 17/11/2008 09:14

Can you tell me exactly who i need to phone please - a mortgage broker? Is the thing i need to get called a 'flexible additional facility'? Would like to get this sorted asap but worried obv about credit crunch stuff (economics not exactly my strong point!)

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SueW · 16/11/2008 21:55

Why not ring a broker and ask if there are any good deals around following base rate cuts as you are looking to re-mortgage and get a line of credit.

We're like squeaky and we have a mortgage plus a flexible additional facility - all agree when we re-mortgaged a few years ago - which has a cheque book (although in practice we tend to just use online banking). We keep any additional funds we have in the flexible mortgage account to reduce the interest and tfr to current account as necessary. But when we've had bad times, we've drawn large amounts down.

squeakypop · 16/11/2008 21:30

We have a chequebook with our mortgage, so have an agreed line of credit up to about 80% of the house's valuation (our actual mortgage is more like a third of the valuation).

When I wasn't working we occasionally wrote a cheque for the fees (two children in prep). Now that I am working, we seem to be keeping up, despite 3 children in senior schools.

The chequebook works well because you just borrow what you need at the time - you don't have to borrow ahead of needing it.

Original poster
asdmumandteacher · 15/11/2008 19:35

Thanks but as i work in a GS i asked my pupils the other day who was born in August (28 kids) - NONE of them! they don't standardise it that much unfortunately...i have studied the year 7 stats
Thanks for good wishes tho

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UnfortunatelyMurderedMe · 15/11/2008 15:52

They standardise the test to take into account the younger children taking it. He might surprise you! Good Luck!

Original poster
asdmumandteacher · 15/11/2008 15:48

haven't done any practice papers yet - he is working thru the bond (aged 9-10) books with a tutor..but he is unfortunately in 'remedial' group (late August - left handed - brother with severe SN - life has been difficult for him to date really)It would be nice but not holding my breath

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UnfortunatelyMurderedMe · 15/11/2008 09:29

Did I read somewhere on mumsnet that you are in Kent?
A pass is just over 50%, is he getting that in the practice papers?