The Scale of the Commitment
Average UK private school fees are around £15,000 to £18,000 per year for day pupils and £30,000 to £45,000 for boarders. With VAT now applied to private school fees since January 2025, these costs have risen further. Over a child's school career from age 4 to 18, a day pupil could cost £210,000 to £250,000 in fees alone.
Even covering a few years of fees through remortgaging involves borrowing a substantial sum. It's crucial to think about whether the ongoing cost is sustainable across the full period your children will be in education, not just the immediate term.
How Remortgaging for School Fees Works
Rather than borrowing the entire multi-year cost upfront, most parents remortgage periodically to release equity as needed — perhaps once a year or every few years. This keeps the additional borrowing manageable and means you're not paying mortgage interest on money sitting in a bank account.
Each time you remortgage, you'll need to pass affordability checks and have sufficient equity. If property values stagnate or your income changes, future remortgages may not be approved for the amount you need. It's wise to have a backup plan in case remortgaging isn't possible in later years.
The True Cost Over Time
Borrowing £15,000 per year for school fees and adding it to a 25-year mortgage at 5% means each year's fees ultimately cost around £26,000 in total repayments. Over seven years of secondary schooling alone, that's over £180,000 in repayments for £105,000 in fees. The interest cost is enormous when spread over a full mortgage term.
If you can afford to overpay the extra borrowing within a few years, the total cost reduces significantly. Alternatively, paying fees from income (if possible) or from savings avoids interest costs entirely. Many families use a combination of methods to manage the expense.
Alternatives to Remortgaging
Before committing to a remortgage, consider other approaches:
- Paying from income — budgeting to cover fees from your regular salary, potentially with some lifestyle adjustments
- Savings and investments — building a dedicated education fund over time through ISAs or other investments
- Grandparent contributions — family members may be able to help, with potential inheritance tax benefits
- School bursaries and scholarships — many private schools offer financial support based on academic ability or family circumstances
- Fee payment plans — some schools offer monthly payment plans or discounts for paying terms or years in advance
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual rate available will depend on your circumstances. Think carefully before securing other debts against your home.