Spending & Earning
Stretched UK Parents Tap Home Equity to Pay Surging School Fees
Specialty finance firms report surging interest for lines of credit, remortgaging and short-term loans as families grapple with rising education costs.
Eton College.
Photographer: Andrew Testa/The New York Times/Redux
This article is for subscribers only.
UK families are tapping the equity locked up in their homes and taking out other lines of credit to meet the escalating costs of private education.
A new 20% tax on school fees is adding to the already stretched finances of many UK households, with parents increasingly turning to specialized firms that help manage school fee payments. The strategies range from US-style home equity lines of credit to monthly installment plans and remortgaging.