The clients took out a £125,000 second charge loan to help cover their children’s school fees for the full school term. Arranging the funding in advance meant they could deal with the costs in one go rather than facing several large payments across the year. This gave them peace of mind knowing their children’s education costs were already taken care of.
The loan covered the final year of independent education for their daughter, as well as their son’s school fees for the following academic year. By organising the finance this way, the family was able to plan ahead and ensure that both children’s upcoming school costs were fully covered.
After setting aside the amount needed for the school fees, they also had some funds remaining. They chose to use this extra money to carry out some improvements to their home.
One of the main challenges with this application was how the client’s income was assessed. Their income for the current year was expected to increase, but many lenders would not consider projected income and instead only looked at earnings from previous years. Because of this, several lenders were not willing to approve the application.
By working closely with a range of lenders and understanding how each one assesses affordability, we were able to find a lender who was comfortable reviewing the client’s expected income for the current year. After looking at the overall financial position and confirming that the repayments were affordable, the lender was happy to move forward with the loan.