Drawn in stages as fees became due.
The clients arranged a £400,000 second charge loan to cover school fees for their three children. The facility was set up so the funds could be drawn in stages as each term’s fees became due, rather than taking the full amount upfront. This meant the family only paid interest on the money as it was used, making the arrangement more flexible and cost-effective.
For a number of years, the children’s school fees had been generously paid by the grandparents. While the family were extremely grateful for the support, the client and his wife eventually felt that it was time to take on the responsibility themselves rather than continuing to rely on them long term.
The client decided to quietly arrange the funding himself, with the intention of surprising the grandparents at Christmas by letting them know that the school fees were now fully taken care of.
The total annual school fees for the three children were £184,500, with each child’s fees costing £20,500 per term across three terms per year. By structuring the loan with staged drawdowns, the client could release funds in line with each school term, ensuring the fees were always covered when needed.
This structure ensured the children’s education could continue without disruption, while also removing the financial responsibility from the grandparents and allowing the parents to take full control of the costs moving forward.