Stretched UK Parents Tap Home Equity to Pay Surging School Fees (1)

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.

“We’re seeing a massive uptick in the number of people looking at these options,” said Darren Perry, operations director at Secta Finance, a firm that allows homeowners to borrow against ...