Secured loans for school fees

Rising fees, tighter budgets - how to plan calmly

England’s tuition fee cap is set to rise by 3.1% in 2025/26, lifting the maximum for full-time undergraduates to £9,535. It is the first increase since 2017 and arrives alongside higher living costs and maintenance support that, while increased, still sits below its inflation-adjusted 2020 value. For many UK families, the sums are sharpening. Independent school fees and sixth form costs add another layer, often payable termly and with limited flexibility if timelines slip.

At the same time, reliance on student finance is expanding. Tuition fee loans paid to England-domiciled undergraduates reached £10.7 billion in 2024/25, with total student loan issuance forecast to rise a further 26% by the end of the decade. Repayments are also up, helped by frozen thresholds and newer loan plans feeding through. The trend is clear - more is being borrowed, and it is taking longer to clear.

That is why some parents consider secured borrowing to cover a defined fee window. A secured loan uses property or another valuable asset as collateral, which typically lowers the interest rate compared with many unsecured options and allows larger loan amounts. Unlike income-contingent student loans, secured borrowing is repaid to a fixed schedule, so you can match payments to fee timetables and household cash flow. For some, that predictability is worth the trade-off in putting a charge on their home.

This guide sets out how secured loans for school or university fees work, the costs and risks to weigh, who might be eligible, and the alternatives to consider. Our aim is simple - give you the clarity to choose the route that fits your family’s finances, not just this year but for every term ahead.

Understanding APR is not just about percentages - it is about what you will pay month by month, and how long for.

Who benefits from this approach

Parents and guardians who want to fund private school fees, sixth form charges or university tuition upfront may value the fixed structure of a secured loan. It can also suit families whose children are starting in England in 2025/26, where fee caps are rising, and maintenance loans remain stretched relative to inflation. If your income varies - perhaps you are self-employed or receive irregular bonuses - you may prefer to borrow against home equity and repay to a timetable you control, rather than rely on means-tested maintenance that can fluctuate.

Crucially, this is not a one-size solution. If you plan to move home soon, or you carry little equity, the risk of securing borrowing against your property can outweigh the benefits. What matters is affordability, term, and a credible exit plan.

Your funding routes at a glance

1. Secured loan on your home - fixed monthly repayments sized to termly fees.

2. Remortgage with capital raise - potentially lower rates but higher fees and longer term.

3. Second-charge mortgage - keeps your main mortgage untouched, flexible terms.

4. Unsecured personal loan - quicker to arrange, usually smaller and higher rate.

5. Savings drawdown - no interest cost, but reduces your emergency buffer.

6. School bursaries or scholarships - may reduce or replace borrowing entirely.

7. Payment plans with the school - staged term payments with limited or no interest.

What it costs and what it could mean

Short standout: Fixed timelines can be powerful when school invoices arrive like clockwork.

Can you qualify - and how lenders decide

Eligibility for a secured loan usually depends on property value, available equity, income stability, credit history, and total outgoings. Lenders will check your affordability in detail, including mortgage commitments, childcare, utilities, council tax and other credit. They will want to see that the monthly payment remains manageable if interest rates rise. If you are borrowing to cover termly fees, expect to evidence the upcoming schedule and any savings buffer you hold. For homeowners with sufficient equity, second-charge mortgages can be attractive because they sit alongside your existing mortgage and avoid disturbing a competitive rate.

If you have experienced recent income changes, such as moving to self-employment, some specialist lenders can still help with appropriate documentation. Where maintenance loans for students fall short - and they often do, because awards can be up to 10% below their inflation-adjusted 2020 level - a parent’s secured loan can bridge the gap with certainty. Kandoo, as a UK-based retail finance broker, can introduce you to a panel of lenders and compare the structure, rate type and fees to fit your objectives. The right fit balances affordability today with resilience if circumstances shift tomorrow.

Step-by-step - from enquiry to funds

1. Outline fee needs and total amount across the school year.

2. Check home equity, current mortgage rate, and credit file.

3. Get brokered lender options with transparent rates and fees.

4. Choose term and repayment that match termly invoice dates.

5. Submit documents - ID, income, statements, and fee schedule.

6. Valuation completed and formal offer issued for approval.

7. Legal checks completed before funds are released to you.

8. Set up repayments and diarise review before each new term.

Advantages and trade-offs

Before you commit - key guardrails

Rising fee caps at universities and growing reliance on student loans have shifted more cost to families, particularly where maintenance support is means-tested. Against that backdrop, a secured loan can feel like a simple answer, but prudence matters. Stress test the payment at a higher rate, plan for a potential fall in income, and avoid stretching to the limit of your equity. If your child may study for multiple years, map the full lifecycle of fees rather than solving for the first term only. Time your borrowing carefully if you expect to remortgage soon. Finally, compare total costs across secured loans, remortgages and unsecured options, including all fees, not just APR.

Alternatives you should weigh

1. Increase mortgage term or product transfer with additional borrowing.

2. Use cash ISAs or premium bonds earmarked for education costs.

3. Arrange instalment plans directly with the school or university.

4. Apply for bursaries, scholarships, or hardship funds where eligible.

5. Consider part-time work or placement years to reduce living costs.

6. Unsecured personal loan for small, short-term shortfalls.

Frequently asked questions

Q: Can I use a secured loan for university tuition as well as private school fees? A: Yes. Many parents use secured borrowing to cover tuition or accommodation costs where timelines are known and payments are fixed.

Q: How does this compare with student loans? A: Student loans are income-contingent and repaid via payroll above a threshold. Secured loans are repaid on a fixed schedule and rely on collateral rather than graduate income.

Q: What about recent fee changes in England? A: The tuition fee cap for 2025/26 rises to £9,535. Maintenance support increases too, but it still trails inflation, leaving a gap many families need to bridge.

Q: Are second-charge mortgages different from remortgaging? A: Yes. A second charge sits alongside your existing mortgage. It can preserve a competitive main rate while raising funds, though fees and rates differ from lender to lender.

Q: Will applying affect my credit score? A: A soft search is common at the enquiry stage. A full application usually involves a hard search, which may temporarily affect your score.

Q: What happens if I miss payments? A: Missed payments damage your credit and can ultimately put your home at risk. Build a buffer and contact your lender early if you need support.

Ready to move forward

If secured borrowing fits your plan, Kandoo can connect you with a wide panel of UK lenders and help compare rates, terms and fees side by side. Share your timeline and fee schedule and we will outline options built around your cash flow, so you can make a confident, informed choice.

Important information

This guide is for information only and is not personal advice. Secured borrowing is subject to status and affordability. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Rates and product availability can change.