Case Study – Example 1

Mr and Mrs Williams have two children in secondary education at a local private school. They have estimated that over the next 5 years, the school fees will come to approximately £125,000. They like the idea of a Secta Flexiplan, but they want to know how much they can borrow and how much the repayments might be.

How much can Mr and Mrs Williams borrow on the Secta Flexiplan?

  1. They think the value of their home is approximately £560,000.

2. Their outstanding mortgage is £330,000.

3. They put these amounts into the Step 1 of the Secta Flexiplan calculator:

So, as a rough guide they can see that they may be able to put in place a Secta Flexiplan for up to £90,000.

They are not sure whether they want to borrow the whole amount, but on the other hand it would give them peace of mind knowing it was available, especially as they know they only pay interest on the actual amount they drawdown.

They have a look at Step 3 of the calculator to see how much the monthly repayments might be if they decide to repay it over 20 years (knowing they can always repay it earlier than they if they want to).

They type into the calculator the amounts that they think they might like to drawdown each year (into the turquoise column) and they can see that their monthly repayments would be approximately £126 in year one and increasing to £554 in year 5.

They decide to submit the online enquiry form to get further information.

2560 1707 Secta Finance