Case study – Example 2

Mr and Mrs Roberts have one daughter who has been in state education and they are considering private education for their daughter’s A-levels.

They have estimated that the cost of 2 years A-level education plus school trips and sports equipment will be in the region of £34,000. They have a home worth approximately £450,000 and an outstanding mortgage of £200,000. They enter these figures into Step 1 of the Secta Flexiplan calculator:

They can see that they could potentially borrow up to £138,000 with a Secta Flexiplan, but they only want to borrow enough to cover the school fees with perhaps a bit of a buffer.

They decide to see how much their repayments might be if they put in place a Secta Flexiplan of £40,000 to be repaid over 10 years (although they don’t think they will drawdown the entire amount down):

If they decide to drawdown £20,000 in Year 1 and £14,000 in Year 2, the estimated repayments in Year 1 would be £207 per month and £365 per month in Year 2. They like the idea of taking the plan over 10 years to reduce their monthly costs and they know they can repay it earlier if they choose.

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