Soaring numbers of parents are applying for bank loans to give their children a private education.

Household expenditure across the country on school fees reached an estimated £7.9 billion last year, up from £6.9 billion in 2001/02.

But the figures, from Sainsbury's Bank, show that parents in the West Midlands are spending less on private education than almost anywhere else in the country.

Although fee-paying grammar schools in Birmingham are regarded as among the best in England, the average spend per household in the region between 2002/03 and 2004/05 on school fees was just £156 per household.

That compared with £577 per household in London, £301 in the Southwest, £249 in Yorkshire and Humberside and an average figure of £275 for the United Kingdom as a whole.

Sainsbury's Bank said it had seen a 38 per cent rise in applications for loans to cover independent school fees over the past 12 months - with many families re-mortgaging their houses in order to raise enough cash for school fees.

And although the bank advises customers to shop around for the best deal, 38 per cent of those obtaining a loan from Sainsbury's obtained only one quote.

Steven Baillie, loans manager at Sainsbury's Bank, said he expected to see numbers grow further as fees have risen by about 50 per cent since 1999.

Mr Baillie said: "Around 620,000 children are now privately educated in schools which are consistently charging more in fees.

"The average fee increase in 2005-2006 was 5.7 per cent and since 1999, they have risen by around 50 per cent.

"Given this, and the fact that more children are being privately educated, we expect to see a growing number of parents taking out loans to help pay for their children's education.

"Those parents doing this need to make sure that they shop around and find a competitive loan rate."

Households in the East Midlands spent the least, averaging £140.40 per year.

Total UK household expenditure on education fees increased by almost 15 per cent between 2001/02 and 2004/05. In 2004/05, total household expenditure on education fees was an estimated £7.876 billion, compared with £6.860 billion for the period 2001/02.