Although it wouldn't be the usual advice, in this situation it feels best to pay it off straight away as you'll be paying it off anyway. The interest you're paying on the loan is far higher than any other loans you hold and the interest you're getting on your savings. So seems a no brainer to me.
Forget the student loan for a second. You have £30k earning you ~£28 per month in interest. That works out at an annual interest rate of 1.12% on £30k.
You should move that money to an account with higher interest immediately. There are plenty of instant access accounts with >3% interest, which would give you a monthly return of over £70 on £30k.
As for paying things off, there's no point over paying on your mortgage, when current account interest rates are higher. Stick the money in a savings account until the end of the term, then clear a chunk of when remortgaging.
With that said, the interest on your Plan 1 loan is higher than on any current account. So you should pay that off first. Then save your additional money in a high rate internet account and clear your credit card balance just before the 0% interest offer expires.
Thank you. I'll look into shifting my savings to an account with a higher interest rate.
That's a good point about the mortgage. It's buy-to-let and fixed until April (or so) 2025. I'm paying around £120 per month just to pay interest.
Hi /u/Ecstatic_Choice9074, based on your post the following pages from our wiki may be relevant:
- https://ukpersonal.finance/student-loans/
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^(These suggestions are based on keywords, if they missed the mark please report this comment.)
Although it wouldn't be the usual advice, in this situation it feels best to pay it off straight away as you'll be paying it off anyway. The interest you're paying on the loan is far higher than any other loans you hold and the interest you're getting on your savings. So seems a no brainer to me.
Thanks. That's helpful.
Forget the student loan for a second. You have £30k earning you ~£28 per month in interest. That works out at an annual interest rate of 1.12% on £30k. You should move that money to an account with higher interest immediately. There are plenty of instant access accounts with >3% interest, which would give you a monthly return of over £70 on £30k. As for paying things off, there's no point over paying on your mortgage, when current account interest rates are higher. Stick the money in a savings account until the end of the term, then clear a chunk of when remortgaging. With that said, the interest on your Plan 1 loan is higher than on any current account. So you should pay that off first. Then save your additional money in a high rate internet account and clear your credit card balance just before the 0% interest offer expires.
Thank you. I'll look into shifting my savings to an account with a higher interest rate. That's a good point about the mortgage. It's buy-to-let and fixed until April (or so) 2025. I'm paying around £120 per month just to pay interest.
Hi /u/Ecstatic_Choice9074, based on your post the following pages from our wiki may be relevant: - https://ukpersonal.finance/student-loans/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.)