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Mortgage: pay off student loan?
smnberryman
Posts: 61 Forumite
Hi
My OH and I both have student loans (totalling ~£17k) and we pay a combined £200 a month on them. We graduated in 2006 so the current interest rate is 1.5%
Anyway, using an example house price minus our deposit results in a mortgage payment + student loan payment of £1190 a month.
If we were to pay off the loans (using some of the deposit) and therefore reduce our deposit the mortgage payment could only be £1070 a month.
Would paying off the loans early (potentially!) be a good idea to explore?
Thanks
My OH and I both have student loans (totalling ~£17k) and we pay a combined £200 a month on them. We graduated in 2006 so the current interest rate is 1.5%
Anyway, using an example house price minus our deposit results in a mortgage payment + student loan payment of £1190 a month.
If we were to pay off the loans (using some of the deposit) and therefore reduce our deposit the mortgage payment could only be £1070 a month.
Would paying off the loans early (potentially!) be a good idea to explore?
Thanks
0
Comments
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Student loan is always the last thing to pay off IMO.
I had no problem getting a mortgage with a student loan (I graduated 2009 and owe about £16,000 on my own). It's such a small percentage of the salary to not make much of an issue.0 -
Yep that's what I had thought.
It had been suggested by a HSBC mortgage adviser so I thought I would try some figures and gauge some opinions!0 -
Idiot advisor.0
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£200 a month is being deducted from affordability so the amount you can borrow is being reduced accordingly.
Repaying the student loan would be a reasonable idea if you need a bigger mortgage.
Repaying other more expensive credit would of course be a more sensible first step.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
The HSBC Mortgage Adviser suggested you secure your unsecured student loan against your new property - nice.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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