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Mortgage w/ student loan
Cgunner
Posts: 1 Newbie
Hi all - looking for someone who could help clarify what is the better option for me at the moment with some maths...
I'm about to enter the world of mortgages, and have a student loan remaining of £8500. My mortgage will be at 2.49% (initially) and the student loan is at 1.5% at the moment. My student loan payment is made monthly via PAYE.
Now, I have enough savings to pay off the student loan amount. If I did this, I'd have extra money in the account each month which would go towards overpaying the mortgage. Surely that's a good thing financially? Or will I still end up paying more in the long run because I'm accruing more interest on the mortgage amoun?
The sums are doing my head in. I know paying off higher interest sooner is better - but what if that extra money is going towards another loan? Does that factor change th bbetter option?
Thanks!
I'm about to enter the world of mortgages, and have a student loan remaining of £8500. My mortgage will be at 2.49% (initially) and the student loan is at 1.5% at the moment. My student loan payment is made monthly via PAYE.
Now, I have enough savings to pay off the student loan amount. If I did this, I'd have extra money in the account each month which would go towards overpaying the mortgage. Surely that's a good thing financially? Or will I still end up paying more in the long run because I'm accruing more interest on the mortgage amoun?
The sums are doing my head in. I know paying off higher interest sooner is better - but what if that extra money is going towards another loan? Does that factor change th bbetter option?
Thanks!
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