Student loans to pay for mortage?

Mogley

Mogley wrote: »

I have not looked at the SLC website in a while.

I have just looked at the interest rate history for post 2012 student loans and they make for interesting reading.


http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678755&_dad=portal&_schema=PORTAL


When I view the link from the SAAS website for Scotland for interest rates it directs me to the pre-2012 interest rates which make for much better reading. I'm not sure which the OP will be charged though (I assume it will be the latter).


http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678642&_dad=portal&_schema=PORTAL

Mogley

Good news for the OP is that the rate of interest that will be applied for the duration of the loan will be the RPI figure for March of that year or BOE rate +1% which ever is the least.


So for 2016/2017, RPI in march 2.3% which is the rate applied to post 2012 loans (England and Wales)


For Scotland and Northern Ireland the rate of interest is 1.25% for 2016/2017 (BOE +1%).

glasgowm148

silvercar wrote: »

Naive to assume the rate will always be low and that your earnings won't lead to higher rates of interest.

From the link above;

"After studying, earning £21,000 – £41,000:

The interest rate will gradually rise from RPI to RPI plus 3% the more you earn (the interest rises 0.00015% for every extra pound you earn or, put another way, if you earn £1,000 more, you accrue 0.15% extra interest). These thresholds are frozen until 2021, but could rise with average earnings after.

After studying, earning over £41,000:

Accrues RPI inflation plus 3%."

If times becaome tough for you, in expenditure terms, you could regret having to pay 9% of income above X on a debt that is growing as against 2-4% interest on a loan.

Not really naive if I've come here to double check, is it?

Do those figures apply to Scotland too? can't find anything definitive