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Mortgage or Student Loan

wrighty43
Posts: 7 Forumite

I could do with some advice on what I should pay down first. On paper it looks fairly clear but actually the renewal date on my mortgage is the thing that is making me so indecisive. I have recently come in to a lump sum so want to put it towards one of these from getting rid of my car (nowhere near pay one off in full). What would be best to do ?
Mortgage (this is only one of two parts)
£33k left
20 years
£280ish per month
5.5%
Fixed deal renews December 2025
Student Loan
£15k
£350 per month
6.6%
Mortgage (this is only one of two parts)
£33k left
20 years
£280ish per month
5.5%
Fixed deal renews December 2025
Student Loan
£15k
£350 per month
6.6%
0
Comments
-
Is there an early repayment charge on the mortgage? Mostly student loans are repaid according to ability to repay. Are you repaying it at the moment?
Personally I would go for repaying the mortgage as now inflation is lower the student loan interest rate should be going down.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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If something happened and you lost your job tomorrow you'd still have to pay £280ish towards your mortgage but nothing towards your student loan.
Why pay off something that may be written off without being repayable in the future?0
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