Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

Pay off mortgage or student loans?

23 replies

bullseyebraces · 23/02/2015 19:50

Just musing.

If you got a lump sum of money, would you put it towards the mortgage or the student loan debt? Mortgage is £70k, student loan about £30k.

We currently pay back more on the loans in monthly payments than on our mortgage but I don't know the different interest rates off the top of my head.

OP posts:
nottheOP · 23/02/2015 19:51

Whichever has a lower interest rate

nottheOP · 23/02/2015 19:52

Sorry higher, duh

FeelTheNoise · 23/02/2015 19:52

Definitely mortgage!

ThinkIveBeenHacked · 23/02/2015 19:52

Mortgage. It will get you an asset quicker.

Quitelikely · 23/02/2015 19:53

Mortgage without a doubt

Original poster
bullseyebraces · 23/02/2015 19:53

Yes, mortgage makes sense to me. I just resent that monthly payment to the SLC!

OP posts:
goldvelvet · 23/02/2015 19:53

Mortgage because if you ever stuck and need a big lump sum of money in the future you can access it through remortgaging.

scratchandsniff · 23/02/2015 19:54

Mortgage

thatstoast · 23/02/2015 19:54

I would usually say mortgage but it would depend on what time of student loan you have. Is it pre 99?

thatstoast · 23/02/2015 19:54

Time=type

Original poster
bullseyebraces · 23/02/2015 19:55

No, post 1999.

OP posts:
MinesAPintOfTea · 23/02/2015 19:57

Mortgage. If you lose your job then your slc repayments stop. Your mortgage payments only stop if its paid off.

PrincessOfChina · 23/02/2015 19:58

Mortgage. Your loan repayments are income based so you'd be crazy to pay off early unless everything else was cleared. And even then I'd be tempted to chuck it in savings instead.

thatstoast · 23/02/2015 20:01

Post 99, definitely pay off the mortgage. For income contingent loans, don't pay any more than the required minimum.

Fluffycloudland77 · 23/02/2015 20:03

Mortgage.

Original poster
bullseyebraces · 23/02/2015 20:09

So now I know what to do with it, I just need the lump sum Grin

OP posts:
Trills · 23/02/2015 20:14

Mortgage, if I had one!

ScrambledEggAndToast · 23/02/2015 20:17

Mortgage. I don't even think of my student loan as a loan, just an extra tax. As others have said, you don't even pay it if you aren't earning, you can't say that about your mortgage.

Jackieharris · 23/02/2015 20:22

Mortgage always.

Student loans are really a graduate tax disguised as debt,

SpecificOcean · 26/02/2015 14:23

Mortgage because it is a real debt. Student loans are just paid via wages, if you earn enough and get wiped out eventually anyway.

43percentburnt · 28/02/2015 07:44

Mortgage unless you can get a savings rate higher than your mortgage interest rate, if you can then put into savings. (This will depend on how long ago you took out your mortgage).

Original poster
bullseyebraces · 28/02/2015 19:44

Student loan sure feels like a debt, only have to be earning £16k for them to start taking it back!

OP posts:
IfYouWereARiverIdLearnToFloat · 28/02/2015 20:00

Personally I paid off my student loan early - it is def still a debt and I'm a bit OCD - it feels so much better to know my money is my own every month.

New posts on this thread. Refresh page
Swipe left for the next trending thread