Financial advice

Page may contain affiliate links. Please see terms for details.

T4tomo

Guru
SL is taken out of net pay ie. it doesn't count as a deduction for Tax, so you wont pay more tax by having paid off the loan. so you are saving the 1.1% interest. what else would you have done with the £2289, if it was just stick it in the bank earning 0.1% interest then you are saving money.

Provided it wasn't about to be written off after 30 years (a roughly £54 capital a month that's about 3.5 years more to pay it off at current earnings level) you've probably saved yourself a bit financially, and a lot phycologically.

A large number of people will end up having a proportion their loan written off after 30 years, for those people, early repayment could be a costly mistake, it then becomes a balance between future interest saved, time value of money and "saving" of the projected write-off.
 
Top Bottom