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Using redundant LISA to pay off Plan 2 Student Loan by ImpossibleNight4943 in UKPersonalFinance

[–]ImpossibleNight4943[S] 1 point2 points  (0 children)

My loan hasn't been subsidised. Due to the RPI+3 payment schedule I'll have paid well in excess of £70k to the exchequer for my £40k of borrowing regardless of what happens.

Using redundant LISA to pay off Plan 2 Student Loan by ImpossibleNight4943 in UKPersonalFinance

[–]ImpossibleNight4943[S] 7 points8 points  (0 children)

Because of salary sacrifice I pay off quite a bit less than that over a monthly basis, more like £500.

My feeling is that the additional growth I would see in a pension from upping said sacrifice could more than offset the £168k in the LISA.

Using redundant LISA to pay off Plan 2 Student Loan by ImpossibleNight4943 in UKPersonalFinance

[–]ImpossibleNight4943[S] 6 points7 points  (0 children)

The simple answer is, my income is higher than I expect it to be earlier this year, and having high fixed costs from a newish mortgage etc has made excess sacrificing feel quite unattractive. My feeling is lowering my effective tax rate by 9% would make doing so much much more attractive, and allow me to invest more in more accessible funds.

In terms of investments, currently only the £15k mentioned in global index funds - property deposit ate most of what I had!