Wedding Loans

If you're looking for a great deal on wedding loans we can help. In addition, our impartial guide may have the answer to a few other questions that you’d like to ask.

The Wedding Loans market

Each year, there are approximately 300,000 weddings, which take place within the UK. Weddings are becoming more extravagant, lavish and ultimately more expensive with each new generation that comes to pass. Analysts speculate that as an accumulative total, the weddings market is worth close to ½ billion each year, with the average bash costing in excess of £20,000. Not surprisingly then that a large percentage of couples are often forced to turn to credit or specifically wedding loans as a means to partly or even wholly fund the cost of their big day.

Who offers Wedding Loans?

There are a number of different lending institutions offering wedding loans as part of their product range, typically however, the key difference between the availability of such loans is very much dependant on the applicants residential status and credit history. As over 70% of newly wed couples are below the age of 30, ordinarily, very few tend to own their own home. For this reason, the vast majority of wedding loans are acquired on an unsecured basis meaning that security or collateral cannot be offered as part of the agreement. For some borrowers, this factor can often create undesirable restrictions on the loan, such as limitations on the actual amount that can be borrowed (usually no more than £10,000) and a sizeable reduction of the term in which the wedding loan can be repaid across.

On the other side of the coin, borrowers who do own their own home prior to their wedding date tend to have far more flexibility and scope with regards to the type of wedding loan that is available to them. Some common benefits often associated with secured wedding loans include: -

• The ability to borrow larger amounts (UK plans range from £5,000 up to £150,000)
• Sizeably increased loan terms (Max terms range between 25-30 years)
• Cheaper rates of interest, dependent on personal financial circumstance and credit history. (Rates can start from as low as 6% APR).

Homeowners tend to find that lenders are far more receptive to their request for a wedding loan and will also be more likely to oblige in their request for a larger amount. However, it is paramount for borrowers to not overstretch themselves and to consider the following points before submitting an application.

Points to consider before submitting a Wedding Loan application

A person’s Wedding is considered to be one of the most joyous occasions of his or her life, however, it is important to remember that any debts accumulated whilst planning the big day are likely to linger well into the couples married life. For this reason, it is advisable to consider some of the following points before deciding on which type of wedding loan you require, and how much you realistically need to borrow.

• Planning - Before you decide on how much you need to borrow, make sure you know how much you need to borrow. One common mistake, which people often make when planning the day of their wedding is to over estimate the actual cost of the event. It is advisable to thoroughly assess all variables when considering your budget and to ensure that the value of the wedding loan does not exceed the actual cost. Of course, hitting the nail square on the head will be difficult, but getting relatively close to it should not be.
• Affordability - As mentioned above, it can be all too easy to get carried away with your wedding plans and quickly exceed your desired budget. If you are planning to use a wedding loan to fund the lion’s share of the event, then it becomes absolutely vital to ensure the repayments of said loan fall comfortably within the realms of affordability. The last thing that a newly wed couple needs, only weeks into married life is the stress and strain associated to managing the repayments of a wedding loan.
• Future Aspirations - The decision as to whether a wedding loan is taken and if so, as to how much it will be for, should always be made in conjunction with your partner. In the vast majority of cases, a difference in opinion with regards to the term, value and type of loan acquired will become apparent when openly discussed. Often, these conflicts arise when one partner is adamant that certain features are included within the wedding plans, whereas the other partner is more concerned about the financial implications associated to such features. It is important to apply careful consideration as to what will be needed after the day of the marriage (such as a new home, larger car ect) and to then decide if the chosen wedding loan plan is likely to conflict with these aspirations.

To Conclude

Providing applicants of wedding loans are meticulous in the consideration of budgetary issues and loan affordability, then this type of finance can be extremely useful. It is also important for applicants to pay close attention to the terms of the agreement and to be sure that any definitions or terminology used within the documents are both coherent and transparent. If you are unfamiliar with a specific loan term or phrase, then it may be worth your while to review our loan resource centre and/or glossary.