The average cost of a wedding in 2022 was £18,400, according to research from Hitched. However, this figure can easily reach £30,000 for the average wedding in the UK, especially with additional costs such as hen parties, transport and honeymoons. In short, the cost of a venue, wedding outfits, flowers, catering, transport, hotel accommodation and photography all quickly adds up! 

Fortunately, there are ways brides and grooms can get financial help in the UK. Although borrowing money from family or friends is one way, many do opt for personal loans.  

 

How Much Does a Wedding Cost? 

 

Weddings, to put it simply, can become expensive very quickly. For instance, the average wedding consists of approximately 80 guests. Taking this into account, catering costs alone can cost upwards of £8,000. Likewise, the cost of food and drinks can be extremely expensive for spouses-to-be. 

Not everyone has access to large amounts of savings or family members that can assist with wedding costs. For the majority of people in the UK, borrowing money is the only way to fund a wedding. 

 

How to Pay for a Wedding 

 

As mentioned above, not all couples have access to financial aid through family members or friends. Likewise, not all couples have the means to fund a wedding alone. Luckily, personal wedding loans are an option if you require help with funding your wedding. 

Depending on the cost of the event, you may be able to consider an unsecured loan or personal loan. Whichever is most suitable for you will depend on your personal and financial situation. 

 

Can I Get a Loan for a Wedding?

 

Yes, it is possible to use a loan to fund a wedding. There are many types of loans available to borrowers that can help ease the costs of the big day. Your credit score will ultimately determine how much you can borrow and the interest rate offered.

Here are some common types of loans people in the UK use to fund weddings: 

 

Unsecured Personal Loans

 

An unsecured personal loan is simply a loan which requires no collateral (also known as security) for borrowing money. In this situation, the borrower doesn't have to offer an asset like a house or a car to borrow the money.

Borrowers with no adverse credit may be able to secure this type of personal loan up to £30,000. They have a period of between one to seven years to pay it back (repayment period). This type of loan doesn't need your home as collateral, so if you can’t keep up with repayments, you will not lose your home.

These types of loans tend to be riskier for lenders. As a result, couples may be able to borrow less than other types of loans, such as a second mortgage or homeowner loans. 

 

Secured Personal Loans

 

If you are a homeowner, then a secured personal loan might be a viable option for helping fund your big day. The typical size for this type of loan is around £45,000, which would cover the costs of a more salubrious occasion! 

Lenders in this market are looking at three main criteria points: 1) the borrower’s credit score, 2) the amount of equity in their property and 3) confirmation that they can repay the secured loan. The last point is the most important because a secured loan will be secured against your property. In the event of being unable to repay, you could risk losing your home. 

If you apply for a secured loan, you will need to select a loan term. The term of the loan can be over, say, 3 years to 25 years. In addition, you can opt to have a variable or fixed-rate loan.

It's better to repay the loan early, if you can since this reduces the overall amount of interest that you have to repay.

When comparing secured and unsecured loans, you need to check the monthly payments and representative Annual Percentage Rate of Charge (APRC) to ensure you are getting a competitive interest rate. Your credit history will have an impact on your application, and most lenders will carry out a soft search initially to see what interest rate you are likely to get. 

   

Want to Pay for a Wedding & Home Improvements? 

 

Newly-weds often buy their first homes together before the big day and, in many cases, will want to carry out home improvements. Whether this is to create more space for starting a family or to give love to their new place together, homeowner loans can help! 

A homeowner loan is a secured personal loan, which couples-to-be can use to help fund both their wedding and to cover the costs of some home improvements. A win-win! For example, you may require £30,000 for your wedding day and £20,000 to fit a new kitchen, meaning you would like to borrow at least £50,000. This may be possible via a homeowner loan. 

Before applying for a homeowner loan in this scenario, it is important to budget very carefully for any home improvements. For example, if you took out a loan of £30,000 to replace your current kitchen and found out that after you had spent the £30,000 that you still needed an oven and fridge, it would be difficult to borrow any further funds to finish the project. While second mortgage lenders do consider further advancing, they often have a policy that you can only apply for further monies once you’ve had your current loan for at least six months.

 

Can I Use a Debt Consolidation Loan to Fund My Wedding?

 

Debt consolidation loans are another type of secured personal loan for couples to consider. When funding a wedding, couples often take a detailed look at their finances. Sometimes, other major outgoing costs like home purchases, credit card repayments and other personal debts can be too difficult to manage alone. That’s where a debt consolidation loan may help.

A debt consolidation loan, in short, is a secured personal loan that combines an individual’s current debts into one single monthly repayment. This could help relieve the stress of funding the big day and allow couples to start off on the right foot financially together. 

However, debt consolidation loans are not a viable option for all borrowers. Missing repayments for such a loan can lead to worsening your credit score and, in turn, making it more difficult to raise finance in future. 

 

Are Wedding Loans a Good Idea?

 

Before borrowing any type of loan, it is important to consider the potential drawbacks. Borrowing money should not be a decision taken lightly, and couples should be aware of the risks of any type of wedding loan. 

While it might be appealing to borrow a loan, there are some points you should consider for the above wedding loans. 

 

Debt Consolidation Loan Interest Rates

 

Borrowing a wedding loan can lead to long-term debt if not repaid properly. A debt consolidation loan, moreover, may help couples to fund their big day but will require them to reduce their outgoings. Similarly, they will likely need to take out such a loan for a longer period of time which may result in paying back more interest than if they were to carry on paying their existing debts until repaid. 

Second Mortgage/Homeowner Loans Security

 

A second mortgage, also known as a homeowner loan, secured loan or second charge, requires borrowers to pledge their property as an asset. Therefore, if you were to default on the loan, the lender may repossess your property to recoup their monies. 

You must ensure your income is sufficiently comfortable to cover the monthly repayments, such as in the event of you not achieving an expected bonus or your overtime is reduced. 

It’s strongly advised that you contact a lender if you think that you may start to miss any repayments. They are more likely to want to work with you to find a solution than if you fall into arrears without speaking to them.

 

Wedding Loan Interest Rates

 

It would be advisable to seek the services of a qualified mortgage broker to make sure that you were getting the best deal available that suited your needs. The broker should compare the interest rate that is offered to you against the current APRCs on your credit cards and loans. For example, it would not make financial sense for you to consolidate loans where you are paying a very low rate of interest.

What Are the Alternatives to Wedding Loans?

 

Although wedding loans are a popular option for spouses-to-be, sometimes there are other routes couples should consider to reduce the costs of a wedding. One way to reduce the overall wedding costs and any potential amount you may borrow is by shopping around to make savings.

For example, while high-street florists are easily accessible, a small business working from a home office might be able to offer the same service at a fraction of the cost (plus, it’s always good to support small businesses!). Likewise, searching comparison sites and seeking vouchers are other ways couples can cut costs. 

 

Where to Get a Wedding Loan

 

Are you considering a wedding loan? Want to discover if you can get a wedding loan? The Second Mortgage Company can help. Our process is straightforward and provides clients with continuous assistance throughout their wedding loan journey. If you are contemplating raising funds for your wedding, we encourage you to reach out for additional guidance.

Contact The Second Mortgage Company today.