With weddings costing an average of £20,000 in 2019, knowing how to finance one can be a struggle. You want to enjoy your own or your loved one’s special day without worrying about money. So, you’re probably wondering: can you take out a loan for a wedding.
Loans for weddings with low interest are perfect for those wondering how to finance a wedding.
There are many great options out there for anyone trying to work around a wedding budget. Whether you’re the person getting married wondering how to finance your wedding, or you’re a parent trying to get the most out of the day, wedding loans with low interest may be the right choice for you.
Keep reading to learn the best options for those thinking of applying for a loan to finance a wedding.
Do people use loans for weddings?
Yes, you can use a loan to spread the cost of your wedding. Wedding loans are usually unsecured personal loans. Moreover, they can fund your entire wedding, or just a small part such as the venue, dress or flowers.
Paying for your wedding can be a big expense. Especially with all the wedding extras available now, the costs can rack up – regardless of personal circumstances. So, say you don’t have the cash to pay for your big day upfront. Instead, you can think about taking out a loan to help make paying for your wedding more manageable.
Personal unsecured wedding loans
Personal unsecured wedding loans typically range from £500 to £35,000 which you can repay over one to seven years. The APR lenders offer you on your wedding loan will depend on your credit history. If you have a strong history of making credit repayments on time, the APR lenders offer will likely be lower. If not, you may be offered a high APR.
When deciding if a wedding loan is right for you and your partner, make sure that you can comfortably afford the monthly repayments. You could also do a bit of research to find out if you can save money on your wedding elsewhere. That way, you can simply borrow a smaller amount.
So, who can you ask for a loan for a wedding?
If you’re in a position to do so, you may be able to ask your family for help with your wedding costs. Asking family will allow you to borrow a fixed amount that you can repay over time, without the added interest.
If family isn’t an option, then a traditional personal loan lender is your next port of call. Here at Aro, we can help you quickly and easily check your eligibility with over 40 UK lenders in just a few minutes. Our search won’t harm your credit score, which means you can shop around and properly think about whether a wedding loan is the right option for you before committing to a decision.
Want to find out your wedding loan options? Enter your details now and we’ll give you a quick online decision.
Can I remortgage to pay for a wedding?
Remortgaging to release equity may be an option for you if you have enough equity in your home to do so. However, there are pros and cons to releasing equity from your home, whatever the purpose. Here’s a quick run through of what you’ll want to consider before borrowing more against your home.
Advantages of remortgaging to release equity
- You can access funds tied up in your home.
- You won’t have additional loan repayments to keep track of on top of your mortgage repayments.
- If your property has increased in value, releasing equity may not significantly impact your LTV (loan-to-value ratio).
- You could potentially switch to a better rate during the remortgage and lower your monthly repayments.
Disadvantages of remortgaging to release equity
- If you release equity and your property falls in value, you could go into negative equity (i.e. the amount you owe your mortgage provider is more than what the property is worth).
- If you remortgage and are borrowing more, it is likely that your monthly repayments will increase.
- Lenders secure this type of loan against your home. This means that your home could be repossessed if you can’t keep up the repayments on your mortgage.
- If you’re still in a fixed-rate period, you may have to pay a big Early Repayment Charge to remortgage before it ends.
If you do feel that remortgaging to pay for your wedding is the right option for you, speak to a mortgage adviser. They will be able to give you tailored advice on your mortgage options and whether it is a good idea for you.
Why might you not want to take out a loan for a wedding?
One of the key things to think about when taking out a loan for a wedding is the monthly repayments. While they can be excellent for spreading the cost and making funding your big day more manageable, it’s essential that you’re comfortable that you can afford them in your monthly budget.
Here’s a quick summary of the main considerations before taking out a wedding loan:
- Missing a monthly repayment could negatively impact your credit score and reduce the chances of you accessing credit in the future.
- If your circumstances change, you’ll still need to repay the loan.
- If you take out a joint loan, you’ll both be individually responsible for the repayments, regardless of your circumstances.
Is there an alternative way to finance your wedding?
You may face the temptation to consider a credit card to fund your wedding. But while this is one option, it can lead to much higher interest rates than normal loan repayments.
Depending on the loan amount you’re looking for, a credit card could work for smaller payments. But consider for a moment whether you plan to finance your entire wedding. If you are, you may find that the credit limit you’re offered on a credit card is much lower than you would hope for.
If it’s just one element of your wedding you’re hoping to fund however, a 0% purchase card could be a good option. A 0% purchase card comes with an initial 0% interest period for a fixed amount of time. You can then spread the cost of a big purchase across the 0% period without paying interest. Just make sure you repay the entire amount before the 0% period ends, or the card’s usual APR will apply.
Even if you have money saved up to put towards your wedding, spreading the cost with a loan could allow you to keep those savings for longer. This means that you’ll have more of a financial buffer should your circumstances change in the future.
Ask yourself: can you take a loan for a wedding? Should you?
The joy and happiness of a wedding shouldn’t be overshadowed by worries about money. Sometimes the best way to get the most out of your big day is to spread the cost with a convenient monthly repayment loan. For others, it may be to wait a little longer and save up. So, if you’re still asking “can you take a loan for a wedding?” The answer really depends on you and your circumstances.
Whether you’re eligible for wedding loans with low interest will depend on your credit history and finances. If you have hit a few bumps in the road with your credit history however, there may still be wedding loan options out there for you. You just may need to accept a higher APR loan or add a guarantor to your application. Now know how to finance your wedding? For more information on wedding loan options, have a read through our wedding loans page. You’ll get all the details you need to help you make the best decision for your wedding day.