Getting married soon? If so, funding your big day may be making you worried. It’s no surprise, given that the average UK wedding costs close to £20,000!
Thankfully, funding your wedding doesn’t need to cause you too many sleepless nights!
Many lenders are comfortable with letting people borrow money for this purpose, meaning you can get your dream ceremony!
In this guide, we will walk you through what a wedding loan is and how you might be able to get one…
What is a wedding loan?
Quite simply, it is any loan that is used to fund your big day. In other words, it gives people the option to have the wedding they’ve always dreamed of.
This solution can be taken out to fund the entire event. Or, it can be used to help with funding certain aspects, such as the venue.
There are different types of funding options you can get, including both unsecured finance and secured wedding loans. Deciding which type is right for you depends on the loan size and your personal situation and preferences.
It’s important that you sit and think carefully about the options open to you, so you make the right decision for you.
What are wedding loan interest rates like?
Interest rates will vary depending on the product you choose, the lender you go with and your own personal circumstances.
Generally, the interest rates on secured loans can be lower than other types of finance, since you have used a property as security against the loan. However, this can put your property at risk of repossession if you fail to make your repayments.
In comparison, unsecured loan rates may be higher, as the risk for lenders can be greater. However, with this option you will not be putting your property at risk of repossession, as the loan is not secured against anything.
It’s important to research your options to make sure you find the cheapest deal available for your needs. If you’re uncertain about how to do this, it could be worth getting the help of a broker. With a broker they have a variety of different lenders on their panel, so they can search through a range of products to find the best option for you.
Are there wedding loans for bad credit?
If you have bad credit you might be panicking about whether you will get approved. It’s normal to feel worried in this situation, but thankfully lots of lenders are happy to let you borrow even if you don’t have a squeaky clean credit background.
This means that it is a possibility to get one of these lending options even with bad credit. However, it can be more challenging to get accepted and the options available may not be as competitive.
Having bad credit may also impact the type of loan you will be able to get. Typically, unsecured lenders are more nervous about lending to customers with complex circumstances, compared to secured lenders. For this reason, you may struggle to get approved for unsecured finance.
Are wedding loans difficult to get?
Getting a loan for a wedding can be easy, but there are some factors that can make it more challenging.
One area that can impact the process is the type of loan you choose and the provider you go with. Each provider has different products and criteria, with some being more flexible than others. Due to this, you may find it easy to get approved with one lender, but not another. This is why it’s important to make sure you understand the criteria of each provider before you apply.
Another factor that can impact your application is your own personal circumstances. For example, if you have struggled financially in the past you may find it harder to get approved compared to someone with no blemishes on their record. Some of the areas that may influence your lender’s decision include:
- Income
- Employment status
- Credit history
- Property ownership
Therefore, how easy or difficult it is to get these solutions really does depend on your specific situation.
How can you get them?
Taking out a loan for a wedding is quite straightforward.
First, you would need to speak with a lender, bank or a broker to get an idea of the loans and interest rates that are available to you.
Once you’ve found a product you’re happy with you can apply for the loan with the help of the lender, bank or broker.
What are the alternatives?
Taking out a loan can feel scary, so you may be unsure if is the right move for you. If so, there are some alternatives you might want to consider.
- Ask for help from family members – If you’re close with your family and are comfortable asking for their help, it could be worth seeing if you could borrow from them. Not every family will be in the right financial position to help, but if they are it could be a good way to avoid taking out a loan.
- Save, Save, Save – You are completely in control of the event, which means you pick the date you want to get married. If you’re worried about funding the event, you could push the date further into the future to give you more time to save. Sticking to a strict budget over this time will be key, but in the end it may mean you have funded the occasion all on your own!
Summary
Weddings are expensive, so you may need help funding it. Luckily, as this guide has shown there are lots of solutions available that can help you. It’s always important to do your research carefully first to make sure you get the right solution for your needs.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
