What is a secured wedding loan?
A secured wedding loan is a type of funding solution that helps you cover your wedding expenses. This could be for any reason, such as paying for the venue, catering, wedding attire, flowers and more.
With this solution, you use a property you own as security against the loan. By doing this, the lender is given more reassurance that you will pay back the loan, as they have the power to repossess your property if you don’t.
By doing this it can help you unlock larger loan amounts and potentially lower interest rates than an unsecured loan.
As with any finance option, secured wedding loans come with a risk. You need to make sure you can afford the monthly payments easily before committing to any borrowing.
For more information on wedding loans, check out ‘Our guide to wedding loans’.
How much will I need to borrow for my wedding?
Deciding on the exact amount you need to borrow for your wedding depends on many factors. This includes your wedding plans, preferences, and budget. To estimate the amount you may need to borrow, follow these steps:
- Create a wedding budget:
Start by creating a budget that includes the most important elements of your wedding. This could include the venue, food, outfits, decorations, photography, and other expenses.
- Research wedding costs:
You could read blogs, watch videos online or talk to friends and family about how much other people’s weddings cost. Make sure you find people with similar weddings to your vision to get the closest guess.
- Prioritise your expenses
Rank the elements that are most important to you and your partner. Allocate more of your budget to the most important elements, while thinking where you can save on costs for less critical items.
- Include savings:
Factor in any savings you plan to put towards your wedding. These contributions will reduce the total amount you need to borrow.
- Explore other funding sources:
If you can, check if family or friends can help with the costs, as this may reduce how much you need to borrow.
Once you have a good idea of your budget and know how much you can personally contribute, it will give you a clear idea of the amount you need to borrow. After this, you can explore different lenders and loan options.
Why are weddings so expensive?
Weddings are notorious for being expensive. They are often one of the first big expenses a couple may tackle together.
So what causes a wedding to cost so much? Here are a few ways wedding expenses can start to add up:
Venue and catering:
Wedding venues and food services often cost the most. Couples aim to create a memorable experience for themselves and their guests, so they often look for unique locations with the best culinary experiences. But, the choice of venue and the number of guests can substantially impact the overall cost.
The guest count:
As the guest count rises, so do the expenses. A larger guest list means increased costs for catering, seating arrangements, invites, and other logistics. If you’re looking to cut costs, it’s a good idea to monitor the guest list carefully and try to keep it lower if you can.
Wedding attire:
Clothing, including the bride's dress, groom's suit and outfits for the wedding party, add to the overall cost. The wish for elegance and style can result in higher costs for clothing and accessories.
Photography and videography:
Hiring photographers and videographers is important for couples trying to preserve the memories of their day. However, quality services come with a price tag, adding to the expenses.
These are just some of the wedding costs that can make your big day expensive. However, with careful planning, you can bring down these costs and save money on your wedding. If you’d like to find out how to do this, read our guide ‘how to save money on your wedding’.
The benefits of secured wedding loans
Lower interest rates:
Secured loans can often come with lower interest rates. This is because there is a property used as security against the loan, which reassures the lender.
Higher loan amounts:
By using a property to secure the loan, you can also often access higher loan amounts. Therefore, if your wedding is going to be very expensive, you may be able to cover the costs better using this option.
The risks of secured wedding loans
Risk to your home:
Failing to repay the loan can result in your home being repossessed. This can make it a risky option, so you need to think carefully about whether it is affordable for you.
Impact on credit score:
If you default on your loan, it can severely damage your credit score, making it challenging to get finance in the future.
How do I apply for a secured wedding loan?
If you’re looking for a secured wedding loan, we can help you get started. For a free, no obligation quote, you can:
Call us on 0800 032 4646 or use our online form above to enquire.
One of our expert team will assess your application and try to find a suitable solution based on your needs.
