Homeowner loans for weddings
Can I use a homeowner loan to cover wedding costs?
We explore whether a homeowner loan could help you plan your big day.
It’s no secret that weddings can be incredibly expensive. If wedding bells are on the horizon for you, it’s not always easy to cover the entire cost with savings alone.
In this guide, we’ll take a look at whether a homeowner loan could help you to finance your wedding.
Loans for weddings
Many people talk about using a loan for a wedding, and this is sometimes referred to as a ‘wedding loan’. In reality, a wedding loan is no different from any other kind of loan you might receive.
For example, you could apply for a personal or a homeowner loan to help cover wedding costs. Whatever loan you choose, it’s always important to make sure you’re not borrowing any more than what you can afford.
To work this out, you could create a wedding budget to see the amount you’ll need to make your big day happen. If you’re planning a wedding, you’ll know there are lots of things to consider. It helps to jot down everything you’ll need to cover and research some prices. Common wedding expenses include:
- Photographer
- Catering
- A cake
- Flowers
- A wedding dress
- Suits
- Venue hire
If the total cost is well over what you can afford, it could be worth rethinking your options or dedicating more time to build up savings.
A bit like getting married, taking out a loan for a wedding isn’t a decision you should make lightly. We consider how spreading the cost of your wedding could affect you and your finances.
What are the benefits of using a wedding loan?
Aside from the obvious perk of helping you cover the cost, taking out a wedding loan could benefit you in a number of ways:
- Spread the cost: with a loan, you could spread the cost of your wedding into affordable repayments. The longer you spread the cost, the smaller your monthly repayments – though this will mean paying more interest in total.
- Receive the money upfront: it can take years and years to save for your big day. While that’s not always a problem, you might want to get married in the near future. A loan could help you tie the knot sooner, rather than later.
What are the negatives of using a wedding loan?
Taking out a loan to cover wedding costs could potentially have some downsides too. Before you look into wedding loans, it’s important to weigh up the negatives against the positives.
- Limited flexibility: after you receive the funds upfront, you’ll be tied to fixed repayments – even if your wedding plans change. For example, if your wedding is postponed or cancelled, you’ll still need to stick to your repayments.
- Lengthy repayment terms: if you’ve spread the cost of your wedding, you could be making repayments long after the big day. This could make it harder to plan for other things in the future.
- Interest rates: using a loan to cover your wedding day will always come at a cost. Unlike savings or an interest-free credit card, you’ll pay interest towards a loan.
Can I use a homeowner loan to cover a wedding?
With homeowner loans, you can use the money for almost any purpose. This could include helping you cover any wedding costs.
A homeowner loan could be a good option if you have a bad credit score and you’re not eligible for a personal loan or credit card. However, it’s important to remember that you risk losing your home if you can’t repay the loan in full.
If you’re a homeowner, you could borrow between £5,000 and £50,000 with Evolution Money. We’ll offer you a personalised homeowner loan quote that suits your credit score.
With our flexible loan terms, you could choose to spread the cost over a timeframe that works for you and your finances. So whether you’re planning your big day or something else entirely, speak with our friendly team today to see how we could help.
For a typical loan of £30,000.00 over 120 months with a variable interest rate of 19.56% per annum, your monthly repayments would be £598.34.
Including a Product Fee of £2,400.00 (8% of the loan amount) and a Lending Fee of £807.00, the total amount repayable is £71,800.20.
Annual Interest Rates ranging from 11.88% to 29.38% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.
Think carefully before securing debts against your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
