When it comes to getting married, most couples in the UK want to make sure that everything is perfect for their wedding. From the venue to the food, from the flowers to the music, there are a lot of details to think about and a lot of expenses to consider.
If you’re one of those couples who wants your wedding day to be absolutely perfect, you may be wondering how you’re going to afford it all. You may want to get a wedding loan. Thankfully, there are several options available for UK couples.
UK Wedding Loan Options to Help Spread the Cost
If you want to get a wedding loan, it’s important to note that there are a few different options available in the UK market today.
A Personal Loan
First, you can seek out a personal loan. Typically with fixed interest rates, a personal loan can be used for any purpose, including to fund your wedding.
If you want to get a loan, there are also specialist wedding loans available. As the name suggests, a wedding loan is designed specifically for funding your wedding. This type of loan usually has slightly lower interest rates than personal loans.
Finally, there are credit cards, which can also be used to finance a wedding but typically have higher interest rates than either personal or specialist wedding loans. Much like a loan, you are required to pay it back in a timely manner.
What Loan Option Is Best for You?
So, if you get a loan, which type is right for you? That will depend on several factors, including your financial situation, your credit score, and how much you need to borrow.
What’s Your Credit Score?
If you have good credit history, and a good credit score to match, and can afford to make regular repayments, then a personal or specialist wedding loan could be a good option.
However, if you need to borrow a larger amount or have a less-than-perfect credit score, then a credit card might be a better choice. Whichever option you choose, make sure you compare the interest rate and any early repayment fee before making a decision.
Top 3 Wedding Loan Options
For UK couples, there are several options out there when you apply for a loan. Here are the top three wedding loans on the market.
If you’re looking to borrow between £7,500 and £15,000 for 12 months to 5 years, Santander offers a representative APR of 3.40%. This offer is available to both new and existing customers.
2. Sainsbury’s Bank
Sainsbury’s Bank offers a great APR on personal loans, but you must have held a Nectar card for at least six months to be eligible. If you don’t have a Nectar card, the representative rate is 4.5%.
MBNA offers loans of between £7,500 and £25,000 at an affordable 4.80% interest rate (representative). You may also be eligible for a payment holiday of up to 2 months every year.
How Do You Know if You’re Eligible?
Many couples dream of a lavish wedding, but the cost of a wedding can easily surpass £30,000. For couples who don’t have the financial resources to cover the cost of a wedding, taking out a loan may seem like the only option. However, before you take out a wedding loan, it’s important to understand the eligibility requirements and interest rates.
The interest rate on a wedding loan will vary depending on the lender and your credit score. However, you can expect to pay somewhere between 5-10% interest on the loan.
Most lenders will require that you have good credit in order to qualify for a loan.
Furthermore, most loans will require that you have a steady income in order to make the monthly payments.
Taking out a loan for your wedding is a big decision. Be sure to do your research and understand the terms of the loan before you sign on the dotted line.
Tips to Help Lower the Cost of Your Wedding
One of the biggest expenses for any wedding is the venue. If you’re looking to reduce your costs, consider getting married at a time of year when venues are less in demand. You may also be able to negotiate a better rate if you’re willing to book your event during an off-peak time like a weekday.
Limit Your Guest List
Another way to save money is to limit your guest list. The more people you invite, the more you’ll have to spend on food and drink. If you’re looking to keep your costs down, it’s worth considering a smaller guest list.
Shop Around if You Apply for a Loan
Finally, if you’re hoping to get approved for a loan to help finance your wedding, be sure to shop around and compare rates from multiple lenders. By doing so, you can ensure that you get the best deal possible.
Many banks and lenders offer special rates for weddings, so it is worth checking with several different providers to see who can offer the best deal. It is important to consider the repayment terms of the loan, as some loans may have higher interest rates if you do not repay them within a certain timeframe.
Skip the Personal Loan, Try Hitchd Instead
You can actually use a wedding registry like Hitchd.com to fund your wedding before the big day comes around. With Hitchd, you can add any item to your registry, from the dress to the flowers, and then set a “target” amount. UK couples love using Hitchd because guests can then contribute funds towards your target, which you can use to pay for your wedding costs.
There are a few different types of wedding loans available in the UK market, each with their own eligibility requirements and interest rates. By doing your research and knowing what to look for, you can get the best deal on your loan and make sure your big day is everything you’ve ever dreamed of. There are a few other ways to finance your wedding that don’t involve taking out a loan, so be sure to explore all of your options before making any decisions.
If you are looking for other options, try Hitchd as an option. It won’t affect your credit score, there are no monthly repayments, and it fits nearly all personal circumstances.