Wedding loans

Borrowing to fund a wedding means you’ll be incurring debt that you’ll have to pay off over the months that follow.

But weddings can be an expensive one-off payment, and it may take you longer than you want to save up – particularly if you have a fixed date in mind.

Provided you budget sensibly, don’t overstretch yourself and can keep up with repayments, wedding finance can be used as part of the planning for the big day.

Whether you’ll be accepted for a wedding loan will depend on a variety of factors, including how much you ask for, whether you can meet the repayments, your credit score and the loan provider’s own attitude to risk.

If you cannot get a loan for as much as you want, you may have to settle for slightly less and revise your plans, or seek finance in other ways.

Yes, although you'll need to compare secured loans (also known as homeowner loans) to borrow against your property.

Be warned that if you fail to keep up with repayments, your lender can sell your property to recoup the cost of the loan.

Once your loan is approved, you’ll receive the money and are free to use it how you wish.

If your wedding gets postponed or cancelled, you’ll still need to adhere to the terms of the loan and make the repayments on time. If you decide you don’t need the money anymore, you’ll be able to pay the loan off early, but take note of any early repayment charges.

In every case, once the initial cooling off period has elapsed, you are likely to pay back more than you have borrowed.

An unsecured loan – often called a personal loan – is one that is granted without the customer having to put down any security, such as their house or car. This doesn’t mean the borrower can default on the loan with impunity.

If you miss repayments, you’re likely to be hit with extra charges and interest and you could seriously damage your credit rating, making borrowing much harder in the future.

Most loans are structured so you make monthly repayments until the loan is paid off. You can usually decide on a date that suits you best. Immediately after payday, for example, is often a popular choice so borrowers are confident they can meet their direct debit payments.

The length of loans differs from deal to deal, but common terms range from two to five years. You can often reduce the monthly payments by extending the term of the loan, but this typically means you’ll end up paying more overall in interest.

It will depend on the deal you’re approved for. The good news is that it is easy to compare deals from across the market in the UK with MoneySuperMarket, so you can quickly see what current rates are on offer.  

Be aware that the lowest advertised rates are not offered to all potential borrowers and are generally reserved for those with the best credit scores.

No. Any reputable loan provider will first run a credit check on your finances to give them confidence that you will be able to repay the loan on time every month. This is why it’s so important to keep your credit score as high as it can be.

No. Once you have been approved for the loan and receive the money, you can use it for whatever purpose you like. It could be useful to draw up a budget to make sure you only apply for the amount you’ll need because the more you borrow, the more you’ll have to repay in interest.

Yes, you can instruct the loan provider to pay the money into a joint account. It’s worth noting that if you are the person who has been approved for the loan, you are also responsible for paying it off - no matter who ends up spending the money.