Buying the knot: wedding loans soar as Brits borrow to fund big day

Buying the knot
  • Average wedding loan request was over £9,000 in January – an 11.4 per cent increase on the same month last year
  • Marriage loans are cheaper than a mortgage for those living in North East of England and Scotland
  • Percentage of wedding loan enquirers who own their own home at its lowest level since January 2016

With couples starting to plan their nuptials following the traditional engagement spike during the Christmas break, new data from MoneySuperMarket today reveals the amount requested for wedding loans rose to £9,206 in January 2018 – a year on year increase of over 11 per cent compared to January 2017 (£8,261) and 17 per cent compared to the same month in 2016 (£7,812).

The latest wedding loan applications data reveals that January 2018 saw 92 per cent more requests than December 2017 and 59 per cent more than November 2017, suggesting that Christmas remains one of the most popular times of year for people to pop the question. Those in their mid-to-late twenties are the biggest age group searching for wedding loans.

The leading price comparison website has also matched the thousands of wedding loans figures against another great life expense – purchasing a house – to reveal a huge 60 per cent of Brits taking out a wedding loan in January don’t own their own property. This figure is at its biggest level for two years, implying Brits are increasingly prioritising tying the knot over getting on the property ladder.

The findings, based on over 160,000 wedding loan applications on MoneySuperMarket during the last two years, show that loved-up Londoners borrow most for the big day, applying for £10,774 compared to the national average of £8,4622.

The high proportion of non-homeowners taking out a wedding loan in London could be a reflection of the city’s staggering house prices. With an average property costing over £480,000[1], Londoners have to fork out an astonishing 138 per cent of their annual salary for a house deposit, compared to just 33 per cent of their income for a wedding loan3.

Sally Francis, money expert at MoneySuperMarket, commented: “As we’ve seen, December is still a popular month to get engaged, so it makes sense that requests for wedding loans subsequently soar in January. Taking this data and mapping it against mortgages is particularly interesting. While both come with a level of commitment, it’s interesting to see that a significant number of Brits - particularly millennials - are prioritising marriage over buying a home, as in reality doing both is often unaffordable.

“Although Stamp Duty has recently been removed for first time buyers on properties up to £300,000 which certainly helps, there’s a lot of speculation that mortgage rates will not be getting any cheaper. With staggering house prices showing no signs of going down and wedding loans also on the rise, it’s more important than ever to compare rates and find the best quote when taking out a loan of any kind.”

For more information and help shopping around for the best quotes for mortgages, wedding loans and more visit MoneySuperMarket.

 

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1Based on ONS House Price Index September 2017 (latest issue)

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