As we all know, organising a wedding is an expensive business! It may have once been traditional for the father of the bride to pick up the cheque, but times have changed. An increasing number of couples choose to pay for the cost of their wedding themselves. Not everyone will be able to cover the full cost of their wedding with their savings, so a wedding loan offers couples the option of borrowing money to organise their special day.
A wedding loan gives borrowers the option of spreading the cost of the big day over a period of time of your choosing. Rather than having a number of debts to repay before and after the wedding, borrowers will only need to deal with one financial body on a monthly basis to make your repayments.
The lowest wedding loans on the market tend to besecuredloans. A secured wedding loan is a sum of money lent by a financial institution that has been secured against the property of the borrower. By securing your property, the lending body has a way of guaranteeing that their money will be repaid to them. This is usually the borrower's home, or their car. A secured loan gives people the opportunity to borrow a large sum of money over a long period of time.
If you do not own your own home, then there is the option of anunsecuredwedding loan. An unsecured personal loan allows customers to borrow a sum of money without giving the lender the security of your home against the loan, and don't require any surety for the loan.
Whatever deal you decide to go for on your wedding loan, it pays to budget your finances for your day, and resist the temptation of borrowing more than you need, or more than you can afford to repay.
Secured loans tend to come with a lower APR (Annual Percentage Rate) over a longer period, which could mean lower monthly repayments, and free up your finances. The longer repayment schedule will mean that you may remain in debt longer than with other finance products. When looking for a secured wedding loan, look at the TAR (Total Amount Repayable) of your loan - longer repayment schedules may give you a lower APR, but your big day may cost you more in the long-run. As with any loan product, it pays to shop around for the best deal on wedding loans as there are offered by a number of lenders.
As with any loan, a wedding loan is not without it risks. If you fail to keep up the payments on your wedding loan, you could risk being taken to court by the lender. Your property could still be at risk as a result of your unpaid debts because your lender could force you to sell your property to repay your debt. Failure to keep up repayments could also lead to you incurring CCJs (County Court Judgment). A CCJ could order you to pay off your loan in smaller monthly installments and will affect your credit rating.
Our trained expert advisers have access to the UK’s leading lenders and using their knowledge and skills will place you with the most suitable leader and product for your needs.