Loans for weddings
With the average cost of a wedding in the UK said to be almost £16,000. you might need some help paying for your big day. With this in mind, a personal loan could assist you covering some or all of the following costs upfront:
- Wedding dress and bridesmaids’ dresses
- Church or registry office fee
- Venue hire
- Evening reception
Whether you’re planning a big event, an intimate ceremony or considering a wedding abroad, a personal loan could offer peace of mind and allow you to take care of all the important requirements for the day.
Can you afford a loan?
Before applying you should make sure you can afford to make the repayments each month. Making a list of your incomings and outgoings will allow you to see how much money you and your partner have to spare and will help you budget. Other elements to consider are:
- Interest rate and charges (APR)
- Length of the loan term
- Penalties for missed payments
- Early repayment options
Being approved for a loan will depend on a variety of factors including your current financial situation, your employment status and credit history. It’s best to check your own credit rating before applying for a loan as multiple applications and refusals could signal financial trouble or fraud. Experian, Equifax and Call Credit are three companies in the UK that can provide you with a credit report.
Calculating the interest
If your current circumstances mean you can afford a loan for a wedding, you should determine the amount of interest you will pay back over the agreed term. Loans calculators are available from many lenders and will help you work this out. By entering the original loan amount (principal), the interest rate and the payback period, you will be able to see how much interest you’ll pay and, therefore, how much you will repay in total. Bear in mind, you are only charged interest on your outstanding balance. For example, a £10,000 loan with a 5% APR and a 1 year payback term will accrue 272.89 in interest, not £500 as you may initially think.
Interest rates can vary significantly from lender to lender so make sure to shop around to ensure you get the best rate possible. Services such as Which? can help you compare different loans quickly and easily.
For further information, see our guide to personal loans.