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Unsecured Personal Loan for Wedding: A Good Idea?

Personal Loans for Wedding | UK | LoanTube

Out of all events in our lives, weddings hold a special place. Most people want to celebrate a brand new chapter of their life in a grand way. But a grand wedding comes with a hefty price tag. If you are planning to tie the knot soon, then finances must be on the top of your list of concerns. A lot of people in the UK take personal loans for a wedding to cover the expenses. Let us understand whether borrowing a loan is a good idea.

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Representative APR
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Loan Amount

£4000 -

£20000

Norwich Trust

Loan Term

1 -

10 years

4.8/5

4.8/5

Representative APR

31.90%

Minimum Age

21 Years

Minimum Income

£2000 per month

Representative Example: £12,000 over 66 months, 31.9% APR fixed. Monthly payment £358.22 Annual interest rate 28.01% fixed. Interest payable £11,642.52. Total repayable £23,642.52.

4.8/5

4.8/5

Norwich Trust

Loan Amount

£4000 -

£20000

Loan Term

1 -

10 years

Representative APR

31.90%

Minimum Age

21 Years

Minimum Income

£2000 per month

Representative Example: £12,000 over 66 months, 31.9% APR fixed. Monthly payment £358.22 Annual interest rate 28.01% fixed. Interest payable £11,642.52. Total repayable £23,642.52.

Loan Amount

£5000 -

£100000

Evolution Money Loans

Loan Term

1 -

20 years

4.5/5

4.5/5

Representative APR

28.96%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00

4.5/5

4.5/5

Evolution Money Loans

Loan Amount

£5000 -

£100000

Loan Term

1 -

20 years

Representative APR

28.96%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00

Loan Amount

£1000 -

£10000

1Plus1 Guarantor Loans

Loan Term

1 -

5 years

4.4/5

4.4/5

Representative APR

39.90%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Borrowing £3000 over 36 months with a representative APR of 39.9% (variable),the amount payable would be £134.21 a month,with a total cost of credit of £1831.56 and a total amount payable of £4831.56.

4.4/5

4.4/5

1Plus1 Guarantor Loans

Loan Amount

£1000 -

£10000

Loan Term

1 -

5 years

Representative APR

39.90%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Borrowing £3000 over 36 months with a representative APR of 39.9% (variable),the amount payable would be £134.21 a month,with a total cost of credit of £1831.56 and a total amount payable of £4831.56.

What is a wedding loan?

A wedding loan is an unsecured personal loan that you may borrow for utilizing the funds for your nuptials. You do not have to provide any security or collateral. That means your assets are not at any risk of being possessed by the lender for non-repayment. Also, you can spread the cost of the repayment over several months. It will ease down the financial burden that you may have to face after getting hitched.

How much does the average wedding cost in the UK – 2020?

The average cost of a wedding in the UK is £30,000. However, couples can also get married by paying a mere amount of £50 at a register office. The overall cost of a wedding largely depends on the type of wedding the couple wants. Some may want to say “I Do” in a grand and luxurious way with all their friends, and families. While some may want to keep it private and well-within their closed ones. Here’s the breakup of the costs associated with a wedding spread over different ranges.

Wedding Costs Lower Range Median Upper Range
Wedding & Reception Venue £500 £5,500 £10,000
Catering (Food) £1,500 £4,000 £8,000
Catering (Drink) £400 £1,600 £5,000
Dress £350 £1,300 £3,000
Photography & Video £500 £2,500 £4,000
Entertainment £200 £1,000 £2,000
Flowers £250 £1,000 £2,000
Engagement & Wedding Rings £250 £3,000 £10,000
Cake £200 £500 £2,000
Transportation £0 £500 £1,500
Stationary £0 £500 £350
Attendant’s Outfits £0 £350 £800
Groom’s Suit £50 £450 £800
Mother-of-the-bride Outfit £0 £200 £400
Hair and Makeup £80 £500 £1,00
Headdress and/or Veil £30 £150 £250
Shoes £50 £200 £400
Other Wedding Jewelry £40 £150 £500
Gifts £0 £250 £1,000
Ceremony Fees £50 £200 £300
Decoration £175 £500 £2,500
Honeymoon £1,250 £4,500 £10,000
Hen Party £200 £470 £800
Stag Party £200 £550 £1,000
Total Wedding Cost UK £6,275 £29,870 £67,600
Source: Nimblefins 

What is the best way to pay for a wedding?

Wedding is a once in a lifetime event and thus, we strive it to make it perfect and memorable. Here are a few ways to pay for a wedding:

1. Use your savings

Consider using your savings for the event rather than borrowing money. This will lower your burden to a great extent. But before you jump in to utilise your saving pot – it is important to understand what were you saving this money for? Were you saving it for a deposit for your new home? If yes, then consider other ways to finance your big day.

2. Credit cards

Using a credit card to pay for your wedding expenses is another good financing method as long as you pay them off in full and on time. It will be much better if you have a 0% interest credit card. With such cards, you will get a period to repay the amount you have used without any added interest. But remember, if you miss that certain timeframe, you will have to repay the credit card company the amount you owe along with the interest and other charges.

3. Personal loans

Unsecured personal loans for a wedding are a great way to cover the shortfall. You could borrow the money that you need at a certain rate of interest. You do not have to worry about your home or assets as a personal loan doesn’t require any collateral. The total cost of a wedding loan depends on the APR that you get.

4. Friends & family

It is obvious that your loved ones will gift something on your special day. But if you think you can do without those gifts, ask your friends and family to crowdfund your wedding. What can be a more memorable gift than this?

How much can you borrow for your wedding?

The amount that you can borrow for your wedding depends on the following factors:

  • The relationship you share with your credit i.e., your credit score
  • How much you earn every month and also your expenses
  • Your current employment status

These are the basic things that lenders consider while assessing your profile to fix an amount that you can borrow. Do not borrow an amount that you cannot afford to repay. Discuss your “loan borrowing plan” with your partner as some people never give in to the idea of starting their new life under debt.

How do I apply for a wedding loan?

Follow these 2 simple steps to apply for a wedding loan in the UK:

1. Prepare your budget

Calculate the amount that you need. List down everything that comes to your mind and determine how much amount will be enough for covering the costs. If you are looking for ways to control your wedding budget, then cut down on spendings that you can easily do without.

2. Compare Loans

Once you know how much you want to borrow, it will become easier for you to compare loans. Start by comparing the APRs and interest rates that you receive from various lenders. Make a list and skim through it. Choose the lender that offers you the lowest APR. Explore and shop around before you make your decision to get the best rate available.

Undoubtedly, a wedding is a special occasion that gets etched in our memories for the lifetime. However, do not get caught up too much with the emotions. Plan a wedding according to your financial capabilities to have a debt-free life after you say “I DO” under the altar.

Representative 79.5% APR

Warning: Late repayment can cause you serious money problems. For more information, go to moneyhelper.org.uk

Credit subject to status & affordability assessment by Lenders.

LoanTube is a credit broker and not a lender.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.

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Representative APR Example

The rate you are offered will depend on your individual circumstances.

Representative APR Example: On an assumed loan amount of £1,000 over 18 months. Rate of interest 59.97% per annum (fixed). Representative 79.5% APR. Total amount payable £1,554.10 of which £554.10 is interest. 17 equal monthly repayments of £86.09, and the final month’s payment of £90.57.

Some of the offered loans might be classed as High Cost Short Term Loans. APR rate starts from 18.22%. The maximum APR rate is 1721%, but you will get a personalised rate tailored to you. The minimum repayment term is 3 months, the maximum repayment term is 7 years. The minimum loan amount is £250 and the maximum loan amount is £35000.

Warning: Late repayment can cause you serious money problems. For more information, go to moneyhelper.org.uk

Credit subject to status & affordability assessment by Lenders.

LoanTube is a credit broker and not a lender.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.

Not all borrowers will qualify for a loan. The operator of this website does not engage in any direct consumer lending, we simply provide you a FREE loan brokering service. This means LoanTube does not charge customers a fee for using its introducer services, but it receives a commission from lenders or other brokers if a customer enters into a consumer credit agreement with them following an introduction by LoanTube.

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