The advantages of wedding loans

Wedding loans may be able to help you make your wedding day one to remember.

Why a loan?

If you’re fortunate enough to be able to pay for a special wedding out of your own financial resources then fine.

If not, you may start to wonder if you can really have the wedding of your dreams.

It’s worth remembering that the cost of even a fairly basic wedding may run into several thousands of pounds or even tens of thousands.

The good news is that wedding loans may be able to help you ensure that your wedding (including, for example, a romantic honeymoon) is one that conforms to your plans and aspirations rather than one that comprises essentially a long list of compromises.

Loans secured to property

Wedding loans for larger sums may typically be offered on what’s called a secured basis.

That means you will need to offer the lenders, some form of guarantee that they will be able to recover some or all of their money, in the event that you default and do not repay the loan.

A classic way of providing such security (also sometimes called collateral) is to use property.

This involves, at the time you take out the loan, providing the lender with the legal right to seize and force the sale of the property concerned, in order to recover their money should you fail to repay the loan as agreed. If you keep up loan repayments, your property cannot be touched.
The nature of the property

The property you use will need to be in you name and if not, you will need any co-owners to also sign the loan documentation.

You may not need to own the property outright and a property with a mortgage may be perfectly acceptable to the lenders, however, you will need to have sufficient equity in the house to cover the loan amount.

Advantages

Secured loans typically constitute a lower risk for lenders and as a result, you may benefit from:

more attractive interest rates;

larger sums available (subject to other factors such as your income level);

easier availability if you have a less than perfect credit history record.

Using wedding loans as part of a planned start to your new married life may be an option. Of course, as with any loan, it is advisable to ensure that you are confident of your ability to meet the repayments and that the loan is used responsibly.

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