Extramile Finance

Congratulations on your wedding! It’s time to plan your big day. It includes paying for the wedding itself. You must be imagining the best wedding dress and rolling up to your perfect venue in that jazz. However, the finances amaze you quickly as you think about picking up that perfect dress.  You may not be ready for the expenses that await the big day. 

For many, taking out a loan is the realistic way to bring their dream wedding to life. According to a survey conducted by Pepper Money, a third of couples (31%) planning to marry in 2027 expect to use funds for their wedding. This helps you spread the cost of the occasion into easy and manageable monthly instalments.

It is ideal for those with limited savings, income, and financial flexibility. Counter short-term and emergency wedding requirements with a loan.

How much can you expect to spend on a wedding on average in 2025?

The average cost of a wedding in the UK in 2025 may be £20,822-£25,625. This cost may rise to £26,583 after factoring in the engagement ring and honeymoon.  Thus, the actual cost of a wedding depends on the wedding venue, wedding ring, honeymoon destination, number of guests, and other personal preferences.

What is the most expensive part of weddings in the UK?

The most expensive parts of a wedding are the venue and catering. These aspects cover a large portion of the wedding budget. Other costly areas include wedding dress, attire, photography, videography, engagement, and the wedding ring.

Here is a sample of how to prepare a wedding budget.

What are the most common reasons for considering a wedding loan?

The most common reasons for considering a wedding loan in the UK are to cover the rising cost of the event immediately and get flexibility to pay the dues later.

 According to Ryan McGrath, the director of Second Charge mortgages at Pepper Money, “the shift away from traditional sources reflects broader economic challenges. With wages lagging inflation, couples are finding it challenging to save enough for a wedding through traditional means.”

He further states that “as daily expenses eat into potential savings, loans are becoming more attractive and essential options for covering one-time expenses like weddings.”

 Here are other common reasons people consider a wedding loan:

• Timing problems

Most wedding event planners, suppliers, and venue providers ask for advance payments ahead of the wedding date. Thus, a wedding loan provides the flexibility to counter the needs immediately.

You can even get these personal loans from a direct lender for bad credit scores. It helps you get access to the funds to book essentials and fetch them at discounted prices. It is regardless of how much you have accumulated in savings.

• Avoiding high-interest debts

No one wants to witness an elongated bill after the wedding. It is time to explore the world with your better half instead of counting bills.

Thus, most individuals check wedding loans to remain free from the high-interest debts like credit cards and overdrafts. Wedding loans offer a cheaper and flexible alternative to recurring credit facilities.

• Finance “dream wedding” essentials

You can use the loan to pay for the dream wedding additions. For example, if you want a Cinderella-type entry down the aisle, you can re-create the essence. It is expensive, but you can finance the need. It helps you live the wedding dream that you cherish for the years to come.

• Flexibility of usage

The best part about using a wedding loan is that you don’t need to restrict the use. You can tap it for any need related to marriage without worries.

It helps you finance the venue, catering, photography, and even small aspects like buying more chairs, resizing the wedding gown, or including more delectable dishes. It makes it easier for individuals to counter any emergency costs that may arise out of nowhere.

• Ability to budget and pay

Fixed repayments or monthly instalments give borrowers the upper hand to pay the dues easily. It allows them to set direct debits and plan payments according to their comfort. You know how much you must pay each month. It helps with budgeting and staying on top of your payments.

What drawbacks should you be aware of while getting a wedding loan?

A wedding loan offers multiple advantages, like spreading the cost of the wedding, paying later, and fixed repayments. However, you must know the drawbacks too to make the right decision. Here are some drawbacks of a wedding loan:

• Long-term debt commitment

Taking a wedding loan is indeed a long-term commitment. Most individuals borrow for a term of 5 years, with 7 years being the maximum term you can borrow for. It requires you to repay the payments consistently until the loan term. Thus, it may affect other life goals and expenses.

However, if seeking a long-term loan for bad credit and no guarantor, check early repayment possibilities. Most loan companies allow one if you have been regular with the payments. It helps you save money on interest and overall payments. However, they must have the clause for pre-payment. Otherwise, you may be in for a huge penalty.

• High interest rates

If borrowing with bad credit, the interest rates may be high. Moreover, taking it for a long term may mean paying more interest costs over time.  It increases the overall amount you must pay to clear the dues.

However, you can ease the impact by borrowing a smaller amount than what you need. Additionally, check the prospects of paying the dues early. It helps you save money on interest.

• Risk of accumulating debt

According to Lowell Financial, “a person gets into a wedding debt of £3,958 on average. It takes 1-2 years to recover from it.”  Thus, skipping payments due to sudden cash emergencies and financial mismanagement may lead to a debt trap. One may accumulate interest, penalties, and a mounting debt. It may be challenging to clear it.

However, if you encounter difficulties paying the dues, talk to your creditor. Identify the issues affecting the regular payments. The person may help you with an alternative payment plan, halt the payment, or provide a personalised solution. It is better than not paying the dues at all.

• Risk of borrowing more

It can be tempting to borrow more than you need. It could be due to the instinct of living up to the dream wedding lifestyle. However, it may eventually prove to be the biggest mistake. You may not be able to repay the dues and default. It affects your finances, credit score, and the fun associated with the wedding. 

It is therefore advisable to use a loan calculator to determine the amount you may qualify for. Borrow only that much or less than that to repay the dues comfortably.

• Potentials for loan rejection

If your credit score is less than the desired one, you may face rejection. Identify and pre-qualify before applying directly for the loan. It helps you understand the loan approval chances, eligibility criteria, and amount you may realistically get.

Should you consider a wedding loan?

A wedding loan is the right choice if you lack savings, need to fund big-ticket purchases, and have the flexibility to pay the dues later. In this case, you can check wedding loans to see if you can repay them on time.

However, if you can manage the wedding arrangements with savings without affecting other regular monthly payments, avoid wedding loans. It may prove costly as interest rates are generally high on such loans.