Borrowing to pay for your wedding
Borrowing on a mortgage to pay for a wedding is not the ideal start of a married life but a reality for most. In a 2017 survey featured in The Independent the average cost of a wedding was £27,161 a figure that is difficult to reach on personal loans and credit cards; so the alternative may be a remortgage or second mortgage.
The better news is interest rates are close to an all-time loan on both remortgages and second charges (secured loans). Normally the main costs for a wedding are the venue, honeymoon and food. The guest number can of course help curb two of these but as you have probably experienced that distant relative of your partner is suddenly the most important person in the world!
The choice between a remortgage or second mortgage can be a difficult one and guidance from a professional Mortgage Broker, such as Niche Advice is likely to be beneficial. Raising money against property unlike personal loans and credit cards has the added advantage of borrowing more and also generally greater tolerance on your status.
As well as funding the wedding a mortgage or second mortgage can equally be used to consolidate any personal loans or credit card balances you have already taken out. However, debt consolidation normally results in paying more in the long run as you are borrowing the money for a longer period.
It will of course be the best day of your life, but with the money taken care of it could be even better.
Mortgages to pay for Weddings – Example Products
Initial Rate: 1.39%Subsequent: 5.69%The overall cost for comparison 4.90% APRC
The total amount you must pay back, including the amount borrowed is £341,160.08
Features: fixed until 31/12/2020, following by a 1% discount until 31/12/2023. Free valuation.
|Type and initial benefit period||Fixed until 31/12/2020|
|Minimum deposit / equity:||35%|
|Telegraphic transfer / CHAPS fee||£35|
|Lender Legal fee charged to your solicitor||£120|
|Early repayment charge||3/2% of the amount repaid in the fixed period|
Initial Rate: 3.99%Subsequent: 3.69%The overall cost for comparison 4.20% APRC
The total amount you must pay back, including the amount borrowed is £39,437.92
Features: Borrowing £25,000.
|Type and initial benefit period||Fixed for 2 years.|
|Minimum deposit / equity:||42%|
|Telegraphic transfer / CHAPS fee||£35|
|Lender Legal fee charged to your solicitor||N/A|
|Early repayment charge||3% of the amount repaid in the fixed period|
Niche Advice offers appropriate advice on mortgages to pay for wedding ceremonies. For more information please complete the Contact Form on this website or call T: 020 7993 2044.
Any property used as security, which may include your home. may be repossessed if you do not keep up repayments on your mortgage
Residential and Buy to Let Mortgages
Rates current as at 3/11/18. The overall cost for comparison is based on an open market value of £300,000 over a 25 year term (unless otherwise stated). Large loan product example is based on a property value of £800,000. Right-to-Buy product examples are based on a discounted purchase price of £200,000. Repayment for Residential and Interest only for Buy-to-let (unless otherwise specified). Second Mortgages assume the first charge balance is £100,000. Eligibility will depend on your own personal circumstances.
KEY – ERC = Main early repayment charge.
The purpose of this web is for information only and is based on a fictitious illustrative scenario. It does not constitute a Mortgage Offer in any way.
It is essential that you seek independent mortgage advice as a suitable product will be based on your own individual circumstances. An interest rate should not be read in isolation, and you should refer to your personal key facts illustration and Mortgage Offers for full terms and conditions. If anything is unclear it should be discussed fully with both your mortgage and legal advisors before entering into a mortgage contract with the lender.
The information contained herein is based on research through the Trigold (IRESS UK) sourcing system. When first published to this site the data is normally 24 hours behind real time, and may or may not still be available.
A first charge over your property is required as security for the loan.
The formal mortgage offer of an advance will be subject to a valuation and other satisfactory references.
Author: Richard Stokes
Richard Stokes is a partner at Niche Advice who are whole of the market Independent Finance Brokers In London. His role is very much focused on on Mortgage and Insurance products.
Niche Advice is not tied to any bank, building society, estate agent or insurer and offers Independent Mortgage Advice and Insurance advice.