Are you keen for extra space for a growing family, or desperate for a different kitchen - but can't afford to up sticks and move house? Maybe it's time to look at making home improvements and upgrading your current living environment to suit your needs? - whether it's adding an extension, or simply giving the bathroom a makeover and making it more practical. The benefits of home improvements Making the changes you want could not only make you happier, but also possibly raise the value of your home when you come to sell. For example, a good extension or loft conversion that increases the floor-space in your home will tend to increase the value too - but whether this will add more than the cost of the works depends on what the market is like when you come to sell. Or you may opt for improvements such as central heating or double-glazing as general upgrades on your property. Meanwhile, decorating the home can be done reasonably cheaply but still make it a ...
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Wedding loans
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Wedding loans guide
A wedding is a joyful occasion (or should be!). But, as all recently married couples know, it can also be a very expensive one.
Most weddings nowadays cost between £18,000 and £22,000, so it is hardly surprising that a lot of loved-up couples need to borrow to cover the cost of their nuptials. A low-interest personal loan is one of the easiest and most convenient ways to fund your big day.
But is it the right way for you? Here is a quick guide to the pros and cons of using a loan to pay for a wedding, as well as some tips on finding the best deal and a few alternative suggestions.
Advantages of a wedding loan
While most people are able to put some money towards the cost of getting married, the average cost of about £20,000 is out of reach for many couples. A personal loan offering the chance to borrow up to £15,000 over five years, for example, is a popular means of making up the shortfall.
You can currently borrow between £7,500 and £15,000 at an interest rate of around 5%. This makes a loan of this kind a relatively cheap way to access extra funds to cover the cost of your wedding.
Another benefit of taking out a personal loan is that your payments are fixed – so you can budget accordingly. You can also choose a loan with a term of between one and five (or at least three) years.
Repaying the loan within a shorter time frame (if you can afford to) means you will pay less interest overall. A longer time frame means a higher total interest bill, but each monthly repayment will be smaller (there’ll just be more of them).
What’s more, you can sometimes take a payment holiday of say two or three months at the start of the agreement, giving you a bit of financial breathing space if you need it as you settle into your new life of married bliss.
Disadvantages of a wedding loan
A wedding loan with an interest rate of 5% or thereabouts is a very attractive proposition. However, the rates available for those needing to borrow under £7,500 or more than £15,000 generally tend to be higher.
Lenders take your credit score into account when deciding what interest rate to charge you and how much you can borrow. If you have a poor credit history, this might mean you are unable to borrow at the market-leading rates.
Only people with high credit scores will be accepted for the best deals, while those with black marks will be offered a higher interest rate or refused credit altogether.
If you are unsure about your credit score, it may therefore make sense to sign up for a free credit file checking service before applying for a wedding loan – especially as rejected applications will further damage your file.
Remember too that many of the top personal loan deals also require you to fulfil certain criteria – for example being a supermarket rewards cardholder – to qualify for the headline interest rate.
Alternatives to a wedding loan
Many of the top credit cards available today offer 0% for an introductory period on balance transfers or purchases – or, in some cases, both. If you are disciplined enough, you can therefore borrow the money to pay for at least some of your wedding completely free of charge.
This is a great option for anyone needing to borrow a smaller amount – particularly given the higher interest rates on personal loans of under £7,500.
Borrowing on a 0% credit card can prove very costly if you get it wrong, though. Not only do you have to remember when the 0% deal comes to an end to avoid being hit with double-digit interest charges, the fact there are no fixed monthly payments can make it harder to manage your repayment plan after the big day. Discipline is required!
Finding the right wedding loan
Whatever type of loan you choose, shopping around for the cheapest deal is the best way to ensure that you pay as little as possible for credit.
You can do this quickly and easily by using the Money Supermarket loans channel to compare hundreds of different loans from a wide range of lenders.
The Help me find a loan tool can speed up the process of finding the best deals for your individual circumstances even more – all you have to do is enter a few details such as your name, your annual income and the amount you want to borrow.
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