Third of couples turn to loans to finance their wedding

A third of couples (31%) planning to marry in 2027 or beyond will use loans to fund their weddings according to new research by Pepper Money, This is a significant increase from 23% in 2019.

This shift highlights the growing financial strain on engaged couples. They are also less likely to be able to rely solely on their monthly income to pay for their wedding, with only 28% planning to use it compared to 38% of those married between 2019 and 2024. Additionally, reliance on inheritance and family gifts has dropped by 12%, indicating a move away from traditional funding sources and a desire to manage their finances themselves.

Couples planning to marry are also facing difficult financial choices, with some even considering significant measures such as remortgaging (8%) and taking on a second job (13%). This demonstrates that the rising cost of weddings is becoming increasingly unaffordable for many and over a fifth of married couples (21%) regret how much they spent on their wedding. In total, only 7% spend less than they had originally planned to spend.

Ryan McGrath, Director of Second Charge Mortgages at Pepper Money, said “The shift away from traditional funding sources like family gifts and monthly income suggests a new reality for wedding finances. With wages lagging behind inflation, couples are finding it harder to save for weddings through traditional means. As daily expenses eat into potential savings, loans are becoming a more attractive, and necessary option for covering large, one-time costs like weddings. The increase in couples planning to use loans for future weddings indicates a growing need for flexible financing options.”

The study also highlights that couples are increasingly turning to personal loans and credit cards, with 25% and 21%, respectively, planning to use these methods, up from 16% and 14% in the last five years. This trend underscores the need for flexible and accessible financing options to help couples manage the rising costs of weddings.

Pepper Money’s research suggests that careful financial planning is essential for couples to avoid long-term financial strain. With 62% of couples owning a property by the time they marry, homeowner loans, also known as second-charge mortgages, offer a viable option. These loans allow homeowners to tap into their property equity without affecting their existing mortgage rates, providing an alternative to credit cards or personal loans. Homeowner loans, often referred to as second-charge mortgages, allow homeowners to tap into the equity of their property without impacting their existing mortgage rate. With nearly two-thirds of couples now owning a property by the time they are married; homeowner loans could offer financial flexibility for those wanting to access additional funds for their wedding day.

McGrath concluded “With more couples considering remortgaging, these homeowners should consider leveraging home equity for major expenses like weddings. Couples that own their home and are on the cusp of marriage should consider homeowner loans as a debt consolidation solution. Homeowner loans are  a possible alternative to remortgaging that can provide greater flexibility to spread the cost, especially if couples have a fixed rate in place on their current mortgage”

Ways to pay for weddings

Funding source	Last 5 years	Will get married in 2027 and beyond	Percentage point change
Loans (net – homeowner loan & personal loan)	23%	31%	+8%
Savings	63%	58%	-5%
Monthly income	38%	28%	-10%
Inheritance & gift from family	26%	14%	-12%
Personal loan	16%	25%	+9%
Credit cards	14%	21%	+7%
Not sure	3%	4%	+1%
Taking on a second job	10%	13%	+3%
A homeowner loan	8%	7%	-1%