An increasing number of couples planning to marry in 2027 or beyond expect to use loans to cover wedding expenses, according to research by specialist mortgage lender Pepper Money.

Its study found that 31% of engaged couples plan to take out a loan, up from 23% in 2019, highlighting the growing financial strain associated with weddings.

At the same time, fewer couples are relying on traditional funding sources such as savings, family gifts, and monthly income. Only 28% expect to cover wedding costs through their salary, compared to 38% of those who married between 2019 and 2024. Meanwhile, reliance on inheritance and financial gifts from family has dropped by 12 percentage points to 14%, suggesting more couples are managing wedding costs independently.

INCREASING RELIANCE ON CREDIT AND SECOND JOBS

The research also revealed that couples are making financial sacrifices to afford their weddings. Some are considering remortgaging (8%), while 13% are taking on second jobs to cover costs. In addition, more couples are turning to personal loans (25%, up from 16%) and credit cards (21%, up from 14%) to finance their weddings.

Ryan McGrath, director of second charge mortgages at Pepper Money, said the shift away from traditional funding sources reflects broader economic challenges: “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.”

WEDDING SPENDING PRESSURES

Rising costs are not only forcing couples to explore new funding options but also leading to financial regrets. The study found that 21% of married couples regret how much they spent on their wedding, and only 7% reported spending less than planned.

With 62% of couples owning a property by the time they marry, some are looking at second charge loans as an alternative to personal loans or credit cards. These loans allow homeowners to access equity in their property without affecting their existing mortgage rate, providing an option for those seeking longer repayment terms.

SHIFT TOWARDS SECOND CHARGE LENDING

Demand for second charge lending is growing, with figures from the Bank of England and the Finance & Leasing Association (FLA) showing a 17% year-on-year increase in second charge mortgage lending in the first half of 2024. Homeowners accessed £804 million in equity between January and June – significantly more than the £76 million lent in the buy-to-let sector over the same period.

McGrath noted that couples considering remortgaging should explore alternatives. “With more couples considering remortgaging, homeowners should assess whether a second charge loan is a more suitable option. These loans can provide greater flexibility, particularly for those with fixed-rate mortgages who want to avoid early repayment charges.”

As wedding costs continue to rise, the research highlights the importance of financial planning. McGrath advised couples to seek professional guidance when weighing up their options. “Speaking to a mortgage broker can help couples find the best financial solutions tailored to their needs, ensuring they can enjoy their special day without compromising their long-term financial stability.”