The True Cost of Borrowing for a Wedding
A mortgage might offer the lowest monthly repayments, but the total interest paid over the full mortgage term can be surprisingly high. If you add £20,000 to a 25-year mortgage at 5%, you'd pay around £15,000 in interest over the term — meaning your wedding ultimately costs £35,000.
Compare that to a five-year personal loan at 7%: you'd pay around £3,800 in total interest, bringing the total to about £23,800. The monthly payments would be higher, but the overall cost is significantly less. This is the crucial trade-off to understand before choosing a remortgage.
When It Might Make Sense
Remortgaging for a wedding could be reasonable if your current mortgage deal is ending anyway and you'd be remortgaging regardless, if you can commit to overpaying the extra amount within a few years to minimise total interest, or if keeping monthly outgoings low is essential for your financial stability in the short term.
Some couples also combine wedding borrowing with home improvement plans, raising a single lump sum for multiple purposes. If you're planning to renovate your kitchen and fund your wedding, doing both through one remortgage could be more efficient than taking multiple loans.
Alternatives Worth Considering
Before committing your home as security for your wedding, explore these alternatives:
- Personal loan — unsecured, typically repaid in one to seven years, no risk to your home
- 0% credit card — interest-free for up to 24 months, good for deposits and smaller purchases
- Extended saving period — a longer engagement gives you more time to save
- Flexible budgeting — many couples find they can have a wonderful day for significantly less than the average spend
Many financial advisers would recommend against securing a depreciating expense (a wedding doesn't increase in value) against your home. The risk, however small, is that if you can't make your mortgage repayments, your home is at stake.
Making the Decision
If you do decide to remortgage for your wedding, borrow only what you need, create a realistic wedding budget before applying, and plan to overpay the extra amount as quickly as possible. Every pound you pay back early saves you interest over the remaining term.
Speak to an independent mortgage adviser who can help you understand exactly how much the extra borrowing will cost over the full mortgage term. Seeing the real numbers in black and white often helps couples make a more informed decision about how to fund their celebration.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual rate available will depend on your circumstances. Think carefully before securing other debts against your home.