What has changed?
According to the Hitched 2024 UK Wedding Report, the average cost of a UK wedding reached £20,775 in 2024, and that figure does not include the honeymoon.
At the same time, interest rates on personal loans remain notably higher than they were before 2022. The FCA's consumer credit rules on creditworthiness, set out in CONC 5 of the FCA Handbook, require lenders to assess a borrower's actual ability to repay before approving credit, not simply their stated wish to borrow.
The combination matters: a larger wedding bill plus higher borrowing costs means the total amount repayable on a wedding loan can be significantly more than the original spend.
Why it matters
Borrowing for a wedding is not inherently a bad decision. However, it is a choice that carries real financial weight, and it is worth understanding that weight before signing a credit agreement.
Couples often underestimate how much they will borrow and how long repayment will take. To make that concrete: a £10,000 personal loan at a representative APR of 9.9% over three years would cost roughly £322 per month and a total of approximately £11,592, meaning around £1,592 in interest charges on top of the original amount. Extend the term to five years to reduce the monthly payment to around £213, and the total interest rises to approximately £2,780. A loan taken out in January for a summer wedding may still be running two, three, or even five years later, long after the day itself.
The important bit is this: the APR shown in an advert is a representative rate. Only 51% of accepted applicants need to receive that rate. Your actual rate may be higher, depending on your credit history and income, which would increase both the monthly repayment and the total cost above the figures above.
Who may be affected?
Anyone considering a personal loan or credit card to cover part or all of their wedding costs will feel these pressures most directly. That includes couples with limited savings who may be weighing whether to borrow the full amount rather than adjust the budget, as well as those who have recently taken on other borrowing, since lenders will factor in all existing commitments when assessing affordability under CONC 5. First-time borrowers, who may not yet have experience of how a repayment commitment affects a monthly budget over one to five years, may also find the worked example above a useful reference point.
A useful first step is to use a loan repayment calculator before applying. Seeing the monthly figure written down, alongside your other outgoings, can make the decision clearer.
What to read next
For a full explanation of how wedding loans work and what to check before applying, see our guide:
You may also want to check the loan repayment calculator and the affordability checklist before making a decision.
Sources
- Hitched 2024 UK Wedding Report, average UK wedding cost data for 2024.
- FCA Handbook, CONC 5, creditworthiness and affordability assessment rules for consumer credit lenders.