Mortgage now and loan for wedding vs spending all savings

stuart.pinfold

Hello,

Unsure where to put this for the best response as it covers multiple forum areas, so I have posted in multiple forums - please feel free to move/delete as appropriate.

We are getting married in July and have around £10,000 in ISA and saving accounts which will cover this and the honeymoon.

However what we really want is a house and a mortgage, especially at the moment before the housing market starts to expand again and house prices start to go up.

Would we be better taking out a loan to cover the cost of the wedding and using the savings towards a deposit, or wiping out all of our savings on the wedding and starting to save again afterwards?

We are aware that you are unable to use a loan as a deposit for a mortgage, hence the question.

As background, we have not been accepted in principle for either a mortgage or a loan, but we both have very good credit ratings. However as I work as a freelancer this may go against me, although I can provide the last three years or more pay slips, which prove that - while there are fluctuations in the amount I am paid weekly - the amounts are regular and fairly high. My other half is in a full-time job and gets paid monthly and can also provide the last two years' pay slips if necessary.

So, in our situation, would you get the loan and keep the savings to use as a deposit for mortgage hopefully in the next six months, or spend the savings, have no debts, but also put on hold plans for any kind of house ownership for at least another two years while the prices go up and up?

Any advice appreciated!

Stuart and Sarah

geoffky

prices will not be going up any time soon...wait until interest rates rise then you will see people who are on the brink panic..why spend all that money on a wedding that lasts a day....we done ours on far less and had a good wedding with two weeks in Crete and we had it at a Hilton.it seems madness when you look at what you could do with all that money to make your life far more comfortable...save like mad and a loan is a crazy idea...good luck..think long term..

brokeinlondon

please don't spend all that money on a wedding. All you'll end up with afterwards is a bit of paper. Hardly worth £10k

lawrie28

It's a bit of a tough one. If you by a house now, using the cash as a deposit, then you may not be approved for a loan to pay for the wedding. And if you get a loan for the wedding now, you may not get approved for the mortgage.

I would ask what is more important to you. Is it more important to have a fantastic wedding? Is it more important to own a house? Do you have to do one/other/both now, or can they wait.

Have you seen a house you want, an what kind of deposit in terms of %age are you looking at?

How long has it taken to save the £10k? Could you save another easily?

House prices are really low at the moment, so the house is the sensible option, but I can understand about the wedding as well.

You could scale back the wedding plans, and then have a bigger party in the future when you have the funds. You could wait to get married, or do it on a shoestring.

You need to think about what it right for you as a couple, and there is no point starting off in a new house, or marriage, or both without both of you being happy with the decision.

tonycottee

Unfortunately you've come to the wrong forum if you want advice about spending money on a wedding.
I hate to be the odd one out, but we spent quite a lot on our wedding and it was one of the best and most memorable days of my life. However, we already had a mortgage and didn't need to borrow quite so much.
As lawrie28 says, it's only a decision you can make as a couple.
You have to think how much having a £10k loan will impact on the kind of mortgage you will be offered.

[Deleted User]

i wouldnt worry about house prices rising much in the next 18 months,and i think it safe to assume that the % needed as a deposit will fall over the next year with 90% mortgages becoming common once again