Wedding Loan

edinguy2013

Hi, me and my partner are looking at getting married and are looking to get a joint loan of £25k, this shouldn't be an issue as we both earn enough etc.

The issue we are slightly worried about is that not all of the loan will be spent on the wedding (only about £14k), the rest we plan on buying some stuff and going on holiday etc.

Can banks check what the money they lend has been spent on? Is this common practice? Would it be normal for a banks to ask for proof of the money being spent on what they lend for?

We're both newbies when it comes to loans, neither of us have had anything bigger that over-drafts before. We're fully aware of the debt implications and we are not worried about this as we are both financially savvy and honest.

lippy1923

Your reasons for wanting the loan sound acceptable from a banks point of view. I have not known a lender to ask for proof of what you spent the money on.

All they want to know is are you money laundering, are you gambling and are you looking to use a personal loan for business purposes. If it's for none of those reasons you should be fine, as long as your credit history is good and you are employed with a wage good enough for repayments.

By the way expect to get flamed by other posters on here. It's frowned upon by money saving experts to start married life in debt. You will be encouraged to save for it (which is the best advice) but it's up to you

jonesMUFCforever

Both earning good money but no savings??? Why do you need to borrow so much???

Apples2

Is it a case that you both see the addition of each other Salaries resulting in you being filthy rich?
Doesn't quite work like that in reality.

If accepted for your loan, you can splash it on whatever you want, they won't come checking up later. They will do all their checks beforehand.

Good luck to you but not many people in your position look back and consider it money well spent later on.

Bravehearted_2

lippy1923 wrote: »

Your reasons for wanting the loan sound acceptable from a banks point of view. I have not known a lender to ask for proof of what you spent the money on.

All they want to know is are you money laundering, are you gambling and are you looking to use a personal loan for business purposes. If it's for none of those reasons you should be fine, as long as your credit history is good and you are employed with a wage good enough for repayments.

By the way expect to get flamed by other posters on here. It's frowned upon by money saving experts to start married life in debt. You will be encouraged to save for it (which is the best advice) but it's up to you

I'm sorry but this makes zero sense. The reason for wanting the loan has no bearing on getting or not getting it. One reason isn't more valid than another.

If Mr A wants a loan to go on a drunken drug induced sex fest in the nether regions of the world and can afford it as demonstrated with a good credit history and solid earning to match, his application isn't viewed as not valid. Or less valid than Mr B who wants a loan he'll struggle with, but wants it to marry the love of his life. Not saying the OP will struggle.

But I will put money on the fact that he won't get 25k.

shonzyd

when are you planning on getting married? weddings normally take 12-18months to plan - can you not save a decent amount in that time to atleast reduce down the amount your are borrowing?

You can be as financially savvy as you like, but what if one of you lost your job, could you afford the repayments then? Think very carefully. Borrowing 25k is a huge commitment.

DCFC79

Jeez 14k on a wedding, that's a lot of money for it. You can do it for much less. I'm sure the OP will be back at some point to say they having trouble paying the loan. Watch superscrimpers that was on the other day, might give you some points what you can cut back on.

At the end of the day OP its your choice what you do.

opinions4u

Bravehearted wrote: »

I'm sorry but this makes zero sense. The reason for wanting the loan has no bearing on getting or not getting it. One reason isn't more valid than another.

Credit scoring systems take in to account loan purpose and term. A loan for a car is likely to score higher than a loan for a holiday. Home improvement higher than consolidation.

Additionally, certain loan purposes (e.g. Invest in business) will be outside policy and declined.

I'd expect a £25k loan to be manually underwritten. In the case of a wedding an underwriter will be interested in seeing the applicant's ability to save somewhere close to the monthly payment over a period of time. In the case of a holiday there may be some nervousness about length of term, although honeymoon is an exception to the rule.

As for "to buy some stuff" I'd want to know what "stuff". "Stuff" should be bought out of income.

My guess is that this loan application may well get declined.

Borrowing for "stuff" doesn't sound financially savvy.

tonyh66

another we're loaded but can't save thread by the looks...............

_Andy_

Bravehearted wrote: »

The reason for wanting the loan has no bearing on getting or not getting it.

Actually it does - hence why lenders ask for the purpose.

spenceeyftb

Hate to say it but just put the wedding back and save the money.

Who on earth wants to start married life in debt, unless you're talking about usual debt - house.

Also 25k is a lot of money to spend you could easily have a lavish wedding for half that.