Taking out a loan for wedding

Odinson84

To cut to the chase, I have totalled everything up for our wedding including the honeymoon and spending money.

I have deducted what we have saved so far and a conservative estimate of what we can save between now and June. 

This leaves us looking at a loan of £10,000.

Equifax score is 1000/1000
Trans Union is 616/710 - Good category
Experian is 999/999

The more detailed history is almost all positive. The only negative is I am over 50% on one of my credit cards (interest free) and paying more than double the minimum off each month. 

A positive is I am only using 31% of available credit card credit. 

My last hard check was when I took out a PCP deal on a car last August. £22k currently owing. 

I am a home owner with a mortgage of £144k outstanding against a current value of £220k. Lived there 3.5 years and on electoral register.

I have an old loan with 12 months left on it with £5k remaining.

I am in full time employment with same employer for 17 years. £40k gross salary.

My partner earns an additional £12k gross. 

No missed payments.

I was looking at Nationwide but I have read some things on Google that they really do not like lending money and many with good scores get declined.

I am 100% pre-approved with Admiral when using the MSE eligibility check but this could still be declined once a hard check is done.

Any thoughts on Nationwide? 

Any concerns from what I have listed that you think will see me turned down?

la531983

My concern would be why spend the money if you cant afford it, all essentially for the sake of one day.

Look at cutting the wedding back. 

As an aside the "scores" are meaningless, used to cross sell you credit products, not seen by ay lender and therefore not used in any lending decision

DullGreyGuy

First concern is you've fallen for the marketing gimmick that is the credit score... lenders dont see these, they've been made up by the credit reference agencies themselves. Lenders see your history and have their own systems for turning that into a decision. 

Secondly, already being in debt, is getting into more debt really the best way to start your marriage? I get it, its hopefully a once in a lifetime event but still would rather start married life with less debt and no matter if its a £50,000 5* hotel wedding or a £500 registry office and pub wedding you'll have great memories etc anyway. 

Personally, I've always found that ClearScore's 'guaranteed approval' does materialise into the promised amount and rate and once the rate offered and received was better than the soft checker on the lenders own site. No idea on Nationwide's current lending criteria, Admiral always show a really high APR when I see them in the searches. 

Odinson84

la531983 said:

My concern would be why spend the money if you cant afford it, all essentially for the sake of one day.

Look at cutting the wedding back. 

As an aside the "scores" are meaningless, used to cross sell you credit products, not seen by ay lender and therefore not used in any lending decision

The genie is out of that bottle now. Everything is booked and it is in June so the argument of just one day has been and gone.

We have been relatively sensible anyway and saved £3k by marrying on a Thursday rather than a Saturday.

Clive_Woody

You have a £144k mortgage, £22k car loan, £5k left on a loan, multiple credit cards that are not paid off in full each month....and you want to borrow another £10k for a wedding.

How much do you owe in total for loans and credit cards (excluding mortgage)? Any other finance - phones etc.?

I think you need to reconsider your approach to debt and maybe reconsider the scale and cost of your wedding and honeymoon.

Mark_d

You already have commitments to repay a credit card, a PCP, a loan and a mortgage.  Your mortgage repayment will likely increase significantly when your initial rate ends.  Will you have any money left from your take-home pay once you've paid these four items plus other bills including energy and council tax?

If you were unable to work due to illness or redundancy, how confident are you that you will be able to continue to repay your debts until you're back in work?

To be honest I think it would be risky to let you borrow £10k so this will likely be reflected in the interest rate you get on your loan.

Odinson84

All credit committments including my car is £35k I think. 

Can I just add that we can jump up and down all day long about what I should do according to people who know so much better, and how much I should spend on the wedding, and I totally get that.

What I am asking is for opinions on chances of getting the loan, not a debate on everything else please.

Grumpelstiltskin

You do know some loans taken out for expensive weddings last longer than the marriage.

We could say yes you will get a loan but you could be back here in 2 years time saying 'I can't pay my debt off'

sourcrates

Odinson84 said:

All credit committments including my car is £35k I think. 

Can I just add that we can jump up and down all day long about what I should do according to people who know so much better, and how much I should spend on the wedding, and I totally get that.

What I am asking is for opinions on chances of getting the loan, not a debate on everything else please.

That is like trying to predict the numbers in the lotto, no one can answer that as we are not the lenders, you can only apply and hope to be accepted.

CliveOfIndia

Well, first off I have to agree with all the others - your score means nothing, and it's not the wisest move to borrow such a large amount for a wedding.  That aside, and in answer to your question :

Odinson84 said:

Any concerns from what I have listed that you think will see me turned down?

(1) You already have unsecured debts totalling more than half your gross salary

(2) Another £10K would mean you have unsecured debts of over 90% your entire gross salary

(3) You have a mortgage on top of that to take into account

(4) If you don't clear that 0% card by the time the promotional rate expires, you'll be getting hammered with more interest

All of these things combined would probably make you a fairly risky bet for any lender.  Do a few eligibility checks, ideally on the lender's own website, see what results you get.  But I'd wager that you'll find very few lenders willing to offer you a loan at anything approaching a decent APR.

If I were in possession of a TARDIS I'd go back in time and tell you to reconsider whether you need to spend so much on what is, after all, just a big party.  But I appreciate that's not an option for you now that everything is booked, and I'm guessing you'd probably face pretty hefty cancellation fees if you wanted to cancel or postpone.

retiredbanker1

I would like to turn this thread on its head and ask the OP - what will happen if you cannot get a loan (a high probability IMO on affordability alone)? Everything is ''now booked'' - booking without a sensible plan to pay for it is asking for trouble.

Banks over the next 20 years will love you though - you will get one loan after another and another and contribute heavily towards their annual profits.