Taking out a loan for wedding

born_again

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 one only the lenders can answer. But will depend on your income to available debt. So unless you are a big earner, please do not expect to get the headline rate.

Is this something your future intended is aware of?

MattMattMattUK

Odinson84 said:

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.

That would indicate that you cannot afford the wedding, not that borrowing more money is a good idea.

Odinson84 said:

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

As others have said, entirely a marketing gimmick.

Odinson84 said:

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.

A minimum of £171k debt, with the credit cards on top maybe £180k? You do not say how much the cards are. against an fixed asset of £220k and another deprecating asset (the car) that will almost certainly be worth less than the loan against it. Lenders will not always look kindly upon someone who is obviously living their life on credit, whilst you will find one who will lend to you the interest rate will be high and the decision to spend would be unwise.

Odinson84 said:

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

My partner earns an additional £12k gross. 

With your debt commitments those incomes do not really sound like there is a comfortable margin left for additional debt. 

Odinson84 said:

No missed payments.

No missed payments is the absolute bare minimum to be considered competent by lenders, it is an absolute floor, not a plus point.

Odinson84 said:

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?

Affordability mostly. On your income, with PAYE taxes and minimum pension contributions you are going to be taking home £2,480, your partner £950 for a household income of £3,430. When is your mortgage fixed to? 
Based on a 25 year term and 5% your repayments would be £842 pm, you do not say the loan interest rate, but that is a minimum of £416 pm (with zero interest, higher if it attracts interest), the car payments are likely to be in a similar £400-500 pm region, possibly more. Your debt repayments are half of your income, possibly more, that is generally not seen as sustainable. 

easyasonetwothree

Blimey there's a lot of negative people here! Some people seem to forget that getting a loan is actually ok, it's not the worst thing in the world (if it's affordable)! Weddings are usually expensive, especially if you have a big family and that can't be helped. 

I'd keep looking at eligibility calculators, some banks do them on their own websites. I've only had loans from Halifax and they were very easy and quick.

Good luck and congratulations on your upcoming wedding! 

Odinson84

To clarify:

There is only one card with a balance on it. That being £7k, interest free.

The car is £370 per month PCP.

The mortgage is £585 fixed until September 2025. 3% or thereabouts from memory.

My net monthly is £2,720 before any overtime. 

My partners varies between £950 and £1200 at peak times. Hotel trade.

My family are paying me £150 per month towards this loan if approved. They didn't have a wad of cash to hand over but are sending me a standing order each month. 

And yes I am aware the lender does not care about that and will not take it into consideration. I just added it for context.

Other committments are nothing out of the ordinary. £9 for my phone. £60 Sky and broadband. Then the typical council tax and so on. Energy £130.

CliveOfIndia

easyasonetwothree said:

Blimey there's a lot of negative people here!

Not negative, simply realistic, and trying to answer the OP's questions in the most rational way they can.  Far too often we see stories of people getting into severe debt from borrowing money they can't afford to buy things they don't need.

easyasonetwothree said:

Some people seem to forget that getting a loan is actually ok, it's not the worst thing in the world (if it's affordable)!

You've answered your own point there - nothing wrong with a loan if you can afford it.  There's everything wrong with a loan if you can't afford it.

easyasonetwothree said:

Weddings are usually expensive

They don't have to be.  Not unless you feel you have to keep up with the Jones's.  And yes, a honeymoon, maybe the sort of holiday you'd never normally take, is nice - but it doesn't have to even be taken straight away.

My own wedding was done on a shoestring.  Hired the local village hall, registry office service, a friend did the catering, we took a booze cruise to France to stock up on wine, the "honeymoon" was a week in a - admittedly very nice - B&B in Devon, then we had a holiday abroad about 6 months later.  Everyone commented on how it was one of the nicest, most fun, most relaxed and enjoyable weddings they'd ever been to.  All in, that was a fraction of the price of what the OP is talking about.

easyasonetwothree

CliveOfIndia said:

easyasonetwothree said:

Blimey there's a lot of negative people here!

Not negative, simply realistic, and trying to answer the OP's questions in the most rational way they can.  

Nope, OP asked their likelihood of being accepted for a loan and people's experience with Nationwide. 
I appreciate this is a money saving forum, but they didn't ask if anyone thinks they're spending too much on a wedding. 
Not everyone wants a shoestring wedding and that's perfectly reasonable too.

Odinson84

easyasonetwothree said:

Blimey there's a lot of negative people here! Some people seem to forget that getting a loan is actually ok, it's not the worst thing in the world (if it's affordable)! Weddings are usually expensive, especially if you have a big family and that can't be helped. 

I'd keep looking at eligibility calculators, some banks do them on their own websites. I've only had loans from Halifax and they were very easy and quick.

Good luck and congratulations on your upcoming wedding! 

Many thanks. I don't revel in this but ultimately I know what I can and cannot afford and I am not as foolish as what my post may convey. With a considerable pay rise on the horizon, it is more than doable.

Post honeymoon, I plan to turn my attention and overtime from savings to paying off my card.

Plus keeping my fingers crossed for a payout from the car finance scandal. 

CliveOfIndia

easyasonetwothree said:

Nope, OP asked their likelihood of being accepted for a loan

Well that has been answered by several different people, all of whom have the same opinion - "unlikely".

easyasonetwothree said:

Not everyone wants a shoestring wedding and that's perfectly reasonable too.

Yes, it's reasonable if you're not having to get yourself into debt in order to do so.  I'd like a Ferrari, but I can't afford one, so I'll make do with what I can afford.

One of the aims of this forum in general is to help people who have specific questions.  But it's also to offer advice - very often coming from people who have learned the hard way themselves - on how to avoid getting into unmanageable debt in the first place.

I do appreciate that in the case of the OP it may be a moot point, as everything is already booked and now needs to be paid for.  But if they find themselves only being offered loans at very high rates of interest, it may sadly be a very bitter pill to swallow.

Grumpy_chap

Odinson84 said:

To clarify:

There is only one card with a balance on it. That being £7k, interest free.

The car is £370 per month PCP.

The mortgage is £585 fixed until September 2025. 3% or thereabouts from memory.

My net monthly is £2,720 before any overtime. 

My partners varies between £950 and £1200 at peak times. Hotel trade.

My family are paying me £150 per month towards this loan if approved. They didn't have a wad of cash to hand over but are sending me a standing order each month. 

And yes I am aware the lender does not care about that and will not take it into consideration. I just added it for context.

Other committments are nothing out of the ordinary. £9 for my phone. £60 Sky and broadband. Then the typical council tax and so on. Energy £130.

I think it might be worth preparing a full budget for everything, involve your future betrothed, and set your own process for reaching financial resilience.  The SoA (Statement of Affairs) tools can work well for this - templates are available in the DfW (Debtfree Wanabee) area of this forum.

The simple act of writing everything down can focus the mind and bring clarity to the overall financial picture.  You don't need to share that tool if it works as a process, but if you want to find further supportive comment, then the result can be shared for independent review in the DfW board.

Having your own clear picture of what is exactly what will verify the amount that you need to borrow and then you can set about the best way to finance that.

A curve-ball, and I know you won't want to hear this.  You say everything is booked for the Wedding.  One thing that might be worth considering is the costs to do everything as currently planned, versus the costs if some parts are deleted.  You might lose a deposit, but save the extra expense, so it might be worth considering.  I am thinking, initially, about any "nice-to-haves" that you plan - for example a photobooth.

Finally, congratulations - I hope you have a wonderful day and many happy ever afters

Herzlos

You can probably get a loan, but given you're hurtling towards a total (non-mortgage) borrowing of more than your salary it's going to be painful.

You say the weddings booked so can't change that, but the car has £22k outstanding on it. How much is the car worth? Downgrade that to a £12k loan and that's your wedding paid for without financial ruin for years.