Marriage before mortgage?
08 Jan 2018
Recent research has revealed that two thirds of Brits who take out wedding loans don't own a house
MoneySuperMarket.com has revealed that 68% of wedding loan applicants don't own a property.
For those in the 18-30 bracket, the percentage is much higher with 76% non-home owners applying for a wedding loan and 26 being the most popular age to do so. This suggests that millennials in particular are prioritising in this way.
The prioritisation of marriage over a mortgage is perhaps an unsurprising fact given that in some areas wedding loans are cheaper than buying a house.
Of the 125,000 wedding loan applications that the research assessed, loved-up Londoners are the most likely to take out a wedding loan. The average wedding loan is now £8,466 (having risen from £7,946 since 2016) and in London, where the average house price is more than £480,000 and a 10% deposit is a staggering £48,000, it is clear to see why this is the case.
For Scotland and the North East, where house prices are cheaper, tying the knot is actually more expensive than a mortgage. It takes an average of four years to pay off a wedding loan - the equivalent of an average house deposit in the region, but despite this, the North East has one of the lowest proportions of non-homeownership in the UK at just 57%.
Sally Francis, money expert at MoneySuperMarket, commented: “Both mortgages and wedding loans come with responsibility and commitment but it’s interesting to see that a significant number of us, particularly millennials, are prioritising marriage over buying a home because in reality doing both is often unaffordable.
"Although Stamp Duty has recently been removed for first time buyers, which certainly helps, there’s a lot of speculation that mortgage rates will not be getting any cheaper. With staggering house prices showing no signs of going down and wedding loans also on the rise, it’s more important than ever to shop around and find the best quote when taking out a loan of any kind.”