Wedding festivities can be hectic and tiring, but most of us can’t wait to start the new chapter of our married lives with a honeymoon. But since weddings are a costly affair, many couples are forced to compromise on their honeymoon. This is where honeymoon loans come into the picture – these are wedding loans that you can use to finance your honeymoon.

Honeymoon loans are essentially personal loans designed to help you pay for your honeymoon in small and affordable monthly instalments. You can borrow honeymoon loans from £1,000 to £35,000 over 12-84 months. Since you get a lump sum disbursed into your bank account upon approval, it becomes easier to pay for the honeymoon expenses upfront.

Like personal loans, the success or approval of your application for honeymoon finance depends heavily on your credit score. Your credit score enables lenders to assess their risk proposition in lending your money, making it a pivotal factor in your application. Other salient factors are your income, employment status, electoral registration, debt-to-income ratio, credit utilisation, etc.

You ideally choose an offer from a list of real rate proposals from our lending panel based on a harmless soft-credit check. The lender you select then performs a hard credit enquiry to evaluate your affordability. Once approved, the lender would transfer the lump sum directly into your bank account, which you can use to finance your wedding or honeymoon expenses.

While honeymoon loans are an affordable and straightforward way of financing your romantic getaway, it is crucial to understand the repayment implications associated with them. Missing repayments on your honeymoon loan could gravely impact your credit score. Moreover, suppose you default on the loan. In that case, you may land a County Court Judgment (CCJ), which stays on your credit file for six years, hampering your chances of securing credit to fulfil your other life goals.

Here’s a list of some of the basic honeymoon expenses that you might incur:

• Flights
• Accommodation – hotel, resort, or Airbnb
• Car rentals
• Meals
• Sightseeing – visitor fee
• Shopping
• Entertainment – casinos, movies, etc. 
• Travel agent fees
  
  

The list may vary depending on your travel schedule and budget. It would be best to set aside money for miscellaneous expenses or indulgences in your budget.  

In a honeymoon fund, a couple makes a wish list of gifts and experiences they want for their wedding instead of using a traditional wedding registry. Guests can then give money, buy experiences or send personalised gifts for the couple by their wish list. 

The list can include anything – from flights to accommodation, meals, and activities for their honeymoon. In addition to offering personalised gifts to the couple, the honeymoon registry also eliminates the awkwardness that couples might face when they ask guests for cash instead of gifts. On the other hand, wedding loans are personal loans that can help you finance your wedding expenses – right from catering, attire, and décor to your honeymoon. You can effortlessly pay your wedding deposits with a wedding loan and repay them in manageable monthly instalments over time. The honeymoon fund may cover your honeymoon costs in the form of ‘gifts,’ but a wedding loan can help you protect your overall expenses.

Here’s how you can save money on your honeymoon:

• Opt for all-inclusive plans as they generally have better discounts. 
• Tell travel companies that you’re honeymooning. They usually accommodate additional discounts for newlyweds. 
• Find destination wedding deals that include honeymoon extras in the package. 
• Try and avoid a peak season wedding – this could help you save on the overall wedding cost. 
• Use reward points, credit card points and flight miles to plan your honeymoon. 
• Book your vacation in advance to get the best deals and cheaper flight tickets. 
• Allow friends and family to help you through gifts. 

Wedding loans can be a big decision, so inform your partner about this choice. If you’re perplexed about whether to opt for a loan or not, ask yourself the following:

Is this a suitable loan amount for me?

You should evaluate your ability to repay the loan before applying for it. You should borrow only as much as you can comfortably repay within the timeframe agreed upon by the lender and you.

Will I be able to commit to the loan term?

Taking out a loan for a longer term requires more commitment. If you take out a long-term loan, your monthly payments may be lower, but your overall interest rate will probably be higher. Determine what loan term is convenient for your financial situation.

What happens if I miss a repayment?

You can lose a few points from your credit score when you miss a payment. Defaults can result from missed payments, resulting in a County Court Judgment (CCJ), negatively impacting credit scores. Therefore, paying your debts on time and maintaining a healthy relationship with credit is essential.

Do I need a contingency plan?

Maintaining repayments will be easier if you have a contingency plan for emergencies. Make an informed decision based before borrowing a wedding loan for your honeymoon.