Millennial couples are favouring marriage over home-ownership when it comes to spending big
As it gets more and more expensive to get married and to get a mortgage, price comparison website MoneySuperMarket has revealed that 68% of couples who take out a wedding loan don’t own a house – showing that couples are prioritising marriage over mortgages.
When you look at the 18-30 bracket, the number of those taking out a wedding loan before they own a property rockets to over three quarters (76%).
MoneySuperMarket analysed over 125,000 wedding loan applications and revealed that Londoners are the most likely to put love first, with more wedding loans applied for in the capital than anywhere else. They’re also the biggest spenders, borrowing on average £10,172 compared to the national average of £8,312.
Those living in London may put a wedding before owning a home due to the astronomical house prices – the average home in London costs more than £480,000 which means Londoners have to pay out 138% of their annual salary to cover a house deposit – whereas the average wedding loan takes up just 32% of their income.
Wedding loans are increasing year on year – in 2017 couples were borrowing £8,466, up from £7,946 the year before. In Scotland and the North East, getting married actually works out more expensive than taking out a mortgage – but 57% of non-homeowners living there are still taking out loans to pay for their wedding.
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.”
Read more about the fascinating spending (and wedding) habits of millennials here.