The Cost of Committing: Mortgage or Marriage?

The Cost of Committing: Mortgage or Marriage?

4th April 2018

Two of the biggest commitments a person can make in their lifetime is to get married and to buy a house. While these can be huge commitments, they can also come with equally large price tags. The average UK house price inflation is up 5% year on year, so purchasing a home is becoming increasingly more expensive.

Combine this with the average cost of a UK wedding rising to £27,161, are millennials being forced to choose between marriage and mortgages?

Breaking Down the Cost of Buying a House

There are many costs that you may need to consider when buying a home. These may not all apply, and they can vary greatly depending on the type of property, the location, the lender and even the buyers themselves.

These costs can include:

  • Deposit - the deposit can be anywhere between 5% and 20% of the property value
  • Stamp Duty - this is a tax that is applied to homes costing more than £125,000 (or £500,000 if a first-time buyer)
  • Valuation fee - your mortgage lender will want to assess the property so they can work out the amount that they are willing to lend
  • Surveyor's fees - this covers the costs of having a property surveyed so you can be aware of any structural issues before you commit to buying
  • Legal fees - there is a lot of legal work necessary when buying a home, so you will need a solicitor or conveyancer to carry this out
  • Mortgage fees - you may need to consider booking fees, arrangement fees as well as mortgage valuation fees
  • Mortgage payments - the amount you pay will depend on the value of your property and the type of mortgage you opted for as well as your credit score
  • Other costs - you may need to factor in other costs such as hiring a removals company, any DIY or decorating you need to do and any furniture and appliances you need to buy before moving in

Breaking Down the Cost of a Wedding

A wedding is often considered to be the most important day of anyone's life, but the cost of the wedding day seems to continue to rise. According to The Telegraph, the average cost of a wedding in the UK is as high as £27,161. With the average house deposit amount standing at £33,000, many couples may be spending as much on their wedding as they would pay for the deposit on the house.

So, what are the costs associated with getting married?

  • Venue hire - this is usually the costliest part of the wedding, with the average cost being £4,354
  • Catering - many venues charge for catering on top of the venue fees, and with many receptions continuing into the night, paying for each guest to eat two meals can be incredibly expensive
  • Photography and videography - capturing the special day doesn't come cheap, with the average UK wedding photographer charging £1,480
  • Flowers and Decorations - dressing the venue is often important to couples, just as the flowers can be a wedding essential
  • Entertainment - wedding entertainment has evolved in recent years with many couples choosing anything from a swing band to a magician
  • The dress and suits - the average price of the wedding dress dropped in 2017 by 25% compared to 2016. The average cost is now £832 for the dress and £1,329 for the bride's entire outfit, while the menswear is only £577
  • The rings - in addition to the engagement ring, the wedding rings are a necessity for the wedding budget
  • Other costs - the additional costs of a wedding can include registrar fees, wedding stationery, favours, as well as hair and make-up

Are Millennials Choosing Mortgage or Marriage?

It is hard to know whether 20-somethings feel as though they have to make a choice between these two commitments. However, recent figures show that house sales have fallen by nearly a third in some parts of the UK. In addition to this, a recent study found that the average age of a woman getting married in the UK is now 30.8 years old, and 32.7 years old for men.

Perhaps young couples are finding that they need to or would prefer to wait before entering into these social and financial commitments. As social norms have changed, millennials are often not following the same pattern as their parents and are exploring other options such as renting before investing in larger commitments.

Both buying a house and getting married can be two of the biggest decisions and commitments a person can make in their life. Life insurance can come up when discussing these topics, so if life insurance is on your mind, you can find an easy way to compare life insurance quotes at Compare Cover.

You can use our life insurance calculator to find out more about the cover you need, or take a look at our life insurance guides for more information about the different types, such as mortgage protection life insurance.

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