If you’re in the market for a new boiler, financing could be a great option to help spread the cost over a longer period of time. Many companies offer financing deals that allow you to pay for your new boiler in instalments, rather than upfront in one lump sum. This can be especially helpful if you’re on a tight budget or don’t have a lot of savings to put towards a new boiler.
When looking for the best boiler finance deals, it’s important to compare different options to find the one that’s right for you. Look for deals with low interest rates and flexible repayment terms, so you can choose a plan that fits your budget. Some companies may also offer additional incentives, such as energy savings or added value to your home, so be sure to consider these factors as well. With the right financing deal, you can enjoy the benefits of a new, energy-efficient boiler without breaking the bank.
Understanding Boiler Finance Deals
If you’re looking to replace your boiler, but don’t have the cash upfront, a boiler finance deal could be the perfect solution for you. Here’s what you need to know about boiler finance deals.
What are Boiler Finance Deals?
Boiler finance deals are a way to spread the cost of a new boiler over a period of time. Rather than paying the full amount upfront, you have the option to make monthly payments over a set period. This can make a new boiler more affordable, and means you don’t have to wait to replace your old, inefficient boiler.
How Do Boiler Finance Deals Work?
Boiler finance deals work in a similar way to other types of finance. You choose a boiler, and the finance company pays for it on your behalf. You then make monthly payments to the finance company until the cost of the boiler is paid off.
The interest rate you pay will depend on the finance deal you choose, and the length of the repayment period. Some finance deals may offer 0% interest, while others may have a higher interest rate.
Types of Boiler Finance Deals
There are several types of boiler finance deals available, including:
- Interest-free finance: With interest-free finance, you don’t pay any interest on the amount you borrow. This can be a good option if you can afford to pay off the cost of the boiler within the interest-free period.
- Buy now, pay later: With a buy now, pay later deal, you don’t have to make any payments for a set period (usually 12 months). After this period, you’ll start making monthly payments.
- Fixed monthly payments: With fixed monthly payments, you pay the same amount each month for the length of the repayment period. This can make it easier to budget, as you know exactly how much you’ll be paying each month.
- Flexible finance: Flexible finance deals allow you to make extra payments or pay off the balance early without incurring any penalties. This can be a good option if you want the flexibility to pay off the balance early.
Boiler finance deals can be a great way to make a new boiler more affordable. However, you should choose a finance deal that works for you, and to make sure you can afford the monthly payments.
Factors to Consider When Choosing the Best Boiler Finance Deals
When choosing the best boiler finance deals, there are several factors that you need to consider. In this section, we will discuss some of the most important factors that you should keep in mind.
Interest Rates
One of the most significant factors to consider when choosing the best boiler finance deals is the interest rate. The interest rate will determine how much you will have to pay back in total, so it is important to choose a deal with a low interest rate. Keep in mind that interest rates can vary widely from one deal to another, so it is key to compare different options to find the best deal.
Repayment Period
Another factor to consider when choosing the best boiler finance deals is the repayment period. The repayment period will determine how long you will have to make payments for, so it is wise to choose a repayment period that is affordable and realistic for you. Keep in mind that longer repayment periods will generally result in lower monthly payments, but you will end up paying more in total due to the interest.
Eligibility Criteria
Before applying for a boiler finance deal, check the eligibility criteria. Different lenders may have different eligibility criteria, so make sure that you meet the requirements before applying. Some common eligibility criteria include age, income, and credit score.
Here’s an example below:
| Financing Option | Credit Score Requirement | Loan Amount | Repayment Term | Interest Rate |
|---|---|---|---|---|
| Personal Loan | Typically 600 or higher | Up to £25,000 | 1-5 years | 2.8%-29.9% APR |
| Credit Card | Good to excellent credit | Varies by card | Varies by card | 0%-21.9% APR |
| Hire Purchase | Typically 650 or higher | Up to 100% of boiler cost | 1-5 years | 4%-15% APR |
| Boiler Grant | Not applicable | Up to 100% of boiler cost | Not applicable | Not applicable |
Note: Eligibility criteria may vary depending on the lender or scheme, and additional criteria may apply. This table is intended as a general guide only and readers should conduct their own research to confirm eligibility criteria and loan terms.
Is a Deposit Required?
Some boiler finance deals may require a deposit, while others may not. If a deposit is required, factor this into your budget. Keep in mind that a larger deposit may result in lower monthly payments and a lower overall cost.
Additional Fees and Charges
Finally, you need to consider any additional fees and charges that may be associated with the boiler finance deal. Some common fees and charges include arrangement fees, early repayment fees, and late payment fees. Make sure to read the terms and conditions carefully to understand any additional costs that may be involved.
In summary, when choosing the best boiler finance deals, consider factors such as interest rates, repayment periods, eligibility criteria, deposits, and additional fees and charges. By taking these factors into account, you can find a deal that is affordable and meets your needs.
Best Boiler Finance Deals in the UK
If you’re looking to replace your boiler, but don’t want to pay the full cost upfront, then financing your new boiler may be the best option for you. In this section, we’ll take a look at the top 5 boiler finance deals available in the UK, as well as provide a comparison of the different finance options available.
Top 5 Boiler Finance Deals
- Heatable: Heatable offers great prices on Worcester Bosch boilers, as well as Viessmann and other top boiler manufacturers. Their finance options include 0% interest-free boiler finance, as well as interest-bearing loans with terms of up to 10 years at 9.9%.
- E.ON: E.ON offers a pay monthly option for your new boiler, with 10 years 7.9% APR. They also offer up to three years interest-free credit, with no upfront payment and no hidden charges.
- BOXT: BOXT offers a range of finance options, including 0% interest-free finance and interest-bearing loans with terms of up to 10 years at 9.9%. They also offer a buy now pay later option, where you can defer payments for up to 12 months.
- British Gas: British Gas offers a range of finance options, including 0% interest-free finance and interest-bearing loans with terms of up to 10 years at 9.9%. They also offer a buy now pay later option, where you can defer payments for up to 12 months.
- WarmZilla: WarmZilla offers 0% interest-free finance for up to 2 years, as well as interest-bearing loans with terms of up to 10 years at 9.9%. They also offer a buy now pay later option, where you can defer payments for up to 12 months.
Comparison of Boiler Finance Deals
To help you compare the different boiler finance deals available, we’ve put together the following table:
| Company | Interest Rate | Loan Term | Upfront Payment | Buy Now Pay Later | 0% Interest-Free Finance |
|---|---|---|---|---|---|
| Heatable | 9.9% | Up to 10 years | No | No | Yes |
| E.ON | 7.9% | Up to 10 years | No | No | Yes |
| BOXT | 9.9% | Up to 10 years | No | Yes | Yes |
| British Gas | 9.9% | Up to 10 years | No | Yes | Yes |
| WarmZilla | 9.9% | Up to 10 years | No | Yes | Yes |
As you can see, all of the companies offer interest-bearing loans with terms of up to 10 years at 9.9%. However, Heatable and E.ON offer the lowest interest rates, at 9.9% and 7.9% respectively. BOXT, British Gas, and WarmZilla all offer a buy now pay later option, where you can defer payments for up to 12 months.
Overall, there are plenty of great boiler finance deals available in the UK, so be sure to shop around and find the one that’s right for you.
0% boiler finance deals
Look at this example of a 0% finance option, which allows you to spread the cost of your purchase over 12 months with no interest charged. With no deposit required, you can enjoy a brand new boiler without breaking the bank.
The finance plan is simple and straightforward. For a new boiler costing £2,040 including installation, for example an Alpha E-Tec, you make 12 monthly payments of £170, until the total amount is paid off. This allows you to enjoy a new, energy-efficient boiler without worrying about upfront costs or interest charges.
Conclusion
In conclusion, getting a new boiler on finance can be a great option for those who cannot afford to pay the full amount upfront. There are many finance deals available, so compare them carefully to find the best one for you.
When considering a boiler on finance, it is important to keep in mind the eligibility criteria and the repayment terms. Some lenders may charge origination fees, so be sure to read the fine print before signing up for a deal.
Remember that the efficiency of your boiler can have a big impact on your energy bills, so it may be worth investing in a high-efficiency model. Look for boilers with an AFUE rating of at least 80 percent, and consider a condensing combi boiler for maximum efficiency.
A boiler on finance can be a great option for those who need to spread the cost of a new boiler over a longer period. Just be sure to do your research and compare deals to find the best one for you.