Boilers on Finance – Everything You Need To Know

Need a new boiler but can’t afford the upfront cost? Purchasing your boiler on finance might be the answer, letting you pay in manageable monthly instalments.

Eco Happy’s expert guide delves into the various finance options, helping you navigate the terms and choose a plan that aligns with your financial needs.

What Is Boiler Finance?

Boiler finance schemes allow property owners to spread the cost of a new boiler over manageable monthly payments, with options available for different financial situations and preferences.

The following plans are available:

• Interest-free
• Pay monthly
• No deposit
• Buy now, pay later

However, longer finance terms may incur higher overall costs due to interest.

Popular finance deals start from £25 to £30 a month, and some also include the price of boiler installation with no deposit and a 0% annual percentage rate (APR). Keep in mind that some plans may be interest-bearing finance, so it’s important to check the terms before committing.

The first payment is usually required around 20-30 days after the boiler is installed, allowing for manageable monthly payments.

To ensure you choose the best plan for your needs and budget, consider the following: 

• Interest rates
• Deposit requirements 
• Loan term
• Finance eligibility
• Finance alternatives (e.g. purchasing a boiler on credit instead of taking out a finance plan)

How Does Boiler On Finance Work?

Boiler finance provides a convenient way to distribute the cost of a new boiler into manageable monthly payments.

It helps offset the high upfront cost of a new boiler, making purchasing a boiler more accessible for those who can’t afford the once-off lump sum payment. 

Here’s how boiler finance works:

1. Select a suitable boiler.
2. Complete a finance application, which includes answering a few questions about yourself, your home, income and dependents (if necessary).
3. Use calculators to figure out deposit and loan terms.
4. Secure a fixed quote online.

With a boiler on finance, customers can:

• Pay in instalments for their new boiler with limited or no upfront costs.
• Choose from a wider range of boilers without worrying about the upfront cost.
• Avoid saving for months or dipping into savings when the boiler breaks down.
• Keep their bank account intact while enjoying the benefits of a brand-new, efficient boiler.

What Are The Benefits of Boiler Finance?

There are many benefits involved in purchasing a boiler on finance, including the ability to take out interest-free plans and spread out the costs over two to 10 years.

Interest-free boiler finance

Interest-free boiler finance ensures reduced monthly instalments over your plan’s duration.

Interest-bearing plans can result in monthly repayments with an added fee of around 7.9% to 12.9%, depending on the provider and your credit score. 

With an interest-free plan, you’ll only pay off the amount of the boiler itself. However, the interest-free period typically lasts between 12 and 48 months. So, you’ll need to ensure you can comfortably pay off the loan amount within this time frame to avoid interest fees altogether. 

This is a much more affordable option for many customers. It allows you to tailor your repayments to your budget, making your boiler finance as flexible as possible.

Spreading boiler costs

A significant advantage of boiler finance is the flexibility it provides in spreading the cost of your new boiler over varying time periods.

You can choose to spread the cost over 2, 5, or even 10 years, depending on your financial situation.

If you have a shorter repayment period, you’ll have to pay more each month. Alternatively, if you have a longer period, the monthly payments will be smaller since they’ll be more spread out.

While longer repayment periods result in lower monthly payments, you may end up paying more in interest over the life of the finance agreement.

It’s all about finding the balance that works best for your budget and financial circumstances.

What Are the Costs Associated With Financing A Boiler?

The monthly costs of financing a boiler depend on various factors, including: 

• The finance plan you choose
• The term length
• The deposit amount
• The boiler model
• The interest rate (if applicable)

For example, if you opt for a 0% APR plan for up to 2 years, you might have higher monthly payments. 

A low-rate plan for up to 10 years might result in lower monthly instalments but a higher overall cost due to the interest over the loan term.

To help you get a better idea of what you might pay per month, a boiler finance calculator can be useful. This handy online tool can help you choose the best finance option with an APR that fits your budget.

What Are the Different Types of Boilers Finance?

The different types of boiler finance options include:

• Buy now, pay later
• 0% Finance
• Pay monthly with no deposit
• Pay monthly boiler finance

These options offer flexibility to suit different financial situations and preferences.

Buy Now, Pay Later

The ‘Buy Now, Pay Later’ scheme is ideal for those who want to temporarily postpone their boiler repayments. 

Here’s an overview of what this plan entails: 

• You can hold off on making payments for around 12 months before you start with the monthly repayments.
• This option is great for those who can’t afford an initial deposit or can pay off the whole loan during the deferred period.
• It offers the flexibility to manage your finances without the burden of immediate repayments.

If you can’t pay back the loan within the deferred period, you’ll have to start making monthly payments with a high APR, usually at around 12.9% or higher.

However, if you manage to pay off the loan in full within this period, there won’t be any extra interest. You’ll likely only have to pay an early repayment charge of around £29.

0% Finance

A 0% finance scheme allows you to pay back what you borrowed over a set period without any extra interest. It’s a fantastic choice for those who can’t afford to pay more each month.

To secure a 0% finance deal on a boiler, you’ll need: 

• To be a UK resident
• Pass a credit check
• Meet the eligibility criteria set by the finance provider or installer.

Typically, the payment term for 0% finance on boilers lasts 1 to 2 years, giving you a good range of options to fit your financial situation. These plans can also be customised to suit your needs, making 0% finance a truly flexible solution.

Pay Monthly with No Deposit

With the pay monthly with no deposit option, you can spread the cost of your new boiler without having to make an upfront payment.

You can split the cost of the boiler over a certain period, typically 3 to 10 years, allowing you to budget and handle your payments better.

While this option offers affordability and flexibility, you might end up paying more in interest over the duration of the finance agreement.

However, the ability to manage monthly payments without an upfront cost makes it a preferred choice.

Pay Monthly Boiler Finance

Pay monthly boiler finance usually allows you to choose your repayment plan and interest rate.

Interest rates for monthly boiler finance can vary, but they generally range from 0% to around 7.9% APR. That’s why it’s important to shop around and compare different finance options to find the best rate for your needs.

To be eligible for monthly boiler finance, you’ll need to:

• Be at least 18
• Live in the UK (for at least 3 years)
• Have a job (full-time or part-time)
• Have no CCJs or IVAs in the past 5 years
• Have a personal bank account for direct debit payments.

Can You Get Boiler On Finance With Bad Credit? 

Yes, you can get a boiler on finance with bad credit, although it may be a bit more challenging. 

Credit checks are performed to ensure responsible lending and to assess your ability to make monthly repayments.

However, many boiler finance companies deal with customers with bad credit and may be able to connect you with a lender who’s willing to approve your application.

How To Choose The Best Boiler On Finance

When purchasing a boiler on finance, you also need to consider the boiler brand and model, warranty and customer reviews of the boiler manufacturer and finance provider.

The most reliable boiler brands available on finance include: 

• Worcester Bosch
• Viessmann
• Ideal
• Baxi
• Vaillant
• Alpha

Additionally, you’ll need to consider the type of boiler best suited for your property’s needs. For example, system boilers are great for larger properties with high hot water demands, while combi boilers are best suited for smaller homes and apartments. 

Some other factors you should consider before you take out a boiler on finance include:

• The reliability of the boiler.
• Customer reviews of the boiler and finance provider. 
• The boiler’s warranty options.
• How the price of the boiler may affect your monthly finance plan.

Choosing the right boiler on finance involves comparing different models, finance plans, and providers to find the best fit for your heating needs and budget.

Get A New Boiler Quote Today

Before you take out a boiler on finance, it’s a good idea to get a boiler quote to understand the costs involved in the purchase and installation. 

At Eco Happy, we pride ourselves on our competitive boiler prices, efficient services, and rave customer reviews. We’ve worked with hundreds of businesses and homeowners across the UK and can recommend a boiler that suits both your needs and budget.  

Get your free, no-obligation boiler quote from Eco Happy today and experience cost savings like never before!

FAQs

Is it worth getting a boiler on finance?

It’s worth getting a boiler on finance if you don’t have the funds upfront, as it makes a new boiler more affordable and offers peace of mind.

Can I get a free boiler in the UK? 

Yes, you can get a free boiler in the UK under the Energy Company Obligation 4 (ECO4) scheme. Depending on your eligibility, you can either receive a grant for a free or partially subsided boiler. 

Which boiler financing option is best? 

The best boiler financing option for you will depend on your specific budget and requirements. For example, if you know that you will receive the required funds for a new boiler in a couple of months (e.g. from a bonus or commission), a buy now, pay later plan may be best for you. 

Final Thoughts

Taking out a boiler on finance is a great option if you can’t afford to pay the total amount for a boiler installation upfront. 

It offers a flexible and affordable solution for those looking to upgrade their heating system without falling into financial strain. Whether you opt for pay monthly schemes, interest-free finance, or a buy now, pay later option, there’s a finance plan to suit your needs.

So, why wait for your boiler to break down? With boiler finance, you can take control of your heating, lower your energy bills, and enjoy the comfort of a reliable, efficient boiler today.