Eco Happy (Solar Expert)

Published February 8, 2024

New Boiler on Finance

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

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

Pay Monthly Boiler Scheme – Overview

  • Boiler finance schemes allow homeowners to spread the cost of a new boiler over manageable monthly payments, with options available for different financial situations and preferences.
  • Interest-free boiler finance and pay monthly plans with 0% APR are available to enable borrowers to avoid paying extra overtime; however, longer finance terms may incur higher overall costs due to interest.
  • The choice of boiler on finance should include considerations of model reliability, customer reviews, warranties, and the reputation of different brands, ensuring you select the best option for your needs and budget.

Boiler Finance

Now, boiler finance might sound complicated, but this guide is here to show that it can actually be one of the most beneficial methods to purchase a new boiler replacement.

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

So, if you’re not ready to part with a large sum upfront, boiler finance deals have got you covered.

Here’s how it works:

  1. Select a suitable boiler.
  2. Complete a finance application, which includes answering a few questions about your home.
  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 without any upfront cost
  • 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 heating system.

Pay Monthly Boiler Schemes

Imagine being able to get a new boiler installed without having to spend a fortune upfront. Sounds like a dream? That’s where pay monthly boiler schemes come into play, including the popular pay monthly boiler scheme.

This adaptable payment plan, known as a pay monthly boiler plan, allows you to divide the cost of a new boiler into monthly instalments, eliminating the need for a hefty upfront payment.

With popular finance deals starting around £30 a month, getting a new boiler installed has never been so affordable. Some plans even offer a new boiler installation and boiler with no deposit and 0% APR.

One of the significant advantages of a pay monthly plan is that it requires no immediate cash outlay. The first payment usually kicks in 20-30 days after the boiler is installed, allowing for manageable monthly payments.

It’s worth noting that a monthly payment plan is accessible to homeowners across the UK. Yes, you heard it right. You can even get top brands like the Worcester Bosch 4000 combi boiler with £0 deposit, paying for it each month.

However, some of these plans may be interest-bearing finance, so it’s important to check the terms before committing.

The Benefits of Interest-Free Boiler Finance

Who wouldn’t want to save money while investing in a new boiler? That’s where interest-free boiler finance comes to the rescue.

This financing method enables you to repay the loan interest-free. It’s like buying your boiler at a cash price but paying for it over time.

The beauty of interest-free boiler finance lies in its simplicity and affordability. You can keep your monthly payments low without paying any extra interest.

Plus, the total cost of the boiler and installation is the same as what you repay, making it a more affordable option for many customers.

Interest-free boiler finance is usually available without any deposit, and you can pay it off for up to 3 years. If you want to put down a deposit, you can choose a payment plan from 12 to 36 months.

This way, you can tailor your repayments to your budget, making your boiler finance as flexible as possible.

Monthly Costs for Boilers on Finance

What are the costs associated with financing a boiler? Well, it depends on various factors. The monthly payments for boilers on finance depend on the finance plan you choose, the term length, the deposit amount, and the boiler model.

Different finance options can affect your monthly cost. For instance, if you opt for a 0% APR for up to 2 years, you might have higher monthly payments. But if you choose low-rate finance for up to 10 years, you might end up with lower monthly payments but a higher total cost due to the interest over the loan term.

Don’t worry; calculating your monthly payments doesn’t have to be a headache. This is where boiler finance calculators prove to be useful.

These handy online tools help you figure out how much you want to pay each month and choose the best finance option with the appropriate APR.

Different Types of Boilers on Finance

Having discussed the basics of boiler finance, it’s time to explore the various boiler finance options more intricately. Here are some options to consider:

  • 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 an ideal choice for those who wish to postpone their payments temporarily. With this plan, 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 to make an initial deposit or for those who can pay off the whole loan during the deferred period.
  • It offers the flexibility to manage your finances without the burden of immediate repayments.

But what happens if you can’t pay back the loan within the deferred period? If you don’t pay back the loan within the deferred period, usually 12 months, then you’ll have to start making monthly payments at an APR of 12.9%.

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

0% Finance

If you’re seeking a financially advantageous payment plan, the 0% finance scheme may be an apt choice. This plan allows you to pay back what you borrowed over a set period of time without any extra interest. It’s a fantastic choice for those who can handle paying more each month.

To secure a 0% finance deal on a boiler, you’ll need to be a UK resident, pass a credit check, and meet the criteria set by the finance provider or installer.

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

Pay Monthly with No Deposit

The pay monthly with no deposit option is another great choice for those who’d prefer not to part with their cash upfront. With this option, you can spread the cost of your new boiler without having to make an upfront payment.

When you go for this option, you can split the cost of the boiler over a certain period, typically 3 to 10 years, without having to shell out any money upfront. This allows you to budget and handle your payments better.

While this option offers affordability and flexibility, it’s worth noting that you might end up paying more in interest over the life of the finance agreement.

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

Pay Monthly Boiler Finance

Last but definitely not least, we have the pay monthly boiler finance plan. This option is all about flexibility, as it allows you to choose your repayment plan and interest rate.

Typical 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 to pay 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.

Why You Should Get a Boiler on Finance

What are the benefits of financing a boiler? Well, for starters, it can lead to significant savings on your heating bills. By investing in a new, energy-efficient boiler, you could save up to £800 per year, according to the Energy Saving Trust.

Also, if you pair it with smart thermostats like Hive or Nest, you’ll have more control over heating and save even more while enjoying extra comfort.

Moreover, getting boiler finance can mean less money spent on maintenance and savings in the long term, thanks to the reliability and efficiency of newer boiler technologies.

Plus, boiler finance gives you the flexibility to spread out the cost, making it easier to manage your finances.

Spreading Boiler Cost Over 2, 5 and 10 Years

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.

But how does the length of the repayment period affect your monthly payments? Well, if you have a shorter repayment period, you’ll have to pay more each month. But if you have a longer period, the monthly payments will be smaller because you’re spreading the payments out over a longer time.

However, bear in mind that 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.

Boiler Finance Credit Checks

One potential challenge when applying for boiler finance could be the credit check. Credit checks are performed to ensure responsible lending and to assess your ability to make monthly repayments.

When you apply for a loan, it shows up on your credit file and could have an impact on your credit score. However, if your credit score is not perfect, don’t be disheartened.

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.

Choosing the Best Boiler on Finance

However, the financial aspect of getting a new boiler on finance is only part of it, as you will also need to decide which boiler you actually want fitted in your property.

Opting for the best boiler on finance involves more than just selecting a finance plan. It’s also about the boiler model, the warranty, customer reviews, and the overall reputation of the brand.

The most reliable boiler brands available on finance include Worcester Bosch, Viessmann, Ideal, Baxi, Vaillant, Alpha, and Potterton.

In addition to these, boiler manufacturers will offer different boiler types, such as combi boilers and system boilers, so knowing which one is right for your home is vital to the efficiency of your brand-new boiler.

When comparing different boiler brands and their features, it’s important to consider your specific needs. Some factors to consider include:

  • Reliability
  • Customer reviews
  • Warranty options
  • How they may affect the monthly finance plan.

In essence, 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.

Boiler Financing Options – Our Thoughts

Now that you are much more informed on financed boilers, it can be a potential option for you whenever you are looking for a new boiler installation.

Boiler Finance 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.

Frequently Asked Questions

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 you get a boiler and pay monthly?

Yes, you can get a boiler and pay for it monthly through boiler finance, which allows you to spread the cost into affordable monthly payments without needing a deposit.

You can even make overpayments at any point. You can spread the costs over up to 10 years with an interest-bearing loan.

How do I get a boiler with bad credit?

You can consider alternative financing options like boiler subscription, renting a boiler, or peer-to-peer lending, which may have more lenient credit requirements and not require a traditional credit check.

Can I get financial help with a new boiler?

Yes, if you receive certain income-related benefits, you may be eligible to have your old boiler replaced with a new one at little to no cost.

What is boiler finance?

Boiler finance is a way to pay for a new boiler through monthly instalments, making it more manageable for your budget.

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