What is boiler finance and what do you need to know?
Buying a new boiler can be costly – and is often something you haven’t planned for. Boiler finance is a great way of making sure you can stay warm and cosy in your home without the strain of shelling out a big payment in one go. However, with the huge variety of finance deals available today, it pays to do a bit of research. In this blog, we’ll answer some of the questions we’re often asked to help you make the right decisions.
How does boiler finance work?
Boiler finance lets you spread the cost of a new boiler by making monthly payments over a set time period. This could be 12 months, 24 months, 5 years or longer. Some deals offer 0% interest rates and/or no deposit, whilst others require a deposit and/or charge interest on your monthly payments. Most 0% / no-deposit deals are only available for shorter time periods, whilst longer repayment terms normally attract interest.
Some providers offer ‘Buy now, pay later’ finance, where you pay nothing for a set number of months (typically 6 or 12), then either start monthly payments or pay off the full cost of the boiler. A deposit isn’t usually needed, but interest will accrue unless the balance is settled at the end of the initial period.
Why would I choose boiler finance?
Paying for a new boiler in instalments is an increasingly popular option. This isn’t just down to the cost of buying the appliance, which typically ranges from £2,000 to £5,000. Many homeowners prefer monthly payments so they have more spare cash to spend on other things, such as paying essential bills, buying a new car or going on holiday.
Choosing a ‘Buy now, pay later’ deal is a good choice if you need some breathing space before starting repayments, or if you want to to save up for the full price of the boiler and pay it off at the end of the interest-free period.
With either option, you’ll benefit from having a brand new boiler fitted quickly, without having to worry about meeting the full cost upfront. What’s more, you’ll save money on your future energy bills, as the new boiler will be more energy efficient than the old one.
Can anyone apply for boiler finance?
Restrictions vary by provider, but from a legal viewpoint, you’ll need to be aged at least 18 to apply for any finance in the UK. You also have to prove you’ve been a UK resident for at least 3 years and have the means to pay the money back, such as income from a job, pension, savings or benefits.
A credit check will always be required and people with recent adverse credit history, or no credit history, may find it harder to obtain boiler finance. However, this depends on the lender. Many people in this situation can still find a deal, although the interest rates charged may be higher than standard.
What types of boilers are available on finance?
You can buy any modern boiler on finance, run on any kind of fuel including renewables. The types, makes and models of boilers that are available will depend on your chosen plumbing and heating provider. For example, here at Liverpool Heating, we’re Worcester Bosch Accredited Installers, so we offer finance on a range of Worcester Bosch boilers.
What’s covered by boiler finance?
Most plans will include the cost of removing your old boiler and installing the new one, as well as supplying the appliance. Depending on your system requirements and provider, your deal might also cover the cost of replacing or installing new pipework, radiators, thermostats, water cylinders and so on. This is a key benefit of choosing boiler finance over a bank loan, which may only stretch to the price of the boiler.
Is it easy to apply?
Applying for finance with Liverpool Heating couldn't be easier. Simply email us or give our friendly team a call to find out what monthly payment options are available to you. If your finance application is accepted, you will receive a personalised quote and repayment options based on your circumstances and requirements.
For more information about our finance options for new Worcester Bosch boilers, please get in touch. Our experienced and friendly team will be happy to answer your questions and provide a no-obligation quote.