Buying a new boiler outright is too expensive for many people, so a monthly payment plan is the only option available. In this guide, we will explain the best pay monthly boiler schemes on the market, show you how to save money, and even save money when buying a boiler on finance.
If money is tight, the prospect of buying a new boiler and finding several thousands of pounds to do so can be stomach-churning. You are not alone. Many people cannot afford such a significant outlay and are instead forced to buy a combi boiler on finance.
A lot of people do this through gritted teeth and wince when they think of the interest payments they will have to make.
But it doesn’t have to be that way. There are some great boiler finance deals out there and also a number of different ways to get the APR down and even save money on your boiler.
New Boiler on Finance Schemes
Regular boiler installation firms will often provide finance deals for new boilers and installations. But these will frequently come with high rates of APR and, frankly, are what tend to give boiler finance deals a bad name.
But the world of boiler installation has changed a lot in recent years and a new wave of online boiler installation companies have revolutionised the way we buy a new boiler.
This includes buying boilers on finance. These new online companies have low overheads and are able to pass on big savings to their customers, even those that buy on finance.
The best online boiler finance company operating in the UK right now are:
Heatable
Heatable is another online boiler installation company that offers great prices on Worcester Bosch boilers but also Viessmann and some other top boiler manufacturers too.
They can offer you a top-range Worcester Bosch or Viessmann boiler from as little as £1,600, which is terrific value for money.
Heatable offers a range of finance offers to users, with APR’s never straying above 9.9% which is good. With these deals, the bigger the deposit you can raise, the less you will end up paying too.
There are some interest-free offers available on the site too.
APR Rates – Interest-Free and Upwards
If you look at a few of the top boilers that come up on these sites, you’ll see that typical rates are around 12.9% APR. This isn’t extortionate and we have seen much higher rates out there, but it will still add up over the course of your repayments to quite a large sum.
There are a few boilers available through Heatable with a 0% APR.
Anything between 10% and 20% could add as much as an extra year of repayments to your plan. This is a lot of cash, so our advice would be that if the APR is in this range of higher, look to take out a loan from your local bank instead. This will usually have an interest rate of between 5% and 10% APR and so save you a bomb.
Monthly Repayments (From £17 Per Month)
Once you have chosen your boiler and found a finance deal with an APR rate you are happy with, you’ll need to set a monthly repayment amount.
If you have an APR rate anywhere above 0%, you will want to pay off the debt as quickly as possible. This minimises the total amount of interest you will end up paying.
Obviously, the lower the monthly repayment for your boiler finance deal, the longer it will take to pay off. So, while a low monthly repayment is attractive (and sites like Heatable can go as low as £17 a month), it does mean you could be paying off your boiler for 10 years or more.
Repayment Term (From 2-10 Years)
Online boiler installation companies like Heatable typically offer repayment periods of between two and ten years. The length of the deal on offer will depend on the boiler you want to buy, the deals available at the time, and your own personal circumstances.
Typically, you’ll find that most companies offer boilers on finance with options of repayment periods from 24-120 months. But as we noted above, beware longer deals as they will mean you end up paying more interest.
Payment Holidays
Some online boiler installation companies might offer you the opportunity to defer your first payment.
This initial payment holiday is usually between one and three months in length and is designed to help people who need to replace their boiler unexpectedly, to get their finances in order before they start making repayments.
It is a very useful feature if money is tight and you need to get a boiler replacement straight-away.
What If You Have Bad Credit?
The truth is that even online boiler installation companies like Heatable are only offering their best deals, with 0% APR and monthly payments as low as £17 to customers who have a good credit rating.
If you are not in that position, you are going to end up paying more per month and you will definitely incur some interest charges. But that doesn’t mean you are ineligible for finance or that the costs will be so extortionately high as to make them unaffordable.
There are still some good deals available to customers with bad credit ratings, but your options will be more restricted and costs will be a little higher.
The best advice we can give is to head over to the website of Heatable and use their online tools to input your details and see what financial deals are available to you.
You might not be able to get an interest free boiler on finance, but you should still be able to get a good deal.
Comparing Boilers on Finance Quotes: Don’t Pay More Than You Should
The chances are that when you look at buying a boiler on finance, you will focus your thoughts on the monthly repayment amounts and the APR rate.
These are important of course, but they are not the only things you should be thinking about. For example, if the installation costs are not included and these are expensive, any minor savings you make on your finance deal can quickly wipe out any benefits.
It is not unheard of to see a customer with a 0% boiler finance deal end up paying more monthly and over the whole repayment period than another consumer that’s paying 9.9%.
To avoid ending up in this position, you’ll need an itemised quote for your boiler installation. That means you’ll be able to see which quote is best (based on price alone), but also compare things such as:
- Quality – What spec of boiler is being installed? Is it a cheap boiler, or high-quality one from a manufacturer like Worcester Bosch?
- Add ons – Is your installer also fitting a magnetic boiler filter and scale reducer to protect your investment?
- Services – Does the cost include an initial hot flush, to ensure any heating sludge is out of your heating system before the new boiler is installed?
If one installer gives you a quote that seems incredibly cheap, be sure to examine it carefully as it is likely that, once you break down the quote, you’ll quickly see why it is so cheap.
Online boiler installers let you get a fixed online quote fast. Just visit their websites and fill in their online form. You won’t need to submit any personal information and you will be able to see everything laid out with a full cost break-down in just a couple of minutes.
Choosing The Right Boiler Brand For Your Home
Once you have wrapped your head around the details of choosing the right finance package for you, the next step is to make sure you are buying the right boiler brand too.
Boilers come with a wide range of options which make a big difference. These include things like:
- Multiple fuel types (LPG, Gas, Oil, Electric)
- Different KW outputs for different sized properties
- Different sizes. Compact boilers that are suitable for smaller installations (a typical example would be a kitchen cupboard)
You will usually need to get a Gas Safe approved engineer to come and visit your property. They will be able to advise you about the type of boiler that is best suited to your property.
When this gas engineer visits to offer a quote for boiler finance, they will consider things like:
- Property size
- Number of bathrooms
- Number and size of radiators
- Overall hot water and heating demand
They’ll then make a recommendation of the best brands and models for your property. The chances are they will recommend one of the following brands:
- Worcester Bosch
- Viessmann
- Ideal Boilers
- Vaillant
- Baxi
- Potterton
- Grant (Oil-powered boilers only)
The precise recommendation will likely depend on which brands they know best and which they can get the best deal on. All of the above boilers have their merits and you can read our guide to the best boiler brands if you want to know more about them.
If you want to get a Worcester Bosch boiler on finance for the lowest possible prices, our advice to visit an online installation company for a fixed-price quote.
The importance of Boiler Warranties
Once you choose a boiler brand you like, the next important consideration is the warranty. Depending on the brand you choose and the quality of their products, boiler warranties can vary in length from 2 years up to 10 years.
This is a big difference and the length of warranty can often provide a good indication of the longevity and reliability of your chosen boiler.
We always advise people to get a replacement boiler with a minimum of a 5-year warranty and ideally at least7-years of coverage. Anything less than this is asking for trouble really.
If you go onto online sites like Heatable, you will be able to find deals on some boilers that include a 10-year warranty. This is a fantastic offer and well worth building into your choice.
To get these warranties, you’ll usually need your installer to be an accredited installer for that brand. All such offers will come with conditions that can also include things like using approved parts. Make sure you read the small print on your deal to ensure you get the maximum warranty available to you.
How Boiler Finance Can Actually SAVE You Money
Some people can benefit from boiler finance deals a lot more than others; those who have an older boiler that is out of warranty.
If you have a new (ish) boiler that’s still under warranty, your boiler should still be covered by your warranty for parts and labour. It should also be fairly energy efficient meaning that your utility bills should be kept manageable.
This is not going to be the case with older boilers, so you could be losing money unnecessarily every day.
Energy Efficiency
New boilers are almost all, A-rated. And that means they’re energy efficient. And whether your green credentials matter to you or note, energy efficiency means lower gas bills.
If you’ve got an extremely inefficient old boiler (an old G-rated one for instance) and a large property, you’re going to be spending a lot more than you need to be on your gas bill every month.
According to the Energy Saving Trust, it could be setting you back up to £320 per year.
That’s a lot of money in anybody’s book and if you get a boiler on finance, it is quite possible you could end up paying less than that every year in payments.
Boiler Repair Costs
Boilers tend to go wrong more and more as they get older and they always go wrong in winter when you need them most.
If your boiler has a short warranty, it is a way of telling you that the manufacturer is not confident that it won’t go wrong after that period has elapsed. If your warranty has already expired, the chances are it is only a matter of time before something goes wrong.
When that happens, you will have to pay all the costs for parts and labour out of your own pocket and this can come to hundreds of pounds. An average repair is rarely less than £300.
Conclusion
This guide has told you everything you need to know about buying a new boiler on finance. We have explained the factors you need to consider, the best models to go for, and how to fund the best finance deals on the market.
We have also talked about the importance of warranties and given you some top tips on how to save money when buying a boiler on finance.
If you have any problems, comments, or tips for our readers that we have missed out, do share them with us in the comment box below.