What are the things you need to know about boiler finance ? In this article are some aspects of boiler finance to help you make decisions.
Many homeowners turn to a boiler finance scheme to spread costs. Choosing a new boiler is difficult enough, but some can find upfront payments (of up to £3,000 or more) impossible. Opting for an affordable monthly price is tempting. But is a finance plan the best way to pay for a new boiler?
If you have enough in savings and your savings interest falls short of the cost of finance, you can afford to pay for your boiler upfront. However, if you are one of the many people who don’t have enough savings or want to save for something else, then look at the finance options available to you.
The ideal scenario is where your new boiler will cost you less in the long run, even with the interest rates that come with a boiler finance agreement.
Low monthly payments
You’ll get low monthly payments using boiler finance to spread the cost over a longer time. You could pay anything from about £17 per month upwards. Add up all the monthly payments to compare with the upfront cost. If the comparison makes you realise you can afford to pay the total price, it’s a good idea to settle upfront.
For lots of people, paying in full isn’t an option. A good boiler finance plan might also include a warranty or service plan. If you want the peace of mind of monthly payments and future maintenance repairs covered, then find the low monthly payments you can afford.
Interest Rates and Credit Scores
Finance deals are dependent on interest rates and credit scores. Low or poor credit scores can make overall payments and interest rates higher. You will pay back more than those with a lower interest rate, but as you can often extend the payments over a longer period, you should be able to find a finance option for your new boiler.
Lots of boiler finance choices
More boiler finance choices than you might think? It pays to look at more than one, but don’t get overwhelmed with the choices. Companies offer finance schemes with many different variations and conditions. There are many boiler finance agreements, so take your time to determine what is best for you.
Is the repayment period vital to you? Perhaps you want to pay for your boiler in 6 months rather than ten years.
Do you have a cash deposit? Some finance options need an upfront payment, while with others, you can buy now and pay later.
Do you know which finance plan is comfortable for you? Compare what’s available to find one that is right for you. If an offer isn’t suitable for you, ask for other options.
A new boiler paying for itself
Is your ideal scenario a new boiler paying for itself? Of course, it is! Replacing an old, outdated heating and hot water system with a modern A-rated boiler could save you significant money. Driving down your monthly heating bills while staying warm and cosy has to be the goal. Reducing energy bills could more than cover a boiler finance payment.
And some providers provide a bonus offer, such as trading in your old boiler to take the value from the total due!
Check the finance agreement small print
Check the finance agreement’s small print, as finance options carry risks like any loan agreement. You must read and understand all the details before you sign and commit to the repayments. Failure to keep up with your monthly payments could damage your credit rating. You are committing to continue paying for the duration of the contract, even if you move home. You must make the payments when the boiler breaks down, even when it is not covered by warranty. Also, before you sign, check whether a large amount (or additional payments sooner) can settle the agreement earlier to reduce the overall costs.
Government grants
Government grants to help with home heating might be available, but they are constantly updating the rules for application. Look at the latest government grants for home heating web pages for the latest criteria. Apply if you can meet the requirements for government boiler grant open schemes.
If you don’t qualify for a grant, paying for a boiler on finance may be your next best option. If you want to spread the cost over several payments to lower your heating bills with a new, more efficient boiler, you could earn money back in savings.
Looking for boiler finance in London?
Are you looking for boiler finance in London? Need a new boiler installed? Look no further than the experts at Plumb London. Our team can supply and install a new A-rated boiler on a finance package that suits you. Contact us for more information.
