3 ways to finance your new boiler
So your problematic boiler is on its last legs. After forking out a small fortune on repair bills, you’ve decided enough is enough. It’s time to replace your old energy sapping boiler with a brand new condensing boiler. You may need new boiler finance.
Of course, it’s a bittersweet pill to swallow. You know replacing your old gas boiler with a new condensing boiler will reduce your energy bills, in some cases by up to 40% a year.
We can help you get a finance quote really easily for when you’re ready to see some options. Factor in the reduction in household emissions and it’s definitely going to be a good investment in the long term. But that’s all well and good – just how do you pay for it in the short term? Depending on your circumstances, there are several options available to help you benefit from a boiler replacement. Let’s take a look at three of the most common methods of paying for a new boiler.
1. Pay for it upfront
Got some spare cash? Whether you raid your savings or offload the cost onto a personal credit card (be aware though, charges will apply if you don’t pay it off!) finding the money to pay for your new boiler upfront may be easier said than done.
The average cost of boiler replacement is around £2,500; it’s certainly not cheap to buy a new energy efficient boiler. Frankly, given the cost involved, paying for a boiler in one lump sum isn’t an option for everyone. But if you can afford to it’s obviously the better option. Taking out finance and paying in instalments on a pay monthly plan means you’ll pay more for it in the end.
Boiler Guide’s Gas Safe Registered heating engineers can provide you with free quotes for a new boiler. Once you’ve entered your details, we’ll arrange for up to three engineers to contact you to arrange a suitable time to provide you with a quote. You then compare quotes and choose the one which suits you best.
2. Finance deals
If you don’t have the financial means to purchase a boiler replacement upfront, there’s always finance. After all, when it comes to expensive purchases, for many people buying something on finance isn’t just an option, it’s often the only option, particularly when money is very tight.
And boilers are no exception. Although you have to be careful of high interest rates (make sure you always, always read the small print!) being able to pay off your purchase monthly is an option for budget conscious households already struggling to pay for utility bills, food and meet monthly rent or mortgage payments. But you will be tied into what can be a very lengthy contract.
Get it on finance
If you want to get a quote for boiler finance, the big energy providers including British Gas, E.ON and many others now offer customers a range of payment options for a new boiler, including flexible monthly payments. There are also companies which specialise in boiler installations for a set monthly fee and no upfront cost. For example, for as little as £17 a month you can get a brand new A-rated Worcester Bosch boiler, complete with a 10 year manufacturer backed warranty. You’ll need to come up with around £500 as a deposit though, and you’ll be tied in to making payments for 10 years.
With a typical APR of 11.9%, on a boiler costing approximately £1,800, you’ll end up paying around £2,600.
Fixed boiler monthly payment and maintenance package
You don’t just get the latest boiler and a Magnaclean complete central heating system flush, this pay monthly scheme means all components and labour are inclusive – so no nasty surprises and some may even throw in a smart thermostat so you can regulate your central heating on the move.
One important thing to remember: with these sort of finance schemes, if you decide to move home you’ll still be tied in to making the payments for the length of the finance agreement.
3. Apply for a boiler replacement grant
If you receive benefits such as Pension Credit and Working Tax Credit you might be able to get a boiler replacement through the Energy Company Obligation. Introduced by the Government in 2013, energy suppliers will provide brand new energy efficient boiler replacements to households in England, Wales and Scotland who meet the eligibility criteria.
First introduced as the free boiler scheme, applicants eligible for the Affordable Warmth element of ECO are required to make a contribution, which will depend on how energy efficient their existing boiler and home is. As it stands, only about 10% will qualify for a completely free new condensing boiler.
To be eligible for a boiler replacement grant you must be a homeowner or rent privately. Other conditions also apply. Visit Boiler Grants to check if you qualify for an ECO funded boiler grant. Note that funding for gas boilers is very limited currently (updated January 2017).
So there we have it: 3 ways to pay for your new boiler replacement. Your first step to get started is to request a free finance quote from us here at Boiler Guide.