How do you finance the cost of a replacement boiler?
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Buying a new boiler and having it installed is not something many of us have the cash reserves to just pay for outright, so it is likely you will need a finance deal to spread the payments.
There are several ways to do this, including Interest Free, Interest Bearing and Buy Now, Pay Later packages. Some firms also offer a boiler rental scheme.
It is important to do the research thoroughly and it can be a complicated business, which will take time you may not have if the boiler replacement is urgent, and you will need to find an installer that is willing to offer the kind of finance you choose.
Interest free packages typically last one to two years, while the interest bearing packages can last from three to ten years with an APR of 9.9%. With the Interest-free option you will typically have to pay a 25% deposit.
While the monthly payments on the interest-bearing option may be lower, and you may not have to pay a deposit, remember you will be paying over a much longer period.
With the Buy Now, Pay Later option you will pay nothing for the first year but assuming repayment over seven years you could be facing an APR of 17.9%.
In all cases, you must use a FCA (Financial Conduct Authority) registered heating company to arrange the finance and you will need an acceptable credit rating.
Renting a boiler means that with a boiler warranty of 10 years you will pay on average £450 more than with the typical interest-bearing finance package. According to the website the heating hub, it will be 12 years before the boiler finally becomes yours.
Given the lifespan of the average boiler with some finance packages you may not actually own the replacement until it is nearing the end of its life.
You should always read the Terms and Conditions of any finance package and should also beware of paying too much for the boiler in the first place (i.e. avoid very expensive quotes which come with super attractive finance – you are probably paying over the odds for the boiler in the first place).
We, along with many reputable local boiler installation and maintenance companies do have a finance package available. You will need to call us to find out more.