Interest-Free Boilers – Boilers on Finance UK Guide

There’s nothing worse than stepping into the shower to find there’s no hot water. Unfortunately, this realisation is rather swift as you find yourself blasted with ice-cold water!

However, as you fiddle with the taps, praying the boiler will kick in and provide the steamy shower you were hoping for, you realise with a sinking feeling it’s probably time for a new boiler.

While this may seem the obvious solution to your cold water and heating issues, it’s often a considerable problem for your finances. You are not alone; not many people have £1,500-£3,000 as spare change lying around.

Yes, that’s how much the average boiler costs to replace, so it’s not surprising that most people find this sudden cost almost insurmountable! But, not to worry, there is a solution to this rather chilly conundrum, boiler finance.

Let’s be honest boiler finance isn’t something most people have even heard of until their boiler stops working. This is because most people treat their boilers like that phrase ‘out of sight, out of mind.’

Not that you should be staring at your boiler every opportunity you get, but while it works, pumping out heat and hot water on demand, we don’t even consider things like its age or energy efficiency.

Most importantly, we don’t anticipate how an old boiler could let us down right when we’re all soapy and sudsy in the shower!

How Do Buy Now Pay Later Boiler Schemes Work?

When faced with a tired, broken boiler, your first thought will be how to pay for its replacement or repair. But with boiler finance, this cost can be spread using a monthly repayment plan.

This means the lump sum usually required for a new boiler is broken down into manageable portions and repaid each month, much like a finance plan for a car or expensive furniture, minus the interest!

In addition, most monthly boiler schemes have a fixed price and flexible repayment terms that can be set to a time scale that suits your budget and circumstances.

Bad Credit vs Boiler Finance

If you have a poor credit score, don’t stop reading! Many people with a bad credit history automatically assume they won’t be approved for finance or a repayment plan for their new boiler.

Fortunately, this isn’t necessarily the case. While most lenders or boiler finance providers require a standard credit check, this doesn’t mean a glowing credit score is required.

Lenders are typically more lenient with boiler finance approval if CCJ’s or IVAs have not occurred within the last 5 years.

What’s Required To Pay Monthly For A New Boiler?

Boiler financing, like other forms of finance, has some specific criteria that homeowners should be aware of (most of them positive!) For example:

Zero Deposit

If you need boiler finance, then chances are you don’t have a handy cash sum lurking in the bank to use as a deposit. The good news is that boiler finance doesn’t typically require a deposit.

However, you can choose to pay up to 50% of the boiler value (loan amount) to reduce your monthly premiums. Whether you choose to pay a deposit is up to you and your financial circumstances.

Extremely Flexible Repayments

Repayment plans for new boilers on finance are incredibly flexible. Most boiler scheme providers offer their clients between 3 and 10 years to pay!

So if you want to pay for your boiler in a flash, you can pay a slightly higher premium, paying off the debt faster and over a shorter term.

However, if you are happy for the payments to tick over and don’t want them to affect your hard-earned cash, you can choose a 10- year repayment term.

As a result, your monthly premiums will be tiny, but obviously, the longer you take to repay, the more interest you may be required to pay.

Zero % Interest Rates

This is the part we are all interested in, interest-free boiler finance! Many boiler finance providers offer those purchasing a new boiler the option of interest-free finance. BUT, this comes with one stipulation, a fixed repayment period.

For many providers, repayment terms for 0% interest boiler finance are twelve months. However, some providers on the market offer 0% interest on boilers with repayment terms of 24 months.

Therefore, it’s best to do your homework when deciding which provider to use when purchasing your shiny new boiler.

How Does 0% Interest Work?

Finance is provided to you in the form of a loan by a traditional lending institution such as a bank or lender. You will only pay for the boiler as no interest is applied for the agreed term.

The term could be 12 or 24 months, depending on your loan provider’s 0% interest boiler finance criteria. Your boiler company pays a subsidy to the bank or lender, eliminating the need to charge you interest.

Interest-Free Boiler Finance At A Glance

  • Standard Credit Check.
  • No deposit.
  • Flexible Repayment 12-24 months, depending on the provider.
  • No penalty for early repayment.

Advantages Of Purchasing A New Boiler On Interest-Free Boiler Finance

  • Covered By Warranties

Repairing an old boiler can be the cause of many financial headaches. Sometimes the parts aren’t available, and the cost of an engineer call out can be pretty pricey.

However, new boilers are typically covered by a warranty, some as long as ten years. This means if it breaks down, requires repair or has any issues, it’s down to the manufacturer to resolve, not you.

In some cases, the warranty will cover a complete boiler replacement if required. Therefore the warranty on a new boiler provides you with peace of mind when things go wrong and saves you from costly repair bills.

  • Improved Energy Efficiency

Older boilers are not as energy efficient as their newer counterparts. A new boiler uses the heat it generates efficiently and produces less waste.

This means it uses less energy to heat your home, thus reducing your energy consumption and energy bills.

Interest Free Boilers – A Final Soap-Sud On The Matter

Old boilers are not only temperamental they are also costly to repair and not as energy efficient as a new boiler.

While a new boiler may seem like a significant expense, it can actually save you money when purchased on 0% interest boiler finance.

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