If you’re in need of some advice when it comes to replacing your boiler you’ve come to the right place. There are different types of new boiler pay monthly deals and you’ll have to find the one that’s suitable for you.
Arranging for finance for a new boiler might seem a little weird to you – we’re all used to having finance when it comes to buying cars, gadgets, and homes – but it really needn’t be. Boilers on finance are quite common and we can offer our customers very good deals – subject to status of course.
In this guide, we look at pay monthly boilers with a deposit and interest-free boiler replacement deals. Do you have a bad credit history or think you won’t pass credit checks? Don’t despair, have a read of this guide:
Boilers on finance
More and more people are buying boilers on finance. A large proportion of the cost of a new boiler replacement is made up of labour costs, but even those costs can be paid for on finance – it really is a viable option. Our figures suggest that more than 60% of new boilers are paid for using finance and deferred payment options.
Replacing a boiler is a risk-free home improvement and a lot of lenders are happy to make the funds available to pay for the cost. If your credit rating is good, you can expect monthly payments as low as £7.23 p/m.
Types of boiler finance
To give you rough idea what you could expect to pay we will run through an example and then show the different payment plans in a table below. Let’s consider a boiler installation cost of £2,156. Now let’s assume the customer is able to pay a deposit of £1,156 and therefore requires finance of £1,000.
We need to first work out the monthly payments and most importantly what the total amount paid at the end of the term will be. When taking on boiler finance, it is vital to know what the total amount repayable will be so you can work out how much interest you’ve been charged. Be careful here as paying too much interest can eat away at potential savings a new A-rated boiler can provide for years to come.
OK, so let’s take a look at 3 examples below. We’ve picked a 3-year finance deal and a 10-year boiler finance deal. We also look at the 0% buy now pay later option.
|New Boiler – Finance||120 months 9.9% APR|
|Amount of interest||£551.60|
|New Boiler – Finance||36 months 9.9% APR|
|Amount of interest||£152.72|
|New Boiler – Finance||24 months 0% APR Finance|
|Amount of interest||£0.00|
What does APR annual percentage rate mean when buying a boiler on finance?
All of the above boiler finance deals mention an APR which is a percentage figure that can range from a few percent for long-term secured loans to much higher percentages for unsecured short-term loans. Whenever you see APR mentioned it just means the annual percentage of your loan.
It calculates how much it costs you to borrow money. If you see financial products offered, they legally need to make it clear what the APR is and also a comparable metric to help enable a consumer to make a wise financial decision.
An APR can depend upon a number of factors such as a lenders fee, length of a loan, and the credit rating of the consumer. APR is meant to aid decision making but in reality, it sometimes leads to confusion.
Can I pay monthly for a new boiler with a bad credit history?
Without a doubt, a bad credit history will have a negative impact on your ability to get a new boiler on finance. Read our guide: Can I pay monthly for a new boiler with a bad credit history?