Boiler Finance Guide 2024, Everything You Need to Know

If your old heating system has finally given up after years of good service, it indicates that it is time for a new boiler replacement. However, with the current cost of living in the UK, purchasing a new boiler outright can seem intimidating.

Luckily, in 2024 there are many boiler finance options available, to help spread the cost and make this much-needed upgrade more achievable. 

Why Consider Boiler Finance in 2024?

Upgrading your boiler can elevate your home’s energy efficiency, reduce your energy bills, and ensure a warm, comfortable living environment. 

However, the upfront cost of a new boiler installation can be high, with prices ranging from £1,500 to £4,500 depending on the model and installation complexity of the installation.

 Boiler finance allows you to spread this cost over manageable monthly payments, making it easier to afford and so you don’t have to pay it all at once.

What Is Boiler Finance?

Boilers on finance are boiler payment plans that let you spread the cost of a new boiler over several months or years, rather than paying the full amount upfront. 

These plans often come with fixed interest rates, and the repayment period can vary depending on the lender and your agreement.

Common Boiler Finance Options

0% Interest-Free Credit

The option of interest free boiler finance allows you to spread the cost of your boiler with no added interest. Typically, these plans are available for shorter periods, such as 12 or 24 months. It’s an excellent choice if you want to avoid additional costs.

Low-Interest Financing

If you prefer to spread the cost over a longer period, low-interest financing options might be suitable. These plans often extend up to 10 years, with a fixed interest rate that keeps your monthly payments affordable.

Buy Now, Pay Later (BNPL)

With BNPL options, you can delay payments for a set period, usually 6 to 12 months. After the initial period, you can either pay the full amount or choose to spread the payments over a longer term.

Personal Loans

A personal loan from your bank or a credit union can also be used to finance a new boiler. While this isn’t a specific boiler finance plan, it can provide the funds needed for your purchase with flexible repayment terms.

Key Considerations When Choosing Boiler Finance

Interest Rates

Compare interest rates across different plans. The best installation companies offer a variety of different interest plans. A lower interest rate can significantly reduce the total cost of your boiler over the repayment period.

Repayment Term

The length of your repayment term will affect your monthly payments. A shorter term means higher payments but less interest paid overall, while a longer-term reduces monthly payments but may increase the total cost.

Deposit Requirements

Some finance plans require an upfront deposit, while others do not. If you have savings, paying a deposit can lower your monthly payments and reduce the amount of interest you pay.

Early Repayment Options

Check if your finance plan allows for early repayment without penalties. This can be beneficial if your financial situation improves and you want to clear the debt sooner.

How to Apply for Boiler Finance

Choose Your Boiler

Select the boiler that best suits your home’s heating needs. Consider factors like efficiency, size, and warranty, also make sure you choose a reputable manufacturer.

Get Quotes

Get hold of quotes from trusted boiler installation companies. Many companies offer finance options directly, so be sure to ask about their available plans.

Compare Finance Plans

Review the different finance options available, considering interest rates, repayment terms, and any additional fees.

Check Your Credit Score

Your credit score will affect your eligibility for finance and the interest rates you’re offered. Check your credit report and address any issues before applying.

Apply for Finance

Once you’ve chosen a finance plan, complete the application process. This typically involves a credit check and providing details about your income and employment.

Benefits of Boiler Finance in 2024

Affordability

Spreading the cost of your new boiler over several years makes it more affordable and lessens the financial burden.

Energy Savings

Upgrading to a more efficient boiler can reduce your energy bills, which can help offset the monthly finance payments.

Flexible Payment Options

With various finance plans available, you can choose the option that best fits your budget and financial situation.

No Large Upfront Cost

Boiler finance allows you to upgrade your heating system without a significant upfront payment, freeing up your cash for other expenses.

Boiler Finance Cost table

Deposit amount	Plan length	Interest	Monthly cost	Interest charged	Total cost
£500	24 months	Interest-free	£78.54	£0	£2385
£500	36 months	13.9%	£63.59	£404.28	£2693.56
£300	60 months	13.9%	£47.53	£766.91	£3617.91

Making the Right Boiler Finance Choice for Your Home

Investing in a new boiler is a huge decision, and choosing the right finance plan can make the cost more manageable. 

In 2024, there are more options than ever to help you spread the cost and ensure your home stays warm and energy-efficient.

 By understanding the available plans and considering your financial situation, you can make an informed decision that benefits both your home and your wallet.

Ready to Upgrade Your Boiler?

If you’re considering a new boiler in 2024, explore your finance options today. Whether you choose interest-free credit, low-interest financing, or another plan, you can enjoy a warmer home without the financial strain.

FAQ’S

Can I switch boiler finance plans after installation?

It depends on the terms of your current agreement, but refinancing options may be available with some lenders.

Does boiler finance affect my credit score?

Yes, applying for boiler finance typically involves a credit check, and your payment history will influence your credit score.

Can I finance a boiler if I have bad credit?

Some lenders offer boiler finance to those with less-than-perfect credit, but interest rates may be h