What are the things you should know about boiler financing? This article discusses some aspects of boiler financing to help you make decisions.
Many homeowners use a boiler financing scheme to spread the cost. Choosing a new boiler is difficult enough, but some people may be unable to make upfront payments of £3,000 or more. It is tempting to choose an affordable monthly price. But is financing the best way to pay for a new boiler?
If you have enough savings and your savings interest is less than the cost of financing, you can afford to pay for your boiler up front. However, if you are one of the many people who do not have enough savings or want to save for something else, consider the various financing options available to you.
The ideal scenario is that your new boiler will cost you less in the long run, even with the interest rates associated with a boiler financing agreement.
Low monthly payments
Boiler finance allows you to spread the cost over a longer period of time, resulting in lower monthly payments. You could pay anything from £17 per month upwards. Add up all of the monthly payments and compare them to the total upfront cost. If the comparison shows that you can afford to pay the full price, it’s a good idea to settle up front.
For many people, paying in full is not an option. A good boiler financing plan may also include a warranty or service plan. If you want to have peace of mind knowing that your monthly payments and future maintenance repairs are covered, find the lowest monthly payments you can afford.
Interest Rates and Credit Scores
Interest rates and credit scores are key factors in financing transactions. Low or poor credit scores can result in higher overall payments and interest rates. You will pay more than those with a lower interest rate, but because payments can often be spread out over a longer period of time, you should be able to find financing for your new boiler.
Lots of boiler finance choices
More boiler financing options than you might think? It pays to look at more than one, but don’t become overwhelmed by the options. Companies provide finance schemes with numerous variations and conditions. There are numerous boiler finance agreements, so take your time deciding which is best for you.
Is the repayment period important to you? Perhaps you prefer to pay for your boiler in six months rather than ten years.
Do you have any cash deposits? Some financing options require an upfront payment, while others allow you to buy now and pay later.
Do you know which financial plan is most comfortable for you? Compare the options to find one that is right for you. If an offer doesn’t work for you, ask for othe options
A new boiler paying for itself
Is your ideal scenario a new boiler that pays for itself? Of course it is. Replacing an old, outdated heating and hot water system with a modern A-rated boiler could result in significant savings. The goal should be to reduce your monthly heating bills while remaining warm and cosy. Reducing energy bills could more than cover a boiler financing payment.
And some providers include a bonus offer, such as trading in your old boiler and deducting the value from the total due!
Check the finance agreement small print
Check the fine print on the finance agreement, as finance options, like all loans, carry risks. You must read and comprehend all of the details before signing and agreeing to the repayments. Failure to make your monthly payments on time may damage your credit rating. You agree to continue paying for the duration of the contract, even if you move house. When the boiler fails, you must make the payments, even if the warranty does not cover it. Also, before you sign, consider whether a large sum (or additional payments) can settle the agreement sooner, lowering overall costs.
Government grants
Government grants for home heating may be available, but the application rules are constantly updated. For the most up-to-date criteria, visit the government’s home heating grant website. Apply if you meet the requirements for the government’s boiler grant open scheme.
If you do not qualify for a grant, financing a boiler may be the best option. If you want to spread the cost of a new, more efficient boiler over several payments, you could save money in the long run.
Eco Heat Wave are specialists in all aspects of plumbing, heating and boiler services across Aberdeen and Aberdeenshire including the surrounding areas. It does not matter if you need a routine boiler service or a full boiler installation, Eco Heat Wave are here to help. For more information email us, call us, or fill in our contact form.
