Boilers on Finance:
Boilers are an integral part of every home these days. Being able to heat where you live and have water on demand is something that everyone, not only wants but needs. Their importance is highlighted significantly during the cold winter months where they are necessary for keeping occupants warm even though it is bitterly cold outside.
Cost Of Boilers
While boilers are essential in the home, they do come at quite a cost. Typically, you are looking at paying out a few thousand pounds for the boiler along with somebody qualified to install it. You can’t really afford to scrimp on purchasing an efficient boiler that suits your needs as it can be an investment in the long-term, helping to reduce your average fuel bills going forwards. It’s also imperative that you choose a registered and qualified professional to install the system due to the health hazards that they can pose.
Another good reason to spend on a reliable boiler is that during the winter months they do tend to break down more often. Just when you rely on them the most. Spending that bit extra on a recommended model as well as getting the system serviced annually is important to prevent potential breakdowns.
Buying A Boiler On Finance
With the outlay for having a new boiler installed being pretty hefty, you could be looking at paying upwards of £3000. Some people just cannot afford to pay that all in one go. There are, however, options available out there that allow homeowners to spread the cost through a finance plan. This will allow payments to be made over a number of years. Typically, the lender will pay the upfront costs, and then an agreement is reached for them to be paid back at an affordable rate.
Due to the credit agreement, you will end up paying more than what the original cost was; this is because of the interest that is applied. For example, a boiler costing £2,122 pound originally, paid over three years at an interest rate of 11.3%, could see you pay close to £400 in credit costs. The longer the agreement is for, the higher the repayable amount will be. Some opt to pay over a ten-year period. At the same rate, you could end up paying close to £1400 in credit repayments.
Benefits of Purchasing A Boiler On Finance
Paying monthly can have its advantages though, especially if you can’t pay the full amount all at once. If you have a boiler that isn’t really energy efficient and is costing a lot through your energy bills, it could be ideal to get a new one installed. Paying monthly, especially if your income isn’t great, will allow you to still have the money to spend on the essentials such as a mortgage, rent, utility bills and food shopping. Meeting the repayments on time will also allow you to build up your credit rating by showing that you’re in control of your finances.
Negatives of Buying A Boiler On Finance
Some will see purchasing a boiler on a monthly pay scheme as a bad idea. This is usually because you end up paying a substantial bit extra back due to the interest that is charged. The interest can be rather high, so it pays to shop around. If you don’t do some research first, you could end up missing out on a better deal. Another reason the amount to pay back may be costly is if you don’t have a great credit score when applying. This will mean you are potentially a bigger risk financially, so interest rates will soar. Failing to make payments will also have a negative effect on your credit rating. Due to the nature of the agreement, it is a contract that you are choosing to enter into. This ultimately means if anything happens that you are not covered for, or you move home during the repayment period, you will still be required to pay back what you owe.
Are You Entitled To A Free Boiler?
Luckily, some people are eligible for a free boiler on the government’s free boiler scheme. You have to meet the criteria set to qualify, but even if you don’t meet the requirements in full, you may be entitled to some funding towards a new boiler.
First of all, a resident at the property must be receiving benefits such as universal credit, job seekers allowance, ESA and child tax credits for example. The total household income must also be less than £16,010. Installation of a new boiler must also be justified in terms of generating savings. If, for example, carbon savings will be significant, along with the other criteria being met, the funding cost will be entirely warranted.
If, currently you are not in receipt of benefits and your boiler needs to be replaced, you could consider getting a boiler on finance.
What Is Best For You?
It does pay financially to purchase a boiler and pay all the upfront costs in one go. It will save you money both on your energy bills and through no interest rates. If you can’t afford the large initial outlay, then opt to pay over a number of years, but make sure you shop around first and compare deals. Some people may benefit from getting a loan to cover the costs as the interest rates could be less. Firstly, it is wise to check if you qualify for a free boiler through the government scheme.
Whatever you decide, a boiler is an investment you should definitely consider, helping to reduce your energy bills, improving your home’s energy efficiency that helps the planet and can add to the value of your home when you sell. If you need help deciding on your next boiler and what is best for your home then speak to a friendly member of our team at ASAP Plumbers to offer our expert boiler knowledge so that you can make your next boiler decision with confidence.