Boiler Finance, Pay Monthly & 0% Interest Free

Benefits of Buying a New Boiler on Finance

Getting your new boiler on finance can have it’s benefits.

• Your new boiler can become immediately affordable meaning you can have it replaced straight away even if you don’t have the disposable income to pay the entire cost. 

• You can also spread the cost over up to 10 years to allow the lump sum to be broken into much smaller manageable monthly payments.

• Many boiler loans also have a no deposit option available so you can take 100% of the cost on the loan and don’t have to worry about finding the money for a deposit at the point of installation.

Of course, depending on the finance deals available, you may end up paying more than the installation cost due to interest accruing on the loan but boiler loans offer the flexibility to move quickly and restore heating and hot water for your home.

Boiler finance works in the same way as other unsecured personal loans. The lender will assess the applicant based on credit score and a few other items and then decide how much they are willing to lend the individual and at what APR the interest will be charged at. 

Once the boiler is installed, and after the finance is agreed, the lender will pay the boiler installer for the full cost of the boiler and then the applicant will repay the lender a pre-agreed monthly amount over the term of the boiler loan.

At the end of the term the boiler is fully paid for.

How you apply for boiler finance

Firstly choose a boiler installer who offers finance packages, and if you want to get a particular boiler finance offer check your chosen installer offers what you are looking for. Your boiler installer will then be able to act as a broker and submit your application to the lender, which should be a quick and easy online process with a few verification checks. 

The approval process should be fairly instant and then once approved the lender will pay your boiler installer for your new boiler on your behalf and you will pay the lender back in monthly installments until the boiler is fully paid off.

Eligibility criteria

Boiler loan eligibility depends on certain factors including income levels, credit history and more. In order to be eligible for a boiler loan you must normally:

• Be at least 18 or older

• Have been a UK resident for at least 3 years

• Be able to prove your identity with a driver's license / passport and utility bill dated within the last 3 months

• Have a credit check performed with the credit score mapping into the boiler finance deals available and what APR you are offered



• Be able to prove you can afford the monthly repayments through payslips / pension / savings proof

Will I be credit checked for boiler finance?

Yes, a credit check will be performed before boiler finance is offered as this typically decides the APR offered to you on the loan. But don’t worry if your credit score is not perfect, many lenders will still have boiler finance packages available to you, but they tend to be at a higher APR therefore you will end up paying more in interest over the term of the loan.

New Boilers on Finance Deals

Shop around to compare the best deals - below we have collated the best deals on the market at the moment:

Types of Boiler Finance

Boiler finance comes in many forms and varying different interest rates ranging from 0% up to 19.9%. The main types of boiler finance are below and we dive into each in the next sections of the article:

• Pay monthly (interest bearing) boiler finance

• 0% APR interest free credit

• Buy Now Pay Later

• £0 deposit

• Bad credit boiler finance

Pay Monthly boiler finance

Typical interest rates on standard pay monthly boiler finance are between 9.9% and 12.9% APR, with the rate being offered depending on your credit score. Most lenders offer 12, 24, 36, 48, 60 and 120 month loans (1, 2, 3, 4, 5, and 10 years).

Pay monthly boiler finance is just that, it’s a boiler loan which you pay back in monthly installments until it is paid off, typically over 12 to 120 months. You will be able to decide how much deposit you pay, which is usually between £0 and up to 50% of the cost of the new boiler installation. The balance of the cost which is not covered by the deposit will be the loan amount. The monthly payment for the loan will be calculated as per the representative example below.

The bigger deposit you can afford to put down the smaller the loan and crucially the smaller the amount of interest repayable. Also the shorter the term the bigger the monthly payment but the amount of interest you will pay hugely reduces.On a 12.9% APR boiler loan with £1,250 deposit for a £2,500 boiler installation the difference in interest between a 3 year loan and a 10 year loan is nearly £700!

Pay Monthly boiler finance representative example

0% APR Interest Free Boiler Finance

0% APR or interest free credit boiler loans are offered by most of the nationwide boiler installers, with no deposit required and no interest added to the loan. So you only pay for the boiler installation costs and get to split it over 12, 24, 36 or 48 monthly repayments.

They can be a really good deal as you can split the cost of your new boiler into manageable monthly payments and not pay any interest. Of course there will be a credit check required and lenders typically reserve these deals for higher credit scores, but if you can get access to this type of boiler loan it can be a very good deal.

0% Interest Free Boiler Finance representative example

Buy Now Pay Later boiler finance

Buy Now Pay Later boiler finance gives you a payment holiday for the first 6 or 12 months of the loan and usually require no deposit at the time of installation. If you pay back the total amount due after the payment holiday there is usually no interest added to the payment (some times there is an admin fee which has to be paid so read the small print).

Should you choose to pay back via the monthly payments then you will enter into the boiler loan ususally over 1 to 4 years after the payment holiday. It's important to note that interest on these loans usually starts accruing from the start of the payment holiday so if you have a 12 month payment holiday and a 48 month loan at the end of it you will pay back interest for the full 60 months.

In the representative example below there is a 12 month payment holiday and then a 48 month boiler loan at 11.9% APR. The £957 in interest payable includes iinterest that has accrued over the 12 month payment holiday.

Buy Now Pay Later representative example

No Deposit boiler finance

No deposit boiler loans are standard boiler finance but with no requirement to pay a deposit at the time of installation, therefore the whole cost of the new boiler is on finance. These loans are typically offered across 36, 48, 60 and 120 months (3, 4, 5, and 10 years) and APR between 9.9% and 16.9%.

Not having to pay a deposit can be very beneficial, especially if the requirement for a new boiler is an unexpected purchase due to a boiler breakdown. Folding everything into a manageable monthly payment can give certainty and monthly affordability but as interest is charged on the total purchase then toe total amount payable can end up being considerably higher than the cash price of the new boiler. For example a new boiler that costs £2,500 to install on a no deposit boiler finance plan at 12.9% APR over 10 years will end up costing £4,338 of which £1,838 is interest charges.

No Deposit boiler finance representative example

Poor or Bad Credit boiler finance

Boiler loans are available to customers with poor or bad credit. They tend to be offered at higher interest rates, usually 17% to 25% APR, and across 36, 48, 60 and 120 months (3, 4, 5, and 10 years).

The monthly payment can be set at a manageable level although due to the interest rate the total payable can be high. For example a 10 year bolier loan for a £2,500 boiler install with no deposit at 19.9% APR will end up costsing £5,461 of which the interest will be £2,961.

Poor or Bad Credit boiler finance representative example

Summary on Boilers Finance

A boiler loan can be a useful tool to make your new boiler more affordable. As with all finance agreements make sure you do your research on the type of boiler loan that you think is best for your circumstances and then find the right boiler installer who offers you a new boiler at a competitive price and also has the best version of the boiler loan you have chosen. 

Frequently Asked Questions

What is a boiler loan?

A boiler loan or boiler finance is a personal unsercured loan taken out to cover all or part of the cost of a new boiler installation.

How can you finance a boiler?

A new boiler is typically financed through savings, disposable income, a credit card or a boiler finance agreement.

Which boilers can you get on finance?

All boilers should be available on boiler finance as long as your installer offers brokerage services for boiler loans. The different types of boiler loans may not be available on all boilers as some (e.g. 0% APR) cost the boiler installer money to offer to customers.

Do all installers offer boiler finance?

Not all boiler installers offer boiler finance, but all the major brands do, as do many local installers. If you wish to explore boiler finance make sure you only engage with boiler installers who offer the product.

What is APR?

APR stands for Annual Percentage Rate which is how much it costs on a yearly basis to borrow money. Displayed in a standard way It's a legal requirement to be disclosed before any agreement is signed.

Is it worth getting a boiler on finance?

There are many circumstances when getting a boiler on finance makes a lot of sense. If you can secure a 0% APR boiler loan then it makes sense as the finance costs you nothing. Also if the boiler purchase is a suprise and you don't have access to the disposable income to pay it all upfront then the finace deal can make the monthly payments affordable.

Do finance agreements affect my boiler warranty?

No, there is no impact to a boiler warranty from a boiler finance agreement. The boiler warranty is unaffected by which ever payment method you decide to use to purchase your new boiler.