Boilers On Finance, 0% Interest & Pay Monthly Boilers
Boilers on Finance guide: buy now pay later & £0 deposit deals
A new boiler can be an expensive purchase, especially if it is unplanned. So the fact you can widely buy your new boiler on finance can be a relief to many consumers. Boiler finance packages are simply loans taken to pay for your new boiler which then breaks down the total cost into small monthly payments, which can be a lot easier to budget for than a huge lump sum.
All major boiler installers offer boiler finance packages in some shape or form and so do many independent installers, so spreading the cost of your new boiler can be easily in reach. Of course, as will all finance, boiler loans are subject to status, and there are many different types including:
- Interest free / 0% APR
- Buy Now Pay Later
- Interest bearing boiler loans
- No deposit options
- Poor / bad credit finance
Read our comprehensive guide to Boilers on Finance to understand more
Boiler finance explained
Boiler Finance is a loan taken out over a set period of months which enables you to pay for your new boiler in small manageable monthly payments rather than a large one off outlay. You can choose a deposit amount, normally from £0 to 50% of the new boiler cost and then use the finance to cover the balance.
The boiler loan company usually charges interest on the amount you borrow, generally between 7.9% APR and 19.9% APR depending on your credit rating. There are two types of boiler finance available with no interest due which are 0% APR Interest Free boiler finance and Buy Now Pay Later which we'll devlve into later in this guide.
So the amount you pay back is the total loan amount + the total interest charged split into a payment for each month of the boiler finance agreement. We run through some representative examples later on in the guide so you can see exactly how it works.
Can you get boiler finance on all boilers?
In principle yes, you could get finance on any boiler. Obviously it is subject to status but in theory you should even be able to finance a boiler you have previously had installed.
Boiler finance packages are very common in todays market and many consumer utilise them to spread the total cost of their new boiler over 1 to 10 years to make it much more affordable month by month.
What are the different types of boiler finance?
There are various types of new boiler finance available, each with their own benefits and disadvantages. They include:
- Interest Free / 0% APR
- Buy Now Pay Later
- Interest Bearing
- £0 deposit
- Bad / poor credit boiler finance
All these different types of boiler finance are just loans, just like you might borrow from your bank to pay for a wedding, holiday or new car. They all have slightly different pros and cons, so it's important to understand the differences before you choose one.
New boiler finance typical loans available
Each type of boiler loan has slightly different terms, APRs (interest rates) and acceptance criteria. Make sure you review and make an informed decision on which type best suits your circumstances before entering into an agreement.
| Typical Boiler Loans | typical term available | Typical APR | Boiler Finance Quote |
|---|---|---|---|
| Interest Free | 12 - 48 months | 0% | Get a Quote |
| Buy Now Pay Later | 6 - 18 months | 0% | Get a Quote |
| Interest Bearing | 24 - 120 months | 7.9% - 12.9% | Get a Quote |
| Zero Deposit | 12 - 120 months | 0% - 19.9% | Get a Quote |
| Bad Credit | 24 - 120 months | 16.9% - 19.9% | Get a Quote |
What are 0% Interest Free Boiler Loans?
0% APR or interest free boiler finance can be amazing. You can borrow the entire amount to cover your new boiler, not pay any interest on the loan, and repay it over 1 to 4 years (so between 12 and 48 monthly payments). Unsurprisingly not many people put deposits down when using this loan and put the entire amount on finance to fully benefit from the zero interest rate.
Handy tip - 0% APR boiler finance packages cost the boiler installer a fairly big fee they have to pay to the boiler finance company. Why? Well the boiler finance company normally make their money on the interest paid on the loan. So if there is no interest they have to make their money by charging the boiler installer instead. Make sure you get a competitive quote from a couple of boiler installers if you choose an interest free loan just to make sure not all the cost of the fiance package is being passed onto you through the price of your new boiler.
How can I get a 0% Interest Free Boiler Loan?
Simple, choose to get quotes from boiler installers who advertise 0% APR boiler finance deals and then simply choose the interest free finance option. As with all loans they are subject to status and so you will have to be credit checked and the loan offered to you. But don't worry, most installers have other loans available even if interest free isn't.
Why do Installers offer 0% Interest Free Boiler Finance?
Interest free boiler loans are highly attractive to customers for two reasons. Firstly they allow a big lump sum payment to be spread over 12, 24, 36 or even 48 months rather than all upfront. And secondly the loan is totally free from interest. As a tool to help drive new customers you can see why it's appealing to boiler installers to offer this type of loan.
What is Interest Bearing Pay Monthly boiler finance?
Boiler finance plans often have interest rates, normally ranging from 7.9% APR up to 19.9% APR. You will be charged interest on the amount of money you borrow for the boiler loan, and this interest will be added back into your monthly payments. So if you decide to take a £2,000 loan to pay for all or some of your new boiler and choose to pay back the loan over 10 years you will have 120 loan repayment to make. The total amount you pay back will be the loan amount plus the interest, and the monthly payments will be the total (loan amount plus interest) divided by the number of monthly payments. So you can end up paying a lot more in total but the monthly payment can seem very affordable on a monthly basis.
How can I get an interest bearing Pay Monthly boiler loan?
It's fairly staright forward as most boiler installers can offer pay monthly boiler finance so just build this into your boiler quote process and review boiler finance interest rates as well as boiler installation costs and choose the one you feel is right for you.
Why do Installers offer Interest bearing pay monthly Boiler Finance?
Boiler installers offer interest bearing finance packages to their customers as it helps to drive new sales by making a new boiler seem more affordable. And boiler iinstallers generally get paid a commission payment for every customer who chooses to take out a finance plan, therefore also helping profitability.
What is Buy Now Pay Later Boiler Finance?
Buy Now Pay Later can be a fabulous boiler finance offer and is essentially a payment holiday, so if the buy now pay later offer is for 12 months then you can have your boiler installed now and pay for it in 12 months time.
Once your buy now pay later period is over you can either pay the entire amount for your boiler or roll into a finance bearing boiler loan. Handy tip - check the small print! Sometimes when rolling over into a finance bearing loan the provider will back date the interest to the start of the initial agreement so your buy now pay later turns into an interest bearing loan after all.
Why do installers offer Buy Now Pay Later boiler loans?
The payment holiday a buy now pay later loan is attractive to customers as it can give them another year to find the money to pay for their new boiler, so boiler installers utilise it to help attract new customers. Many customers also roll their buy now pay later deal into an interest bearing boiler loan so the boiler installer may also make extra commission from the boiler loan company too.
What is No deposit boiler finance?
No deposit boiler finance is exactly that, it's a boiler loan with no deposit needed. So in essence 100% of the cost of the new boiler is covered by the boiler loan and the customer doesn't need to pay anything upfront.
Obviously if the boiler loan is bigger as none is being paid upfront then the loan will accure more interest and the total cost of the boiler will be more.
Why do installers offer no Deposit boiler finance?
Not paying a deposit upfront for a new boiler can be very appeal to customers, especially if the need for a new boiler has been sudden and ut of the blue. So boiler installers offer the boiler finance option to help drive customers.
And also, if the boiler finance amount is higher then the commission the boiler installer receives from the boiler installer will tend to be higher too, so the customer is happy and the boiler installer makes more money.
Can I get boiler finance deals if I have a bad or poor credit score?
Boiler finance deals are still available to customers with poor or bad credit ratings. The trade off here, as with all finance packages, is the finance company offer loans to people with poor or bad credit ratings but they tend to have a higher interest rate, normally around 15-20% APR and obviously subject to status.
The higher interest rate is typically to offset the additional risk that statistically comes with poor or bad credit ratings.
Boiler Finance Representative examples
Below are 4 representative examples of different boiler finance deals. Use these examples to help work out if boiler finance and which type of boiler finance could help suit your needs.
| Boiler Finance Representative Examples | 0% APR | no deposit | 9.9% APR | 19.9% APR |
|---|---|---|---|---|
| Cash price | £2,000 | £2,000 | £2,000 | £2,000 |
| Deposit | £0 | £0 | £1,000 | £1,000 |
| APR | 0% | 9.9% | 9.9% | 19.9% |
| Amount of Credit | £2,000 | £2,000 | £1,000 | £1,000 |
| Loan Term | 24 months | 120 months | 120 months | 120 months |
| Interest payable | £0 | £1,102.56 | £551.28 | £1,184.42 |
| Monthly Repayments | £83.33 | £25.85 | £12.93 | £18.20 |
| Total Payable | £2,000 | £3,102.56 | £1,551.28 | £2,184.42 |
Subject to status. We offer no advice on finance. These are purely representative examples.
Boiler Finance Deals: which is the best one for me?
So, there's your guide to boilers on finance. We hope it was useful tio lift the lid on all the different types of boiler loans that are available on the market and help with the understanding how they work and the pros and cons of each.
Use the information wisely and best of luck on your hunt for a new boiler.
Frequently Asked Questions
How do you get boiler finance?
You can apply for boiler finance through your boiler installer. The vast majority of installers offer boiler loans (subject to status) and many have the full range discussed in the guide above.
Do you have to use certain installers to get access to boiler finance deals?
In some cases, like 0% APR and Buy Now Pay Later, you will need to find the boiler installer who is offering that particular boiler finance product, but in most cases standard pay monthly boiler finance is available form most installers.
What are the disadvantages to financing a boiler?
Should you take an interest bearing long finance agreement, say 120 months (10 years) then total amount you pay for the boiler will be much more than the cash price to buy the boiler outright on the day due to the interest charged.
Will I get credit scored when applying for boiler finance?
Yes all finance companies will run a credit check when you apply for boiler finance to asses the statistical risk of offering you credit and help set the interest rates offered for your credit profile.
What is a boiler loan?
A boiler loan is simply a finance agreement specifically for your new boiler.
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