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Boiler Finance – A Complete Overview
A modern, energy efficient boiler will not only reduce the carbon footprint of your house, but it is also guaranteed to save you money over time. However, funding the hefty cost of a brand-new boiler outright, makes this a challenging prospect. Although, there is an option, which makes the idea of installing an energy efficient boiler, a realistic one. This is boiler finance, a process where customers make monthly payments to cover the cost of the new boiler. This monthly fee means you avoid that large, outright cost, while still gaining the opportunity to upgrade on your old, inefficient boiler.
Payment Plans Can Help
Whereby, buying a replacement boiler outright remains the cheapest option, as you avoid the long term cost of an interest rate. Discovering that you need a new boiler can catch you by surprise, meaning you might not have the required funds to pay an upfront fee. Therefore, with boiler finance, you get access to a new boiler, even without the need to put down a deposit. There are a variety of boiler finance schemes, each with different repayment plans to suit your individual budget. Securing a boiler on finance, means that to make these monthly payments more affordable, you will need to commit to a long term contract.
These can last up to ten years. For this timeframe, the monthly payments will be lower, but you will have to pay more interest. A longer contract is not just a bigger financial commitment, but it might also disrupt your ability to move house. If you do move house, then you may be left paying for a boiler you no longer have, unless the new homeowners are willing to take on the contract. However, there are shorter contracts available, which last either three or five years, leading to higher monthly payments, but a shorter period of commitment.
Prices May Rise
Depending on the agreed contract with the installer, there is the potential that the required payments will rise with inflation. Once again, this shows that buying a boiler outright is a more cost efficient method. However, if you do not have the capability to buy a boiler, paying monthly for an energy efficient boiler will still massively reduce your energy bills. Other than keeping an eye on how an interest rate and inflation might impact your payments, a pay monthly boiler scheme will not involve any additional charges, that are not mentioned in the contract. The boiler will have been produced by a high-quality manufacturer, while the monthly payments will cover the servicing and any necessary repairs.
You Can Apply
You can apply for a pay monthly boiler scheme if you are aged between 18-85, while having been a permanent UK resident for at least three years. Naturally, it is essential that you generate enough money to pay for your monthly boiler finance plan. Applying for boiler finance online is a simple process. Although, you must have a valid passport, a UK driving licence and a bill dated within the last three months with your name on it. A credit check is also required, when applying for boiler finance. As a working boiler is an essential part of a home heating system, a bad credit history will not necessarily mean that you will be declined a finance plan, as long as you do not have any Individual Voluntary Arrangements or County Court Judgements issued in the last five years.
Homeowners are still able to get a FREE boiler grant or insulation grant via the ECO scheme, which is still available to households that qualify. Warma UK are currently working throughout the UK helping privately owned and rented homes to improve home energy efficiency and save money on rising energy bills.
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