New Boilers on Finance 2022: What You Need to Know Jonathan Whiting Last updated on 12 January 2022 8 min read ✔ Homeowners use boiler finance schemes so they can afford a new model✔ Always compare multiple quotes to get the best deal✔ You can get a personalised quote for a new boiler by completing the form aboveIt's no secret that getting a new boiler can leave your wallet feeling a little empty. Unfortunately, getting a boiler is often not a choice, but a necessity, especially if you're left shivering through the winter months.That's where boiler finance schemes come into play – they're here to support you through any money troubles that you might be expecting when buying your new boiler.If money isn't as much of an issue for you, fill in this form to get a free quote from our professional boiler installers.What's on this page?01 | What is a boiler finance scheme?02 | How do boiler finance schemes work?03 | How much will you pay?04 | Is buying a boiler on finance right for you?05 | What are the risks?06 | Boiler finance with bad credit07 | Which companies offer boiler finance?08 | Are there any alternatives?What is a boiler finance scheme?For most of us, the upfront costs and installation of a new, energy efficient boiler can seem quite expensive.Boiler finance schemes are credit agreements that allow you to spread these costs over a set number of months or years.They are also known as flexible finance schemes, or repayment plans. They allow you to essentially pay for your new boiler on a monthly basis.Some schemes are better than others. Always do your homework beforehand to check you are getting the deal that’s fair and right for you!How do they work?Boiler finance plans are currently available from suppliers in England, Scotland, and Wales.To apply for a boiler finance scheme, you'll need to provide some personal details to the company you're applying to. All finance options are considered on an individual basis, subject to your status and credit checks.Once you’ve chosen and successfully applied for a scheme, the lender will pay for the upfront costs and installation of a new, efficient boiler in your home. You agree to pay the lender back, usually via a set amount of monthly payments.There are many boiler finance schemes available to suit your needs, with different repayment plans and terms to suit all budgets.How the overall finance plan works, in terms of how much you borrow from your creditor and and how you pay it back, will vary between different schemes. Some schemes require a deposit upfront, some have higher rates of interest, and others take longer to pay back.You should research a few different options or price plans with different suppliers and look for the best boiler repayment plan for you. Always make sure you can keep up the agreed monthly repayments before signing an agreement.How much will you pay for a boiler on finance?There are a range of boiler finance options and packages available. Some are more competitive than others. Generally, you will pay back more than you borrowed.How much you will pay back depends on:The total cost of your boiler, plus installationThe interest rate applied by your finance schemeAny deposit you pay upfront (or additional charges)The number of months you’ve agreed to spread your payments overHere are some representative examples*:Type of price planCost of boiler and installation borrowedTotal amount of credit chargedTerm of loan (months)Yearly interest rateMonthly repaymentsTotal amount repayable10 years, pay monthly£2,122£1,428.8012011.3%£29.59£3,550.805 years, pay monthly£2,122£665.606011.3%£46.46£2787.603 years, pay monthly£2,122£389.723611.3%£69.77£2511.72*Examples only, based on the same quote for a new boiler with installation, at a fixed interest rate and with no upfront deposit.Is a boiler on finance right for you?Not always! The best option is always to pay for the costs of a new boiler and installation upfront yourself, if you can afford it. Paying for the boiler outright means you will get the best return on your investment.Typical costs for a new boiler installation are between £1,200 to £3000, which not everyone can pay for upfront.Using a boiler finance scheme could be right for you if you:✔ Want to replace your old, inefficient boiler with a new, highly efficient boiler✔ Need to buy and install a new gas boiler✔ Can’t afford the upfront cost of buying a new boiler✔ Want to save on energy costs by installing a new, A-rated gas combi boiler✔ Don’t qualify for the government’s ECO scheme, which can get you a free boiler✔ Are looking for a way to spread the cost of your boiler✔ Can afford to keep up with the monthly repayment planBoiler finance schemes are not ideal if you:✘ Can afford to pay for the costs upfront yourself✘ Qualify for the government’s free boiler scheme✘ Won't be able to afford a repayment planWhat are the risks of boiler finance schemes?As with any loan, you should always be aware of the risks. For instance:You’ll pay back more than the original cost of the boiler and installationIf you don’t research different finance schemes beforehand you could miss out on the best dealFailure to keep up your monthly repayments will affect your credit ratingFinance deals are based on your credit score; those with a lower score are typically offered a higher interest rate and will pay back moreA credit agreement is like a contract, so once you’ve signed it, you’re tied to it for the agreed period of time. Whatever happens during that time, you'll still almost certainly have to pay your repaymentsTaking out a lengthier finance plan means you'll pay more. For example, a 10-year agreement will cost more than a two-year agreementCan you get boiler finance with bad credit?You can buy a boiler on finance even with bad credit, but you probably won’t be accepted by any high street lenders (e.g. banks and building societies). Companies that do offer boiler finance to those with a bad credit history will perform a ‘soft credit check’, meaning you’re much more likely to be accepted.The boiler you’ll be offered will be the same as those with a good credit score, but your monthly repayment plan and deposit contribution will be different. You’ll probably find that your payments are spread over a longer period of time at a higher interest rate, and you’ll pay a lower initial down payment.Always check your credit score before applying for a boiler on finance so you’re aware of any potential issues you might face. Things like missed credit card payments and large outstanding debts will worsen your credit score. Bear in mind that you’ll have more chance of being accepted for finance if your recent credit history has been clean. Did You Know? If you have bad credit, it’s unlikely you’ll get an interest-free boiler on finance. On the other hand, if you have good credit, you could be looking at payments from £17 per month and deals as low as 0% APR (i.e. interest free).Which companies offer boiler repayment plans?There are many companies who offer boiler finance schemes, including most energy providers, heating and boiler installers, and boiler manufacturers.Here are some examples of companies who currently offer boiler finance schemes.Energy CompaniesBritish GasSouthern ElectricE.ONHeating and Boiler InstallersHelp-linkBoiler Plan UKSwale Heating UKHeating and Boiler ManufacturersVaillantGlow-wormIdeal BoilersWorcester-BoschYou can also contact any UK bank or building society and ask whether they can offer you a loan to cover the costs of buying and installing your boiler.Are there any alternatives?There are two alternatives to using a boiler finance scheme or getting a loan. You can:• Pay for the cost of your new boiler and installation upfront. This means you own the boiler outright. This always works out cheaper as there are no interest or additional charges to pay. Check out our guide to learn more about the cost of a new boiler.• See if you qualify for the government’s free boiler scheme. This involves applying for a free grant towards replacing your old boiler with a new, efficient gas boiler. You may be eligible if you are a homeowner, tenant or landlord, receive certain benefits and your boiler is over 10 years old. For more information, check out our guide to the free boiler scheme.What's next?Once you've decided on a finance scheme that suits your needs, it's time to get in contact with our professional installers. You can do this by filling in our short form, and our clients will be in touch with you shortly. Getting a new boiler doesn't need to tighten the purse strings anymore. Jonathan Whiting An eco hero with a head for numbers, Jon’s data visualisation skills are legendary. Whether it’s determining what countries will survive climate change or the animals most at risk from it, he has the planet’s best interests at heart.