Has your boiler broken down, or do you find you’re needing to get it repaired more often these days? Maybe you have an old, inefficient boiler that’s using too much gas and costing you money in the long run?
A new boiler is a sizeable but often necessary investment. In addition to being accredited by Worcester Bosch for boiler installation in Chester and other places around the Wrexham area, Xgas works with financing experts Novuna Personal Finance to enable homeowners to pay for a new boiler over time. Below are some of your options.
Can you pay for a boiler on finance?
If you’ve got some wiggle room in your monthly budget, you may want to pay for your boiler over just two years, because this will mean you don’t pay a penny in interest. You simply pay an upfront deposit, with low-deposit options available, and then 24 monthly payments.
As an example, let’s say you have a boiler installed at a cost of £2500, and you choose to pay the minimum 25% deposit. You will first pay £625 for the upfront deposit, leaving you with £1875 in interest-free credit to pay off over the next two years. This works out as 24 monthly payments of £78.13, and then you’re done. Considering that boilers come with a warranty of up to 12 years, the only boiler-related cost you’re likely to incur then is the annual service, which you can get as part of a monthly care plan.
Can you get a boiler and pay monthly?
If you prefer to spread the cost of a boiler over most of its serviceable life, you will incur a much smaller monthly payment. Unlike the previous example, however, you will need to take out interest-bearing credit, so you will ultimately pay more, at least in terms of the face value. The boiler again comes with a guarantee of up to 12 years.
To give an example scenario, let’s say you choose a boiler that costs £1,895. You can pay an optional deposit, and this will reduce amount of credit you need and therefore the cost of it, so you choose to pay £928 up-front. This leaves £967 in credit to pay off over 10 years. At a current rate of 10.9% APR, this equates to 120 monthly payments of £12.99. Over the term of the credit, you will have paid a total of £2,486.80.
Buy now but pay nothing for 12 months
The third and final option means you can have access to a modern, hi-spec boiler without having to pay a penny for a year, after which you’ll make monthly repayments. Your boiler will again come with a warranty of up to 12 years.
For example, say your boiler costs £2,500, and you choose not to pay an upfront deposit. With a seven-year term and an 11.9% APR interest rate, you’ll pay £47.88 each month for the 84 months after your 12-month holiday ends. The total face value cost of this would be £4,021.92.
Should you find yourself able to pay for the boiler before the 12-month holiday ends, however, you can do so without having to pay any interest that’s accrued. The only additional cost over the original price of the boiler will be a £29 fee for early settlement.
What are the conditions for accessing finance options?
You will need to meet some basic criteria to access the above financing options. First, you need to have been resident in the UK for over 12 months and be at least 18 years old. You also need to own the home you occupy and have a bank account that allows payment by Direct Debit. You should be employed for a minimum of 16 hours a week, self-employed, or retired. If you’re a “homemaker” or currently unemployed, this isn’t necessarily a barrier if you co-habit with a partner who works and is willing to consent to the financing. We can also work with anyone on disability allowance.
Unfortunately, we may not be able to work with some people who may have volatile income streams. These include agency and other temporary workers, childminders without a registered nursery or crèche, foster carers and unemployed persons without a suitably employed partner, full-time students other than trainee doctors and nurses, and supply teachers who lack a permanent contract with a certain school.
While it may seem complicated, you can speak to helpful, experienced staff, discuss your options and get a quote without any obligation to proceed.
