Pay Monthly Boilers – Spreading the Cost
Buying a boiler and paying in full can be a costly investment which is why pay monthly boilers are becoming more popular.
While boilers are available to fit a wide range of budgets if you want to buy a brand new one most boilers will set you back cash price at least £1500 with installation.
The cost of getting a boiler installed, it’s not exactly pocket change for the vast majority of people.
Using a pay monthly boilers scheme, therefore, does make a lot of sense.
You can still get a high-quality boiler but won’t have to invest a lot of money right away.
Free boiler schemes are few and far between these days so finance is a great option.
Payment Plans for a New A* Rated Boiler
Many people looking for a cheaper deal on a boiler will buy second-hand, but while this will net you savings on the initial cost it is a very risky and not advisable.
You have no way of knowing how safe a second-hand boiler is and you will still have to pay to get it installed and possibly even repaired.
Buying second-hand when it comes to boilers is often going to result in a bigger more costly issues later on.
With a pay monthly boiler plan you can avoid all of the issues; Purchase a high-quality boiler with a lengthy warranty and potentially save money, e.g the Worcester Bosch, Baxi, Ideal, Vaillant, Glow Worm or Viessmann.
All you have to do is ensure you meet the eligibility criteria and make the monthly repayments.
So, a pay monthly boilers plan is certainly worth pursuing if you need a new boiler but can’t afford to pay the total cost right away.
Let’s take a more in-depth look at how boiler finance plans work.
How do Boilers on Finance Work?
Monthly Payment Plans:
So, how do pay monthly boilers work?
There are going to be few payment variations depending on what plan you go for. The majority of pay monthly boiler plans work in a similar way.
You choose the boiler you want and then arrange how many months it will take to repay it.
Your chosen boiler replacement company acts as a credit broker.
The length of the repayment will have an impact on how high the monthly repayments are.
The less time in your plan the higher the costs will be however, if you opt for a longer plan you will pay less per month but might have added APR (interest) you need to pay as well.
Some pay monthly boilers plans will have additional APR as standard while others may only charge it under certain circumstances.
Some boiler makes and models will offer 0% APR.
You may also need to pay a deposit on the boiler as well on some pay monthly repayment plans. The deposit will usually be around 10% of the total cost. This will be deducted from the total amount repayable.
However, some pay monthly plans won’t require a deposit but will still let you make one anyway which will in turn help lower the monthly cost.
There are a lot of variations to pay monthly boilers which makes them very flexible and versatile ways to pay.
Finance Eligibility – Acceptance, Credit Checks & Interest Rates
The majority of pay monthly boiler plans, you will have to pass a quick eligibility check from a panel of lenders which can usually be done online.
The lenders will usually look at your credit score and employment status to make a judgement on what pay monthly plans are most suitable for you.
If you have a poor credit rating, then you likely will still have some pay monthly boiler options although it might not be the one you want.
With so many different monthly repayment plans available you will likely still have at least a few different options to consider.
Some pay monthly boilers schemes may also require you to still have a boiler in place as well.
So, before applying for any scheme make sure you meet its eligibility criteria and don’t be afraid to look around for different quotes and finance options for your new heating system.
Pay Monthly Boiler Plans – Choosing the right option for you
Pay monthly boiler plans come in many different forms nowadays which is good news for anyone who wants a new boiler.
Below, we have outlined the main three types of monthly repayment plans.
While there are usually going to be variations, most payment options will be based around one of these three main options:
Interest-Free Plans – Pay no extra for spreading the cost
Interest-free pay monthly boiler plans are one of the most popular options.
You won’t have to worry about additional APR however in most cases you will need to pay a deposit and you will usually have a shorter total length on the plan as well.
Typically, they will still be around 12 months but could be as long as 24 months in some cases.
You will likely have higher monthly repayments when compared to longer more flexible plans though so make sure you take that into account.
You will usually be able to pay off the loan quicker if you prefer but some plans may have early repayment fees.
Flexible Monthly Plans – choose the repayment term to suit you
Flexible monthly plans are similar in some respects to interest-free plans however there are some important differences.
Flexible monthly plans are designed to run for a lot longer than an interest-free plan some can go on for as long as 120 months!
This will mean you will have lower monthly repayments but a lot more of them. They are a more expensive long-term choice.
You will also usually be charged APR as well, however there will often be no need for a deposit and the eligibility for this kind of pay monthly boilers plan won’t often be as strict as the alternatives.
You can pay off the plan early in most cases but again there may be an early repayment fee.
Buy Now Pay Later – pay nothing upfront for up to 12 months
Buy now pay later isn’t strictly a pay monthly boiler plan in the traditional sense although it works in much the same way.
Buy now pay later is pretty self-explanatory really, you can purchase the boiler now and start paying back anytime within the 12 months.
If you pay off the total cost of the boiler within the 12 months you can avoid any added interest.
However, if you don’t pay off the total within that timeframe then you will be charged interest and expected to start making monthly repayments.
This will usually be a long-term plan which means smaller monthly payments however you will usually be charged at a higher rate of APR.
Some buy now pay later schemes will also want full payment after the 12 months as well with added interest.
There will be no monthly repayments at all, so with buy now pay later plans you should ideally get it paid off within the 12 months’ timeframe.
Finding the perfect boiler on finance – Get the best prices now
Here at Yorkshire Boilers we aim to get you the best boilers on the best payment plans.
This means lowering your monthly repayments just by using our site.
Get your quotes now from local expert Gas Safe registered engineers.