Boiler Finance Guide

We’re all comfortable with the idea of buying gadgets, cars and homes on finance, however, when it comes to boilers and other home appliances, arranging for a finance deal is not the first thing that comes to mind. Partly because a large portion of boiler replacement outlay is made up by installation cost and paying tradesmen on deferred basis doesn’t sound like a viable option. Yet it is, and boiler finance has grown by leaps and bounds in the last few years with as much as 70% of new boilers installed on finance arrangements.

This is based on stats acquired internally. During the first half of 2019, 70% of new boilers installed by Glow Green were acquired on finance. Breaking this down even further, 81% of finance deals were 0% APR finance* and the remaining 19% accounted for 12 or 60 month 9.9% APR deals*. This, however, is just a generalised assumption based on stats accumulated by Glow Green and may not be a true representation of the whole UK new boiler market.

All customers are advised that boiler credit is subject to status, affordability and a credit check. Please make sure you familiarise yourself with finance representative example, which is displayed in the footer of all product pages on our website.

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Since replacing a boiler is a relatively risk-free home improvement, most lenders are happy to provide the funds making this option available to a relatively wider range of people. Risk free in this context means that a new boiler is backed by the manufacturer warranty and is highly likely to lead to energy savings, unlike, for example solar panels where efficiency and buy-back time depends entirely on the hours of sunshine during the year. That’s why Boilers from just £9.99 per month is a possibility if your credit rating is good. If you need a new boiler, pay monthly. Please note that a substantial deposit is required to achieve a monthly price of £9.99 or similar. The deposit amount will depend on the boiler model and installation circumstances. Please have a look at the representative examples giving you a rough idea as to the actual cost of boiler credit. Also note that Glow Green Ltd act as a credit broker.

Representative Examples

(9.9% APR Offer) Representative Example: Cash Price £2,100. Deposit Payable £1,327. Total Amount of Credit £773. Total Interest £425.80. Total Amount Repayable £2,525.80 Repayable by 120 monthly instalments of £9.99. Representative 9.9% APR (fixed). Rate of Interest 9.9% a year (fixed). Duration of Agreement 120 months. The approval of your application depends on your financial circumstances and borrowing history.

(0% APR Offer) Representative Example: Cash Price £2,100. Deposit Payable £0. Total Amount of Credit £2,100. Total Interest £0. Total Amount Repayable £2,100 Repayable by 24 monthly instalments of £87.50 Representative 0.00% APR (fixed). Rate of Interest 0.00% a year (fixed). Duration of Agreement 24 months. The approval of your application depends on your financial circumstances and borrowing history.

Types of Boiler Finance

Let’s compare 0% finance packages* and 9.9% APR representative fixed finance deals* to find the one that best suits your needs. Generally, you are expected to pay for your boiler within 10 years (120 monthly payments), however, there are other finance deals available starting from 2 years. It mostly depends on how much you’re comfortable paying each month.

Boiler Finance Examples

To give you a rough idea as to what boiler finance looks like, let’s use a random example. In this case, boiler installation costs £2,156 after the trade-in discount. To make life simpler, let’s assume the customer needs finance of £1,000. It means he’s put down a deposit for the remaining sum of £1,156.

We need to find out what the monthly repayments will be and most importantly, what the total repayment will amount to in the end. This is a factor that many people overlook when taking a boiler on finance. It may look all right on a superficial inspection but unless you’re careful, your total credit may turn out to be so big that it will eat up all the potential saving you would have made with your new A-rated boiler.

We’ll look at four examples. The two fixed finance deals are most straightforward – we’ve picked two options – a 3-year loan and a typical 10 year boiler finance product. As you can see, the total repayment and the amount of interest you have to pay over the loan period differs a lot. Although the shorter loan has significantly higher monthly payments, at the end of the period, you will have had a better deal as you will have saved over £400 in interest.

New boiler on finance120 month fixed finance at 9.9% APR36 month fixed finance at 9.9% APR24 month 0% finance
Cost after the Trade-in£2,156£2,156£2,156
Finance amount£1,000£1,000£1,000
Monthly payments£12.93£32.02£41.67
Amount of Interest£551.60£152.72£0.00
Total cost£2,707.60£2,308.72£2,156.00

Boiler Finance

  • Monthly repayments

    Taking on a New Boiler Pay Monthly plan you can expect to make a monthly repayment – £17 per month, £14 per month or even as little as £9.99* (only on the 9.9% representative deal) dependant upon your credit score and other factors. This is partly offset by the monthly savings on your energy bills, a direct result of an energy efficient boiler.

  • Payment Plans

    Our panel of lenders have finance plans to suit your budget. The plans range from 2 years right up to ten years.

  • 0% Interest Free

    In addition to monthly payments, our lenders can also offer 0% interest for up to 2 years subject to status and terms.

  • Zero deposit

    Unlike many competitors, there are options for absolutely no upfront payments, and zero deposit on plans between 3 and 10 years.

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Comparing new boiler pay monthly deals

Boiler finance offers will differ from company to company, even for the same boiler model. This is mainly due to the fact that the installers will use different lenders and will have different methods of working out the final cost. It’s important you compare various offers before you make a decision, especially when it comes to interest free boiler replacement to make sure you’re not hit by hidden charges.

How the Amount of Deposit Affects Your Monthly Repayment

The amount of deposit you pay for your new boiler will affect both your monthly repayment and the total repayment. Let’s look at the 120-month 9.9%APR deal with resulting monthly payments of £9.99, £14 and £17 per month boiler deals.

  • £9.99 per month
  • Cost
  • Amount of Finance
  • Deposit
  • Monthly Payment
  • Amount of Interest
  • Total Repayable
  • £9.99 per month
  • £2,100
  • £773
  • £1,327
  • £9.99
  • £425.80
  • £2,525.80
  • £14 per month
  • £2,100
  • £1083
  • £1,017
  • £14
  • £597
  • £2,697
  • £17 per month
  • £2,100
  • £1315
  • £785
  • £17
  • £725
  • £2,825

Which boilers are eligible?

Subject to status, affordability and a credit check of your finance application, any new Worcester Bosch or Vaillant boiler installed by Glow Green Ltd is eligible for finance.

Customer eligibility criteria?

We will talk you through our full terms and conditions on application, however, here are some of the basic eligibility criteria for boiler finance:

  • Aged between 18 and 80;
  • Must be a homeowner;
  • Must work in the UK for at least 16 hours per week as an employee or as self-employed;
  • Must have been in employment (or self employed) for at least the last six months, or is retired;
  • Is paying the appropriate National Insurance and Income Tax;
  • Has been a permanent UK resident for at least 1 year;
  • Is in a position to pay monthly instalments by Direct Debit;
  • Bank account supplied on application must be in the applicant’s name;
  • Is purchasing the product for their own personal use. Business usage is not permitted with an exception of landlords and holiday homes.

What is Annual Percentage Rate (APR)?

You will have noticed that all finance offers mention an APR which can range from just a couple of percent for long-term secured loans to relatively high percentage on some short-term loans.

The APR represents the annual percentage of your loan. In other words, it shows how much it costs to borrow money. All financial products should specify APR by law to provide consumers with a comparable metric to enable them to make wise financial decisions.

APR will depend on many different factors such as lenders fees, length of loan, central bank rate, credit rating of the customer amongst many other things.

Although it is designed to simplify comparison, many people find APR rather confusing.

Let’s take the same example – £1,000 finance with a 9.9% APR.

9.9 * 1000 / 100 = £99

Does that mean you are going to pay £99 over the course of a year? No, it doesn’t unless you have obtained the so-called “interest only” loan, which is somewhat unlikely for consumer credit environment. In most cases you will be also expected to pay back a certain portion of the outstanding loan amount.

What’s the Difference Between Typical APR and Representative APR?

None. They are just two terms to express the same concept. We don’t use the term “typical” here because it has been subject to misrepresentation in some online publications. A representative APR displays the rate that 51% of the borrowers are paying for that particular financial product. Generally, in consumer credit, there is no guarantee that everyone would be able to achieve such rate. This is why it’s advisable to check your credit rating on a regular basis. In case of boiler finance, we are currently offering two options 0%APR and 9.9%APR and this applies to all customers regardless of their credit rating assuming their finance application gets approved.

How Credit Score Can Affect Your Consumer Finance Application

Generally your credit score may have a significant impact on consumer finance deals that you have access to. Checking your score before a purchase is a good idea because it will give you a chance to rectify potential issues and make sure you may get more favourable terms.

There are three credit reference agencies in the UK – Experian, Equifax and Call Credit – and each agency compiles a different credit score database. In most cases a credit score will be a number ranging from 1 to 999 with the top range representing excellent credit rating and the bottom range – poor score.

Regardless of the agency, your credit score is calculated and built up over time based on your borrowing behaviour, particularly your credit utilisation. If you regularly use more than 30% of your available credit allowance or if you have had debt issues, it will inevitably have an impact on your score.

Other ways to improve your score are updating your voters register every time you move; staying out of trouble as County Court judgements count against one’s credit worthiness, and paying bills on time. It’s also important to plan your finances and use short-term and long-trem budgeting to ensure you’re not borrowing more than you will be comfortable paying back. It is possible to check your score for free. Give it a go and check that you have at least “Fair” credit rating.

For example, increasing your credit score from 700 to 800 before you take out a consumer loan may generally translate into getting a better deal, however, please note that in case of new boiler finance, having a better credit score will not get you a lower APR. Our panel of lenders offer finance deals on a fixed APR basis. However, having a low credit score may impact the decision as your finance application is reviewed by the lender.

Boiler Finance Affected by Credit Rating

Why Choose Finance from Our Lenders

  • Monthly repayments

    Monthly repayments from as little as £9.99 a month* (only on the 9.9% representative deal). This is partly offset by the monthly savings on your energy bills, a direct result of an energy efficient boiler.

  • Payment Plans

    Our lenders have finance plans to suit your budget. Finance plans range from 2 years right up to ten years.

  • 0% Interest Free

    In addition to monthly payments, our lenders may also offer 0% interest for up to 2 years subject to status and terms.

  • Supplied and Fitted by an Award-winning Expert

    “Pay monthly” packages include installation and come with up to 12 year warranty** .

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Your personal information will NOT be shared with any other organisation.

Our Awards

Glow Green is an award-winning expert recognised by a number of industry bodies and associations.

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Glow Green Limited is authorized and regulated in the UK by the Financial Conduct Authority RN: 692433 for credit broking activities. Finance options are provided by a panel of lenders. Terms and conditions apply. Glow Green Limited acts as a credit broker and is not a lender. Glow Green receives commission from the Finance providers. Any credit is subject to application, financial circumstances and borrowing history. Registered in England & Wales. Company Reg No: 07530174 and VAT No: 135032748. Glow Green Limited, Avalon, 5th Floor, 26-32 Oxford road, Bournemouth, BH8 8EZ.

*(9.9% APR Offer) Representative Example: Cash Price £2,100. Deposit Payable £1,327. Total Amount of Credit £773. Total Interest £425.80. Total Amount Repayable £2,525.80 Repayable by 120 monthly instalments of £9.99. Representative 9.9% APR (fixed). Rate of Interest 9.9% a year (fixed). Duration of Agreement 120 months. The approval of your application depends on your financial circumstances and borrowing history.

(0% APR Offer) Representative Example: Cash Price £2,100. Deposit Payable £0. Total Amount of Credit £2,100. Total Interest £0. Total Amount Repayable £2,100 Repayable by 24 monthly instalments of £87.50 Representative 0.00% APR (fixed). Rate of Interest 0.00% a year (fixed). Duration of Agreement 24 months. The approval of your application depends on your financial circumstances and borrowing history.

** The 12 year warranty is only available for customers who have a Worcester Bosch or Vaillant boiler supplied and fitted by Glow Green Ltd and is subject to a Glow Care 100 service contract for the 12 year period.

††Estimated figures based on installing a new A-rated condensing boiler with a programmer, room thermostat and thermostatic radiator controls (TRVs) in a gas-heated detached home from an older boiler without controls. Savings will vary depending on the size and thermal performance of your home. Correct as at May 2019Source: Energy Saving Trust.