Boiler finance may not be as popular as car and home financing, but it sure is a fast-rising trend. Companies have come to acknowledge how a lot of people nowadays prefer to pay monthly installments instead of one-time payments for their newly acquired boilers. But how exactly does boiler financing work? Most importantly, how would you know that this is the right option for you?
Upgrade your central heating at home without spending all your savings with boiler finance[xyz-ihs snippet=”336×280″]The most popular arrangement in boiler financing is “pay-monthly,” where the buyer can choose to pay for the total cost of the boiler, plus applicable interests, through monthly installments spread over a period up to 10 years. With this scheme, the buyer would only need to pay a low up-front cost and then make the subsequent payments every month thereafter. These monthly payments would cover the installments for the remaining cost of the boiler, its installation, and special guarantees, if applicable. Guarantees can differ from one company to another.
For example, one company may include in their standard guarantee or warrant the cost of parts and labor for repairing your boiler when it gets broken within the prescribed guaranteed period. In some cases, the guarantee may also include the cost of annual maintenance aside from the cost repair during boiler breakdown.
Now that you have the slight idea as to how boiler finance works, it’s time to assess if this option is indeed right for you. Since financing involves borrowing of money, it will also entail interest charges. Financing is almost always more expensive than other boiler acquisition alternatives, such as buying the boiler outright.
However, since not everyone is capable of shelling out £2000 on the spot, many people still consider financing over outright buying. For comparison, typical financing cost would be around £18 per month, or a total of £2180 for a period of 10 years. Some companies also charge about £22 per month, which sums up to £2640 in 10 years. Nevertheless, having to pay only £18-£22 per month is easier than making a one-time £2000 payment.
Although banks and other lending institutions can give you the financing needed to acquire and install a new boiler at home, you might be more interested to get financing from boiler manufacturing companies themselves. Popular brands like British Gas, Baxi and Help Link have their own financing plans that you can choose from depending on your financial capacity.
Most of their boiler finance plans also cover installation and annual maintenance costs. Most of the time, these companies give better deals compared to banks or other vendors. To be sure, do not hesitate to ask questions regarding your finance deal.[xyz-ihs snippet=”728×90″]