Whilst paying for your home or your car on a monthly basis has always been popular, the latest trend in home improvement is to pay for your boiler in the same way. Many companies now offer pay-monthly boiler deals, meaning that you don’t have to hand over all your savings at once, and you can receive a regular service and guarantee on your boiler for a single monthly payment. But what exactly is on offer and it is worth it? We take a look at the pay-monthly boiler trend.
How does boiler finance work?
With a pay-monthly boiler arrangement you can spread the cost of your boiler for up to ten years. You pay a low up-front cost and then pay monthly instalments for the cost of the boiler, installation and guarantee – a boiler plus service plan. This means that for your monthly payments you don’t have to worry about costly repairs. Guarantees vary between companies and manufacturers but many include call-outs and parts, so you don’t have to worry about any additional bills whilst you are paying off your boiler. Some agreements also include a yearly service for your boiler to make sure it stays fully functional.
Is it worth the cost?
It is a more expensive option than buying a boiler outright and you should avoid using boiler finance if possible; however, it can be a good way to avoid paying up to £2,000 up-front (or if you’re British Gas £3500, was the quote I was given online) – especially for those who can’t afford it. Furthermore, monthly boiler insurance and service plans can also be costly. For example, the typical cost of a similar plan offered by British Gas is around £18 per month. Depending on the length of guarantee you select and the services you require, monthly plan provider Pay Monthly Boilers offers plans starting at just under £22 per month when you spread the cost of £1,500 over 10 years. Whilst this is a long tie-in period and you are paying more in the long term, this can be an affordable way to ensure your home has reliable heating and hot water for years to come, and that you can receive boiler care or replacement should you ever need it.
Who is offering finance?
Apart from the big brands such as British Gas and Help Link some manufacturers offer their own finance plans. Baxi seems to be the most promient within search engines but there are also deals from innovative companies such as Flow Energy. Their boiler is a combined heat and power (CHP) appliance and the claim is that it will generate electricity to put back into the home.
However it seems the smaller installation firms are now able to compete with the larger energy companies by offering their own finance. This seems a lot cheaper with better deals.
Beware of the lead generation websites
There are a lot of lead generation sites that dominate some of paid search terms, and although these site are not necessary a bad thing… you need to be aware that you’re not dealing with an installation firm. From what I can grasp, these sites sell your information (or a lead) to several installers.