Buying a new boiler represents a considerable investment, with homeowners on average paying anything from £720 to £3000 for a new model.
It’s an expense that many people would struggle to pay for unexpectedly, but there are a few different options which may help lessen the load.
Saving for your new boiler
Nothing lasts forever, and if you know your boiler is going to have to be replaced at some point, it can be sensible to put aside a certain amount every month so you have the savings in place when it finally breaks down.
If you can manage to save £25 per month into a household emergency fund, in three years you should have enough to cover a lot of the cost of a replacement boiler, or to meet the cost of another emergency such as burst pipes or a flood.
Boiler cover packages
If you don’t want to go down the route of saving, then another good alternative is taking out one of the boiler cover packages which are offered by most of the large energy companies.
These policies cover repairs to existing boilers and most will either provide a new boiler or will pay a substantial contribution towards a new one if your boiler is beyond repair.
These policies are cheaper at around £7 per month, but they all differ in what is covered and what level of excess you have to pay, so always shop around with a few different companies to see what the best deal is for you and your individual circumstances.
Finance for new boilers
If you’ve no savings and are faced with an unexpected bill for installing a new boiler, it is possible to arrange finance to help you pay off the cost monthly.
Your bank or building society may be prepared to give you loan, and you should always see what loan products are on offer before agreeing to take out finance with the company which is installing your boiler.
Finance packages typically have an APR of around 12%, which is cheaper than putting the cost on your credit card, but often not as good a rate as you can get from your bank.
Most credit agreements arranged through boiler installers will ask for a deposit up front, and you can usually choose the term of the loan – typically three or five years.
Getting the new boiler fitted
If you are taking finance from one of the large energy suppliers or boiler manufacturers to fund the installation of their boiler then you will have to use their fitters to do the work.
If you are paying out of savings or taking a loan from the bank, you have the option to shop around.
Remember the golden rules about contacting at least three local companies and asking them to provide quotes in writing to have the work done, and looking at all of the quotes to compare which one offers the best value for money.
Buying a boiler is not cheap and it’s worth making the effort to ensure you’re getting a good deal.
