Boiler Finance Options
A new boiler is a significant expense. If you can't pay upfront, there are several ways to spread the cost into manageable monthly payments.
0% Interest Finance
Typical APR
0%
Term
12-24 months
Monthly
£100-£200/month
Many boiler installation companies offer 0% finance over 12-24 months. This lets you spread the cost without paying any extra. Typically requires a credit check.
Pros
- No extra cost
- Fixed monthly payments
- Quick approval
Cons
- Short repayment period
- Higher monthly payments
- May require good credit score
Low-Rate Personal Loan
Typical APR
3-7%
Term
3-7 years
Monthly
£40-£80/month
A personal loan from your bank or building society can spread the cost over a longer period. Rates from 3-7% APR depending on your credit score and loan amount.
Pros
- Lower monthly payments
- Flexible terms
- Can shop around for best rate
Cons
- Pay interest on top
- Total cost is higher
- Requires credit check
Boiler Subscription / Rental
Typical APR
N/A
Term
10-15 years
Monthly
£30-£60/month
Some companies offer boiler-as-a-service where you pay a monthly fee that covers the boiler, installation, annual servicing, and repairs. No upfront cost.
Pros
- No upfront cost
- Servicing included
- Repairs covered
- New boiler immediately
Cons
- Most expensive long-term
- You don't own the boiler
- Locked into long contract
- Early exit fees
Credit Card (0% Purchase)
Typical APR
0% then 20-25%
Term
12-28 months (0% period)
Monthly
Flexible
If your credit card offers a 0% purchase period, you can pay for a smaller boiler installation and clear the balance interest-free. Best for amounts under £3,000.
Pros
- Flexible repayments
- No interest in 0% period
- Section 75 protection
Cons
- Risk of high interest after 0% ends
- Credit limit may not cover full cost
- Needs discipline to clear balance
Total Cost Comparison
Based on a £3,000 boiler installation, here's how the total cost compares:
| Option | Monthly | Total Paid | Extra Cost |
|---|---|---|---|
| Pay upfront | — | £3,000 | £0 |
| 0% finance (24 months) | £125 | £3,000 | £0 |
| Personal loan (5 yrs, 5% APR) | £57 | £3,396 | £396 |
| Boiler subscription (10 yrs) | £45 | £5,400 | £2,400 |
Check for grants first
You may qualify for a government grant that covers some or all of the cost before taking on finance.
Grants & Schemes