If you’ve decided that your boiler is draining your money and probably close to a sticky end, then it’s important to act and replace.
Perhaps you’ve had the boiler engineer out a few times now to make repairs after hearing strange noises in that direction or you’ve woken up in the morning to no hot water.
Whatever the case, it’s time to replace your boiler. And why wouldn’t you want to? With a new boiler you can reduce your bills by an impressive 40% which is over £300 a year.
When you consider the savings you’ll make on having your boiler continually repaired, it’s certainly a wise option.
However, it can be difficult to pull together all the funds to replace your boiler. So what can be done then? A lot will come down to your own financial circumstances, but below we take a look at ways of paying for your new boiler.
1. Pay it all at once
Do you have a nice savings account somewhere which hasn’t been raided in a while? Then now’s the time to go and draw some money out to pay for your new boiler. Of course, it might be easier said than done to stump up £2,300 and this isn’t the option for everyone. However, if you decide to go down the finance route then you’ll end up paying more.
What’s always best is to compare quotes from up to four boiler engineers in your area. This way you can get the best deal and ensure to stretch your money as far as it’ll go.
2. Finance your boiler
If cash upfront isn’t an option, then your next thought may be to consider finance. For many people this isn’t simply an option, but the only way they’ll be able to afford the new boiler. Here, what you have to be aware of is high interest rates. At all costs avoid the companies that advertise on TV with extortionate interest rates. Always read any contract before signing up and see what you’re tying yourself into.
You may want to consider the major energy companies who offer finance options. British Gas and E.ON include flexible monthly payments and costs start from as little as £17 a month. Not bad. For these though you’ll probably need a deposit of around £500.
If you take out a finance option with 11.9% APR you would end up paying back £2,600 on a £1,800 loan, so it’s worth bearing this in mind.
3. Boiler grants
Boiler grants are another fantastic option but be prepared because unfortunately not everyone is eligible to receive one. With grants such as these you’ll need to be receiving benefits in some way, whether this is pension credit, working tax credit or child benefits.
There are a few grant schemes available, such as the Energy Company Obligation, Affordable Warmth Scheme and even the Scottish boiler scrappage scheme (for those north of the border).
4. Take advantage of the Green Deal
The Green Deal is the last option open to you and allows you to make the most of a Government scheme designed to help home’s in becoming more energy efficient. The Green Deal was launched in 2012 and covers a number of home improvements including replacement boilers, solar panels, loft insulation, cavity wall insulation and double glazing.
Essentially, homeowners are issued with a loan worth up to £10,000 to get their home’s energy efficiency up-to-date. A Green Deal assessor visits your home and calculates the areas you can improve to save money and reduce carbon emissions.
These measures will then be implemented after your consent with no initial payments. You’ll then repay the loan with the money saved on bills.
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