Compare personal loans for your boiler
How can I finance a new boiler?
There are several options available to you when looking for help to finance your boiler purchase. These include:
Key features of personal loans at a quick glance
How should I compare different loans for boilers?
There are several important factors to consider when comparing loans. We’ve listed some of them below:
Am I eligible for a boiler personal loan?
You should only apply for a personal loan to finance your boiler if you are positive that you can meet the repayment terms, otherwise you will face additional costs and it may impact your credit rating if you miss payments.
Exact eligibility criteria will vary depending on the loan provider, but you will typically need to meet the following requirements:
Some providers might set minimum income requirements and some might have a maximum age limit. So it pays to check the terms and conditions carefully.
How can I apply for a loan?
If you have decided that a provider’s loan is right for you, simply fill in the application form for the loan via their website. You will need proof of the following:
Pros and cons of using a personal loan for a new boiler
- Upfront lump sum. You can then use this to pay for your boiler.
- Fixed monthly repayments. Your repayments stay the same for the term of the loan, making it easy to budget.
- Save on equipment. There’s no need to fork out for expensive dedicated hardware or physical card terminals.
- You might be able to make overpayments. This can help you to clear your debt faster.
- Competitive interest rates. Personal loan APRs can be competitive for sums of £7,500 or more.
- A good credit rating is typically required. You’ll need a good credit rating to get the best rates.
- Higher interest rates for smaller sums. If you need to borrow £2,000 to £3,000, interest rates tend to be less competitive.
- Early repayment charges can apply. If you repay the loan early, you might have to pay a fee which could be the equivalent of 1 to 2 months worth of interest.
Alternative finance options
If you’re not sure if a personal loan is the best option for you, you could also think about:
- A 0% purchase credit card. This allows you to spread the cost of your purchase over a number of months interest-free. Just make sure you’ve cleared your balance before the 0% deal ends and interest kicks in. Credit limits are usually lower compared to personal loans, but might be enough to cover the cost of your new boiler.
- A 0% money transfer credit card. Here, you can transfer money from your credit card to your bank account and then use the funds to pay for your new boiler. Again, no interest is charged for a set time, but you must clear your balance before the 0% period ends. There’s usually a transfer fee of around 4% to pay.
- An overdraft. If you’re lucky enough to get a bank account with an interest-free overdraft, this is another option worth exploring, particularly if you don’t need to borrow a large sum. Overdrafts can be quick and easy to arrange, but make sure you don’t exceed your limit.
- A boiler finance scheme. As mentioned earlier, many boiler manufacturers and energy suppliers offer their own finance schemes to help you fund a new boiler, so these could be worth looking into.
If your boiler has packed up and you can’t afford to replace it, don’t panic! There are quite a few options to restore hot water to your household. Whether you’re applying for a loan or a financial scheme, make sure you are aware of the risks and that you can commit yourself to monthly instalments until the loan amount is paid back in full.
Failing to do so could negatively impact your credit score. Hot water that you don’t want to find yourself in.
Frequently asked questions
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