Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Loans for boilers
A new boiler not in the budget? Well, we’ve got your back! Here's our guide to finding the right loan for your new boiler.
Compare personal loans for your boiler
Table: sorted by representative APR, promoted deals first
Late repayments can cause you serious money problems. See our debt help guides.
What's in this guide?
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:
- Personal loan. A personal loan is when you borrow a certain amount of money from a lender, and you pay this back over an agreed period of time by monthly instalments, with interest. You may wish to consider a loan to help pay for your boiler as you receive the money upfront.
- Boiler finance schemes. These schemes are offered in the UK by many energy providers and boiler manufacturers. You will be able to pay for your boiler over monthly instalments, with interest.
- Credit cards. You might want to use a credit card to buy your boiler. If you do, you can pay it back over time but there will be a minimum you’ll have to pay each month. Consider using a 0% purchase card with an interest-free period. However, if you have a bad credit rating or no credit history, you may struggle to apply for a credit card or loan. If this is the case, you might want to enquire about a credit builder credit card which is designed for people with no or bad credit history. While the terms are less favourable, you will receive the same perks as a credit card.
- The government boiler grant scheme. Not a loan, but a grant given to people on certain benefits. It’s definitely worth checking to see whether you qualify (see the link in “FAQs”, below). The government grant is part of an energy efficiency initiative to reduce carbon emissions, and will cover the cost of replacing your boiler – with nothing to pay back!
Key features of personal loans at a quick glance
- Loan terms. The terms can include the loan duration as well as interest rates and repayment plans.
- Loan amounts. The amount of money that you are allowed to borrow.
- Get a personalised quote. This will give you an indication about the terms in which a provider will lend you money, and will have no bearing on your credit rating.
- Price matching. Some providers offer a price guarantee to match or beat offers from other providers.
- Monthly repayments. You will be able to repay your loan in monthly instalments.
- Repayment holidays. This is an agreed period with your lender, perhaps either one or two months, where you will not have to make repayments. However, interest will still build up.
- Quick decisions. Providers will usually make a fast decision about whether they will lend you money or not.
- Access to funds. You are able to get access to all the funds upfront.
- Fees. You may incur extra costs, such as interest or late payment fees.
- Perks. With some loans, there may be special benefits such as a 0% interest period.
- Overpayments. If you wish to pay off your loan sooner than agreed, making overpayments is the way to do it. Most overpayments will not incur a penalty so long as you remain within the overpayment limit. It is important to check the small print of your loan before you make an overpayment.
- Early repayment. For many loans, you will incur a penalty and additional costs if you repay your loan in full earlier than expected.
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:
- Loan amount. The amount of money that you can borrow will differ between lenders.
- Interest rate. There are some loans available that are interest-free. If the loans you are considering are not interest-free, make sure you take the interest rate into consideration.
- Fees. You may be required to pay upfront or ongoing costs that will add to the cost of your loan.
- Eligibility criteria. Whilst you may be eligible for some loans, you may not meet the criteria for others.
- APR. The Annual Percentage Rate is designed to present consumers with an annual summary cost for the loan, including any setup fees and interest. Different loans will have different APRs, but it is important to remember that they are only representative, and your costs may be more expensive.
- Loan terms. The length of the loan period, and other terms and conditions, may differ between providers.
- Overall cost. As well as the loan amount, you should also take into consideration any start-up costs and any interest.
- Early repayment. Although you may find yourself in a position to pay off your loan early, some loans charge extra costs if you repay your loan too early.
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.
To apply for a personal loan, you will need to meet the following criteria:
- You are over the age of 18.
- You will be no older than 70 when the loan term finishes.
- You have been a UK resident for over 3 years.
- You have a regular income above £12,000.
- If you are self-employed, you have been so for over 2 years.
- You must have a good credit rating, with no history of bankruptcy or County Court Judgement.
- You hold a UK bank or building society account that is able to pay direct debits.
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:
- Your ID
- Your address details for the past 3 years.
- Your current income and employment details in the form of payslips and bank statements.
The bottom line
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.
FAQs
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.
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