Boilers on Finance UK – How Does It Work?

Last updated: January 19, 2024

Buy now pay later boiler finance is a potential option available to those struggling to arrange a lump sum amount to replace an old boiler.

There are various boiler finance deals currently available on the market, some allowing you to pay nothing for the first 12 months, which is specifically termed “Buy Now Pay Later Boiler Finance”.

Boilers on Finance Quick Summary:

  • Boiler finance is available from most online boiler installation companies.
  • It allows you to spread the cost of a new boiler installation and pay monthly instalments over several years instead.
  • Some companies do offer interest free boiler finance and require no deposit.
  • Of course, like any finance application, a credit check is part of the application process.
  • Companies like offer boiler finance for bad credit, and interest free on specified models, you can start your application here.

Boiler finance gives you the option to pay the total payable amount in small chunks over the period of 2,5,7 or even 10 years. 

In this guide we will explore some of the most popular boiler finance deals on the market, the approval process and how they vary in terms of interest, amounts you have to pay upfront and more.

We’ll also cover the options and alternatives for those with bad credit, as well as potential boiler grants you may be able to take advantage of.

Why choose boilers on finance?

One of the great benefits to choose boiler finance is that you don’t have to wait until you save an amount to install a new boiler.

You can replace your old boiler with a new one, potentially within a matter of days if you meet the eligibility criteria for the “Buy now pay later” schemes.

The plan is most beneficial when your old boiler is broken down and you need money to replace it straight away. 

You can get a new model of a boiler installed with a very small or in some cases no upfront fee.

A new boiler on finance can potentially pay for itself in the long term, since the energy savings you make can be substantial as new condensing boilers consume way less energy than old non-condensing boilers.

In fact, a new combi boiler is likely to save 20-35 per cent on your gas bills. 

So, in theory, the amount you save on the bills can be utilised to pay the monthly instalment for the boilers.

You are likely to enjoy some other perks as well if choose to install a boiler on finance such as a free 5 year or 10-year warranty, guarantee, insurance, and an annual service package.

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So, rest assured, you will hopefully not have to pay for the expensive repairs or another boiler replacement for a long time.

Who offer the best boilers deals in the UK? Check out our review of online boiler installation companies, boiler brands and the best UK boilers that topped our list concerning new boilers in the current year.

Boilers on Finance Options Available in the UK

There are many boilers finance options available in the market that claims to lessen your financial burden.

First, you need to specify what kind of fuel your boiler use. i.e., gas, LPG, or oil.

The boiler brands offer three main types of boilers to choose from i.e., Combi boilers, heat only (regular boilers) and system boilers.

There are plenty of packages available in the market with the smaller companies offering cheaper rates. 

Here’s a comparison of some of the most popular finance options available in the boiler market.

Boilers on Finance Deals UK Comparison:

British GasInterest Free£00% interest3 years
British GasInterest Bearing£09.9%3, 5 8 or 10 years
BOXTInterest Bearing£0 – 50%9.9%5 or 10 years
Glow GreenInterest Free£00% interest2 years
HomeServeInterest Bearing£09.9%3 to 10 years
E.ONInterest Bearing£07.9%5 or 7 years
Swale HeatingBuy Now, Pay Later10%0% if paid in full after 12 months 14.9%10 years
Swale HeatingInterest Bearing10%9.9%3 or 5 years
Table last updated January 2024.

How does buy now pay later boiler financing work?

As the name suggests “Buy now pay later” financing allows you pay nothing for a limited period of time and then allows you to break down the cost of the new boiler and installation fees into affordable monthly payments.

However, in order to be approved for finance, you will need to apply and be approved, which involves the following three factors:

  • Credit checks.
  • Deposits.
  • Repayment periods.

Are Credit Checks Required?

Unfortunately, a standard credit check is required for all applicants for boiler finance.

However, with an increase in competition among the boiler finance lenders and schemes, people with poor credit also tend to get the advantage of this offer.

In most cases, if you do not have any recent County Court Judgements (CCJs) or Individual Voluntary Arrangements (IVAs) within the last 5 years, pass rates for boilers on finance are quite high.

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The other key factors that can contribute to the rejection of your finance application are Bankruptcy and recent mortgage payments in arrears.

Want to learn about all the factors that contribute to a boiler quote? Check out our boiler cost calculator to understand the latest boiler deals and what is factored into a gas boiler replacement estimate.

Do you need a deposit?

There are some companies and lenders who offer zero per cent deposits but usually have a big APR and require a good credit rating.

As a rule of thumb, large deposits reduce your monthly payments considerably.

What are the boiler finance repayment periods?

Repayment periods are quite flexible in boiler finance. You can choose a 2, 5, 7 or 10-year repayment plan.

However, the bigger the plan is, the higher the interest rates on repayments are.

For example, the interest rate on a 10-year repayment plan will be remarkably higher than a 5-year plan. 

What documents are required?

To apply for the “Buy now pay later” boilers, you must be a UK resident and over the age of 18.

The list of documents that you will be required to support your application for boiler finance is as follows:

  • Proof of residence.
  • Your valid photo ID i.e., Passport or driving license..
  • Proof of income to show your finances to pay monthly instalments.
  • A utility bill dated the last three months of boiler finance.

It is important to note that you must not be over the age of 85 to apply for boiler finance.

Also, your application has a higher chance of rejection if you will be turning 85 before the end of the finance term.  

Best “boiler finance” deals UK

With the presence of competitive finance offers from different companies and lenders, it is hard to choose the right one for you.

Many installers are offering lucrative deals like zero per cent deposits and interest-free repayments.

In most cases, the bigger companies have higher installation fees than the small ones.

British Gas boiler installation

British Gas is recognised as one of the biggest companies when it comes to boiler installation.

The company is currently offering zero deposit, three years of interest-free credit, a five-year warranty with all parts and expert installation by gas engineers.

However, the company has acquired an average rating (3.1/5) on Trustpilot and has often been labelled as “the most expensive” by its users.

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Heatable boiler installation

Heatable offers some amazing finance deals on top boilers.

Rated excellent on trust pilot, the company offers a zero per cent interest rate, flexible monthly repayment options, no fee on overpayments and a 10-year guarantee.

There are many other companies that are offering zero per cent deposit and zero per cent APR over a specific finance period.

They have also acquired a good rating on Trustpilot. These companies include BOXT (4.9/5), E.on (3.4/5), and heating force (3.7/5).

Check out our boiler brand price guides and comparisons:

Boilers on Finance FAQ

Here are some of the most common questions we get asked with regards to boiler finance and other similar pay monthly boiler schemes:

Can you get boiler finance with bad credit?

Typically, the answer to this question is yes, but you will typically have fewer deals available to you and you will often find boiler finance options are more limited.

This means that if you do have poor credit and want to apply for boiler finance, you should expect to pay more interest and be offered less favourable terms than the the typical finance options out there.

Are government boiler grants available?

At present there are two main government boiler schemes available in the UK, these are the Energy Company Obligation Scheme (ECO) and the Boiler Upgrade Scheme (BUS).

The ECO scheme is only offered to those who meet the strict eligibility criteria, while the BUS offers £5,000 towards the cost of installing a biomass boiler only i.e. it can’t be used for new gas boilers.

Wondering how much a new boiler costs? Check out our guide on options available if you need a new boiler but can’t afford it, as well as boilers on finance and government boiler grants here.

Buy Now Pay Later Boiler Schemes Summary

Buy now pay later schemes for boilers is undoubtedly a lifesaver for those who cannot afford boiler replacement outright.

This not only saves you from the stress of arranging money there and then but also gives you the liberty to choose a plan to stretch your monthly payments.

If you are lucky enough to have a good credit rating, you are likely to be eligible for zero per cent down payments and zero APR.

But your poor credit history does not mean that you cannot apply for the scheme unless you have some major issues with your loan/mortgage repayment record.

It is advisable to first choose the right kind of boiler that suits your heating needs and then look for the right lender for you.

Most boiler companies and lenders are offering free online quotes these days.

It’s best to get a quote from different lenders/companies and compare them to choose the plan that suits you the best.