How To Fund a Boiler When Your Strapped For Cash
When you are strapped for cash and your boiler breaks down it can be no joke, especially as we normally turn our boiler on when we are experiencing colder weather. When it doesn’t fire up as you expected you can literally be left with a very large bill to pay.
Well there are two ways to pay for a boiler when you have no cash and these are simply down to your financial circumstances.
The Government ECO Scheme
The Government runs an ECO Scheme where subsidised replacement boilers are available via ECO, a Government Scheme which has been set up to help low-income households access home efficiency improvements to reduce the cost of heating their homes, and to reduce their carbon footprints. https://www.ofgem.gov.uk/environmental-programmes/eco/support-improving-your-home
This is known as Home Heating Cost Reduction Obligation (HHCRO)Under HHCRO, obligated suppliers must promote measures which improve the ability of low income and vulnerable household to heat their homes. This includes actions that result in heating savings, such as the replacement or repair of a boiler.
How ECO works
Under ECO, larger energy suppliers fund the installation of energy efficiency measures in British households.
Each obligated supplier has an overall target based on its share of the domestic energy market in Britain.
The obligated energy suppliers work with installers to introduce certain efficiency measures into your home, such as loft or wall insulation, or heating measures.
There are two main obligations to the scheme which are described below
The obligations explained
The Home Heating Cost Reduction Obligation (HHCRO), also known as the Affordable Warmth Obligation, requires energy suppliers to promote the installation of measures that lead to financial savings on energy bills, such as the installation of insulation and heating measures.
You are eligible under this aspect of ECO if you receive at least one of the following benefits and satisfy the relevant income requirements, where applicable:
- Income-related employment and support allowance (ESA)
- Income-based jobseeker’s allowance (JSA)
- Income support
- Pension Credit Guarantee Credit
- Tax Credits (on the condition that the household’s relevant income does not exceed the amount set out in our scheme guidance)
- Universal Credit (on the condition that the household’s relevant income in any of the preceding 12 assessment periods does not exceed the amount set out in our scheme guidance).
However if you do not meet the above criteria then you can use no deposit finance to yourself.
READ THIS!! There is an excellent guide that explains in detail the ECO Scheme here
Buying a Boiler On No Deposit Finance
Clever Energy Boilers, we think we have thought of it all! Our finance partners offer a variety options for you to pay for your boiler. All loans are subject to application and status.
1. Low Monthly Payments
With this finance option you can spread the cost up to ten years with low monthly repayments. You can also make additional payments at anytime, which could reduce the term of the agreement and the total interest payable.
Representative example: Cash price of your boiler £2600. No deposit. Total amount of credit £2600. 120 monthly payments of £37.60 Rate of interest 7.4% per annum variable. Total amount payable £4512. Representative 12.9% APR.
We may receive a commission from our lender.
2. Buy Now and Pay Later
With this finance option you can buy a boiler today with nothing to pay for 12 months. If you repay the agreement in full within the deferral period then there is no interest to pay (an early exit fee may apply). If you do not settle within the 12 months then interest will have accrued from the start of the loan agreement and you will commence 120 monthly repayments.
Representative example: Cash price £2600 No deposit. Total amount of credit £2600 Duration of agreement 132 months (inc. deferral period) 120 Monthly repayments of £55.90 Rate of Interest 14.4% p.a. variable 19.9% APR representative. Total amount payable £6708. Early exit fee £29.
3. Cash or card payment option
And of course, we take cash or bank transfer you can pay for your boiler in full, via our Worldpay secure internet payment, or by debit card which carries no charge (over the phone).
Also by cheque or bank transfer. Please speak to our support team to see which of these options would suit you best.