heat pump financing?

pupmup

Hello

Has anyone got any experience with companies offering long-term payments for heat pumps? We’re looking into replacing an end-of-life oil boiler and have come across a few options. Would really appreciate any feedback if you’ve used or looked into any of these:

EDF - have got a 0% loan but only over 2 years. Possible but I'd prefer not to pay that much each month

Aira - has a payment plan on offer, but only if you go with their own brand? I’ve seen some positive reviews, but the interest rate is around 10% which feels a bit punishing

Fornax - have a bundled finance plus care plan. I couldn’t find a published APR, but back of the envelope maths suggests it's roughly halfway between EDF and Aira

Any experiences welcome, or any other suggestions! I'm sick of the tank in the garden 

FreeBear

I would imagine that most (all) of the finance options you get offered will be provided by a third party. When I was looking to replace a boiler a couple of years back, I had the option of taking out finance with Novuna (part of the Mitsubishi group) - There are other providers available, it just depends on who your heat pump provider has teamed up with.

I ended up using credit card to pay in full which gives me some additional protections (I can go after the CC company as well as the supplier & manufacturer if there is a problem with the boiler). Settled the CC bill with a personal loan at a much better interest rate.

Rodders53

It will cost a substantial sum to remove and dispose of the Kerosene, tank, pipes and old boiler (environmental reasons as much as anything else).   Check if that is being included in the costs of ASHP install you have and that the Govt. Grant for ASHPs is included too.

New oil burner may be circa £3k.

Get competitive quotes from local installers for both Kerosene replacement and ASHP replacement and disposal of old rather than the 'national' chains?

Check out Personal Loans from your Bank(s) as they may have a far better rate for you - or far worse e.g. Personal loan rates and details | Nationwide

In truth you ought to have been saving for this scenario.  It was inevitable.

Nick_Dr1

See if you can get a zero interest credit card for purchases. There are some good 24 month offers on the MSE credit card pages. Or there are some balance transfer cards offering 33 months interest free for an upfront fee of about 3%.
There are some caveats. You will have to be disciplined, as it is a credit card and if you breach the conditions you will pay big time. You will have to pay back by the end of the interest free period or (riskier approach) look for a new card to transfer onwards. Offers may not be available in the future though.

You also need a good enough credit rating to get offered in the first place. It needs to be planned in advance!

This approach is not good if you are not disciplined with money.

Or look for a loan How to get a cheap personal loan – MSE shows the best rates available at the moment, and who is offering them.