If you're renting your boiler, just make sure that you rewind it before you return it. P.S don't bother.
Recently, the UK boiler market has seen the introduction of the boiler subscription service.
What exactly is a boiler subscription and what does it entail?
Also, how can you apply for one and what does it cost?
What is a boiler subscription exactly?
With the ongoing cost of living crisis, many households may be struggling to make ends meet, let alone make new purchases.
Given that it generally costs between £2,000 and £3,500 to have a new boiler installed, you’ll be glad to know that there are alternatives.
Taking out a loan, using a credit card, or purchasing a boiler on finance are already common solutions to purchasing a boiler while limiting your expenses in the short term.
However, now there is a new option on the block: Boiler subscription.
Put simply, instead of buying a boiler, a boiler subscription allows you to rent a boiler in exchange for paying a monthly fee.
The cost of a boiler subscription generally falls in the region of £40 to £60, although it would depend on the provider.
What does a boiler subscription include?
The exact details will vary depending on the company you opt for, however, you should at the very least receive a modern A-rated boiler as part of your subscription.
Moreover, it will (by law) be installed by a Gas Safe Register engineer.
Here’s what else a boiler subscription may include:
Annual boiler service
Repairs
No call-out fees
Fix or replace the guarantee
Many boiler subscription services will also come with a lower deposit and a lower rate of interest.
As you can tell, a boiler subscription is actually quite different to purchasing a boiler on finance, but is it really better?
Boiler subscription pros and cons
A great way of determining whether a boiler subscription is worthwhile is by looking at its pros and cons (including its pros and cons relative to other options like purchasing on finance or taking out a loan).
Pros of boiler subscriptions
Often a lower monthly cost
With a fee of about £40 to £60 per month, the cost of a boiler subscription is (on average) lower than that of purchasing a boiler on finance which tends to come with a cost of £45 to £90 per month. Loan and credit card repayments are also likely to be higher than that of paying for a boiler subscription. However, it would depend on factors like the duration of the loan/credit card repayments and the amount of interest involved.Lower deposits and rates of interest
While more companies are set to announce their boiler subscription plans, it seems likely that most, if not all will require a very small or in some cases, no deposit. Moreover, they are unlikely to have an associated high interest rate. This only adds to the aforementioned advantage, making a boiler subscription a great solution for short-term savings.Offers more than just a boiler
As touched on, unlike purchasing a boiler on finance, taking out a loan or purchasing with a credit card, a boiler subscription offers a lot more. From the likely inclusion of a free annual boiler service to a fix or replace guarantee, it might be better to understand this type of subscription as a boiler and free support subscription.
Cons of boiler subscriptions
Is the subscription a lease or a traditional finance agreement?
There are two main types of boiler subscriptions available.
Lease (rental) subscriptions are where you make fixed payments each month for a fixed term. You’ll never own the boiler and the rental terms are typically for 10 years
Inclusive finance plans are more like traditional loan agreements where you own the boiler and the terms are shorter (typically 3 or 5 years).
Considerations for lease subscriptions
Ending your lease subscription
On average a boiler subscription plan is likely to last between 8-10 years, although it would depend on the provider in question.
Cancelling your plan will likely incur a charge. In general, these charges will start higher and decrease as the plan advances.
It may also be the case, however, that you won’t be able to cancel your plan in the first year or two. The exact cancellation fees may also vary depending on the boiler in question and not simply the company providing the subscription service.
Usually, when you end the subscription the boiler will be removed and you’ll need to arrange for a new one to be installed.
Moving house
If you were moving house before the end of the subscription period, you’d likely be left with two possibilities.
Transferring your subscription to the new homeowners who purchase your property or ending the subscription.
Paying an early exit fee and arranging for a new boiler to be installed in place of the current one.
Require a more powerful boiler
You may find you’ll need to have a more powerful boiler installed (e.g. because you want to add a home extension).
In that case, you should contact the subscription provider directly and see what can be done and whether or not you’ll have to start a new plan or/and whether a cancellation fee might apply.
Alternatives to lease or rental subscriptions
Lease products aren’t for everyone, which is why some providers offer more traditional solutions which still offer all the benefits without the constraints of lease agreements. One of those products is Heatable One.
These solutions are backed by low-rate lending and generally include servicing, warranty cover, callouts and of course the supply and installation of a new A rated boiler.
The Heatable One plan is available with a £99 down payment and then 60 monthly payments of £49.99.
How does Heatable One work?
Heatable One is a fully inclusive plan which includes a new A rated boiler, serviced annually for the term of the agreement and with unlimited repairs/callouts. How much does Heatable One cost?
You’ll need to make a deposit payment (typically £99) then each month the One plan costs £49.99.
What’s included in Heatable One?
A fully installed A rated high efficiency boiler
A new flue, boiler filter and controller
Servicing for the duration of the agreement
Unlimited callouts and repairs
Workmanship warranty and repairs
Fixed monthly payments with no yearly increases
Will I own the boiler?
With Heatable One, you’ll own the boiler from day one.
Can I cancel?
Yes, all Heatable One contracts can be ended early at any point, you’ll need to settle the outstanding balance plus 30 days’ interest.
How can I sign up?
Heatable’s boiler subscription service (Heatable One) will be launching soon.
Is a boiler subscription worth it?
Honestly, it really depends on what exactly you’re looking for and your current financial situation.
If you are just somewhat tight on money (e.g., you could in theory purchase a boiler upfront right now, but you wouldn’t be left with much savings), then purchasing a boiler on finance would likely be the smarter option than opting for a boiler long term boiler lease subscription.
If you’re looking for an all-inclusive plan which includes servicing and requires a lower upfront downpayment then consider Heatable One. Of course, it’s important to consider the downsides and various strings attached (e.g., cancellation fees).
However, once you carefully consider everything from your financial situation to the pros and cons of each way of getting a new boiler, it shouldn’t be too difficult to make the right decision for you.
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