Finance for Boilers, Plumbing & Heating

Smarter Heating, Sensible Payments

Rising energy costs, stricter efficiency standards, and attractive government incentives are reshaping how Britain heats its homes. If your boiler is limping on or you are weighing up a low-carbon upgrade, the decision no longer hinges on a single upfront payment. Finance can smooth the cost while you choose between a like-for-like boiler swap, a high-efficiency system upgrade, or a heat pump backed by grants.

In 2025 the UK boiler market remains robust, with more than 750,000 gas boilers sold in the first seven months and regular boilers up 6.5% year on year. At the same time, heat pump awareness and sales are climbing, helped by the Boiler Upgrade Scheme in England and Wales providing £7,500 towards installation. Crucially, this is not a niche incentive. Over 25,000 BUS grants have already been paid and the budget has been increased for 2025-2026, signalling strong government commitment and helping households manage upfront costs.

Understanding APR is not just about percentages - it is about knowing what you will pay in real terms. Since 2020, the average cost of a combi replacement has risen roughly 25% after inflation, from about £2,250 to around £2,820. Labour, materials, and supply pressures are driving that change. Finance products can bridge the gap between what you need today and what your budget allows over time. For green upgrades, previous schemes such as the RHI showed how targeted support can shorten payback periods to five years or less. The direction of travel is clear: incentives and finance together are accelerating adoption.

Gas remains dominant across England, with the vast majority of homes connected to the grid. Policy like Boiler Plus has nudged efficiency higher, but understanding the rules and the technology can be confusing. Information gaps persist and many households still underestimate the suitability of renewable heat. That is where clear guidance matters. With a trusted finance broker, you can compare lenders and products, confirm eligibility, and fund the right solution without compromising on quality.

The right finance structure turns a necessary replacement into a planned investment.

If you are planning a boiler swap, a system upgrade, or a heat pump, the following guide explains your options, costs, incentives, and the steps to get approved with confidence.

Who Will Benefit Most

If your boiler is unreliable, inefficient, or out of warranty, finance can help you act before a mid-winter failure. Homeowners in England and Wales considering heat pumps can combine finance with the Boiler Upgrade Scheme to reduce upfront costs. Landlords managing upgrades across several properties may also prefer predictable monthly payments to preserve cash flow. If you want to improve EPC ratings ahead of a sale or remortgage, spreading payments can make the project more manageable while preserving savings for other priorities.

For households wary of technical jargon, a broker-led approach keeps it simple. We help you compare repayments, check affordability, and choose lenders who understand home heating projects. With installer capacity tight in some areas, securing finance early can keep your preferred installation date on track.

Your Heating Finance Choices

1. 0% interest short-term finance - fixed monthly payments over a short term, ideal for smaller boiler swaps.

2. Fixed-rate interest-bearing loans - spread the cost over 2 to 10 years with predictable repayments.

3. Buy Now Pay Later plans - defer the first payment, then switch to fixed instalments if not settled.

4. Green home improvement loans - tailored to heat pumps and low-carbon systems, often with competitive rates.

5. Secured homeowner loans - larger borrowing against home equity for whole-system upgrades or multiple properties.

6. Flexible overpayment loans - make penalty-free extra payments when energy bills fall or bonuses land.

What It Costs, What You Get, What To Consider

BUS grants apply in England and Wales and are administered by Ofgem. Installers apply on your behalf.

Can You Apply and Qualify

Eligibility depends on the product and technology. For heat pumps in England and Wales, your installer must be accredited and the property must meet scheme rules, including minimum insulation standards in many cases. BUS grants are deducted upfront, reducing the amount you finance. Ofgem audits have helped protect public money, supporting trust in the scheme. For gas boilers, Boiler Plus requirements still apply to new installations, typically involving time and temperature controls and at least one additional efficiency measure. Lenders will assess your affordability, credit profile, and the installer’s credentials. Kandoo, as a UK-based retail finance broker, can introduce you to a panel of lenders so you can compare rates and terms fairly. If you are a landlord or you have multiple works planned, we can also look at solutions that bundle upgrades and spread costs to suit rental income cycles.

From Quote to Switch-On

1. Check your heating needs and project budget

2. Get installer surveys and fixed itemised quotes

3. Confirm eligibility for grants and incentives

4. Apply via Kandoo to compare lender offers

5. Choose term length and monthly repayments

6. Finalise documents and schedule installation

7. Installer completes works and compliance checks

8. Review performance and set smart controls

Advantages and Trade-offs

Read This Before You Commit

Think about your home’s fabric first. Insulation and draught-proofing can reduce the size of the system you need and improve comfort. If you are considering a heat pump, check radiator sizes and pipework suitability, as these influence performance and running costs. Ask your installer for a proper heat loss calculation and an itemised quote so you can compare like-for-like. For finance, look beyond the headline APR to fees, early repayment rules, and whether overpayments are allowed without penalty. Availability matters too. With demand rising, secure both your installer slot and your finance approval early so you are not left waiting in cold weather. Keep records of warranties and servicing schedules to protect your investment and maintain efficiency.

If Not That, Try This

1. High-efficiency boiler plus smart controls and weather compensation.

2. Hybrid heat pump and boiler system to balance costs and comfort.

3. Fabric-first upgrades like loft and cavity insulation before plant replacement.

4. Solar PV with diverter for hot water support where suitable.

5. Interest-free council loans or regional schemes where available.

6. Deferred maintenance plan while saving for a larger upgrade.

Frequently Asked Questions

Q: Is a heat pump cheaper to run than a gas boiler? A: It can be, especially in well-insulated homes. With the BUS grant cutting upfront cost, many households see lower lifetime costs, but outcomes depend on tariffs and design quality.

Q: How much has a boiler replacement gone up in price? A: Inflation-adjusted data suggests around a 25% rise since 2020, with a typical combi now about £2,500 to £3,500 depending on specification and location.

Q: Can I get finance if I am using the Boiler Upgrade Scheme? A: Yes. The grant is applied by the installer and reduces what you need to borrow. Lenders still run affordability and credit checks as normal.

Q: What about scheme integrity and fraud risks? A: Ofgem audits the BUS and has actively protected public funds. This oversight supports consumer confidence and credible installers.

Q: Are there enough qualified installers? A: Skills shortages exist in parts of the UK, so book early. Choose accredited installers and ask about training and certifications relevant to your system.

Q: Do Boiler Plus rules affect me? A: For new boiler installations in England and Wales, yes. Your installer will ensure compliant controls and efficiency measures are included.

Make Your Move With Confidence

Ready to compare finance for your boiler, plumbing, or heat pump project? Kandoo can introduce you to a panel of lenders, so you can choose clear terms, fair rates, and a repayment plan that suits your budget. Get a quick decision and secure your installation date.

Next step: request quotes, check grant eligibility, then apply via Kandoo for tailored finance options.

Important Information

Kandoo is a UK-based retail finance broker, not a lender. Finance is subject to status, affordability checks, and lender terms. Incentives and eligibility can change. Always verify installer credentials and scheme rules before committing.