What are my window financing options?

When weighing up financing options, the rate is a big consideration, but bear in mind that you can end up paying more overall with a lower rate but a longer term. If you’ve settled upon a plan to upgrade your windows, you are probably now wondering how you are going to pay for it. Luckily, there are a number of options. As with any loans, these are subject to your credit history. A quick look at your credit score is a good plan before applying.

Everest offers 12.9 per cent from 36 months with deposits from £249. Anglian offers 12.9 per cent from 36 months with deposits from £249. Safestyle offers 12.9 per cent from 36 months with deposits from £249. Britelite offers 12.9 per cent for up to 123 months including three months of buy now pay later. Britannia Windows offers 12 months of buy now pay later at 0 per cent plus a £29 fee. Borrowing is 15.9 per cent if the bill is not paid after the first year. With a shorter three-month deferred payment, a lower rate of 11.9 per cent is offered.

Coral Windows offers interest free payments if you can pay over 24 months and settle half the bill when the work is done. Other borrowing options start at 11.9 per cent. Clearview Home Improvements offer rates of 12.4 per cent for loans of 60 to 154 months. Borrowing £10,000 at 12.9 per cent over three years will cost £2,112 in interest with a monthly payment of £336. Check for any fees and build them not your calculation and make sure any lender is authorised by the finance watchdog the Financial Conduct Authority.

It’s also weighing up how long the guarantee on your windows is before making a final decision. While these rates are higher, the borrowing can work out competitive if you can keep the term of the loan short. This can be a cheaper option, although there will be more paperwork to do. For a loan of £7,500 to £20,000 TSB offers a rate of 5.9 per cent over one to five years, , Novuna Personal Finance offers 6 per cent over the same period and M&S Bank offers 6 per cent over one to seven years.

Borrowing £10,000 over seven years at 6 per cent will cost £2,271 in interest and a payment of £146 a month. Consider using your savings if the interest you would pay borrowing is more than your return for savings in the bank. For instance, a top savings account offering 5 per cent on £10,000 will yield £500 in interest per year. A loan charging 6 per cent per year takes £600, so using savings would make you £100 better off per year.

Naturally you will want to keep a rainy day fund if you can, so the best plan is to do the maths and see what you can afford. If you have enough savings to cover an emergency like a broken boiler, roof leak or loss of employment, then it is worth thinking about. Before you spit out your tea, we don’t mean remortgaging your home just to pay for your windows. This option will only suit those already coming to the end of a fixed-rate deal and looking to remortgage.

Since an upgrade to your home can add to its value, a bank may let you increase your borrowings to pay for new windows or other improvements. Since mortgage rates will typically be lower than those for personal loans, this is a route that could suit many if they own enough of their home to increase the borrowing and the timing works. But beware: while the rate will be lower, you could end up paying more over time since a mortgage can last 25 to 30 years.