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If you’ve decided to upgrade your home’s windows, the next question is often the hardest: how to pay for it. With the average UPVC casement window costing around £1,200, the bill for a typical home with eight windows could be just under £10,000. Large windows, wood frames, or sash designs can further increase the cost.
When comparing finance options, it is important not to focus solely on the interest rate. A lower rate spread over a longer period may still cost more than a higher rate for a shorter period.
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Financing through your window installer
Many major window companies offer their own finance packages, which are usually subject to a credit check. Before applying, it’s worth reviewing your credit score and checking for any additional fees. Only use lenders authorized by the Financial Conduct Authority.
Here is a sample of the current representative rates:
- Everest: 12.9% APR over 36+ months, with deposit from £249
- Anglian: 12.9% APR over 36+ months, with deposit from £249
- SafeStyle: 12.9% APR over 36+ months, with deposit from £249
- BrightLight: 12.9% APR for up to 123 months, including three months of “Buy Now, Pay Later”
- Britannia Windows: 0% for 12 months (plus £29 fee); thereafter if settlement is not made within the year then 15.9%; or 11.9% with a short moratorium of three months
- Coral Windows: Interest-free over 24 months if half cost is paid on completion; Other options start at 11.9%
- Clearview Home Improvement: 12.4% APR for terms between 60 and 154 months
As a guide, borrowing £10,000 at 12.9% APR over three years would cost around £2,112 in interest, with repayments of around £336 per month.
Installer finance often has higher rates than a bank loan, but it can still be cost effective if you opt for the shortest possible term. Be sure to take into account the guarantee period of your windows when deciding how long to borrow.
Using a Personal Loan for Window Replacement
A personal loan from a bank or specialist lender can be a cheaper route, although expect more paperwork. Representative examples include:
- TSB: 5.9% for loans of £7,500-£20,000 over one to five years
- Novuna Personal Finance: 6% over one to five years
- M&S Bank: 6% over one to seven years
Borrowing £10,000 at 6% interest over seven years would yield around £2,271 in interest, while monthly payments would be around £146.
Paying for Windows Using Savings
If you have savings, it would be wise to compare the interest you earn with the interest you pay on the loan.
For example, £10,000 in a 5% savings account earns £500 a year. Borrowing the same amount at 6% charges £600 a year in interest – meaning you’d be £100 better off using savings instead.
However, it is important to have an emergency fund for unexpected costs such as boiler failure, roof repair, or sudden loss of income. Do the math carefully to make sure you’re financially secure.
Adding costs to your remortgage
This option is only suitable if you are already approaching the end of a fixed rate mortgage term and are planning on re-mortgaging anyway.
Because energy-efficient home improvements can increase property value, some lenders may allow you to borrow more when remortgaging. Mortgage rates are typically lower than personal loan rates, meaning it can be an affordable way to finance new windows.
But there’s one main caveat: Because the repayment period is so long, you may end up paying significantly more overall.
For example:
- Borrowing £10,000 at 4% interest over 25 years would cost around £5,835 in interest.
- Borrowing £10,000 at 15% interest over five years would cost around £4,273 in interest.
The mortgage route is only cheaper if you can make higher payments and repay the additional borrowings more quickly.
Always check whether your mortgage provider allows fee-free overpayments before choosing this option.