www.iva.co.uk

Hi just a quick question. Just seen the adverts for the govenment scheme "green deal". I havent looked indepth as yet, my query is, how would we in an IVA stand with this. I ask as one of my concerns since entering the iva is my 30 year old boiler which whilst chugging along is (i have been told) uneconomical. So does anyone know where we would stand if we wanted to take advantage of this scheme.

Funny enough there was an article in this months Which magazine they describe it as very poor value! It thus far has been a flop..

I don't know a great deal about this but I'm not convinced it sounds a very good deal and I would be wary about taking on a long term loan. I'm also not impressed with the fact the loan is attached to the house rather than the person taking it out so any new buyer is landed with the debt.

I'd think very carefully before signing up even if you are able to.

I think I would rather pay for a new boiler, I know they are expensive but I'm just not to sure of all these new "deals" coming out at the moment. The way energy companies are working & the government trying to get some sort of control over them, I don't trust them one bit at present.

As I said boilers are a nightmare when they go wrong, but should one do so in a IVA your IP should be able to help with a payment break.

We had a look into this option a few weeks ago and decided against it....instead we have found a local trader who is willing to fit the new boiler and except payments over four months with no interest added....he does not know us from adam but has built his business on trust and comes highly recommended in this area...all he does is take your bank details as security !
We are fortunate enough not to have to use this facility but for those that aren't able to pay out that type of money from savings it is a good option to have.

Not such a good option for the buyer if you sell your house though - I wouldn't be happy being lumbered with someone else's debt!

I'm just hoping we don't need a new boiler while we live here as we would have to redesign the kitchen or bathroom - the location of our boiler is no longer legal as it's on an outside wall next to an alley. British Gas like to remind us every time they service the boiler!

I agree Skippy but if you have no intention of selling and can committ to four monthly repayments it is a great piece of customer service by that trader....but let's face it a new boiler costing £4000...who has a spare £1000 a month for four months...not many me thinks so the take up is not likely to be that high!

Our boiler is sited on the outside wall above our conservatory (in the spare bedroom) - really want to move it when we replace it but unfortunately the Kitchen wall is not an option due to the conservatory...I no British Gas are hot on telling people what needs to doing as all they are trying to do is gain new business !

But the green deal loan can be repaid in up to 25 years according to the BBC - not a great deal as far as I'm concerned!

The poayment is made through your fuel bills, an assesment is made of the likely savings lets say £30 a month on fuel bills and this is then what is paid via your bill

I don't think it's fair though that, if the loan is allowed to drag on for years, a new owner will become responsible for it. They didn't choose to have the work done so they shouldn't have to pay for it. If it can be repaid over 25 years the chances are a boiler will need to be replaced before the old one is paid for!

This strikes me as another badly thought out scheme that people will be paying for for years!

I agree Skippy - i certainly would not consider buying a house with a secure loan on it !!

There are cheaper options available - wood stove heating /pellet burner etc etc

Well, my new boiler is being fitted today at a cost of £3,000. I did take note of the green deal and it wouldn't have been any good for us so just have to stump up the cash unfortunately.

I was also reading today that companies can charge for an assessment the interest on the loan is up to 9%! This doesn't sound like a good deal for anyone to me!

A new condensing boiler has a life span of less than 10 years, sometime as little as 5 years! They are also only theoretically more efficient to run assuming all the stars are in alignment and it is not a leap year.

Much better to keep your old boiler running for as long as is economically practical.

Imagin getting that new boiler as part of the green deal, you could be still paying for it for over 15 years after you had to replace it again.