How do I pay for a large repair I have not saved for?

A large unexpected repair is where households most often make an expensive borrowing decision, because it is urgent, stressful and often presented alongside a finance offer by the person quoting for the work. Slowing the sequence down by a day and working through it in order routinely reduces the bill, and sometimes removes it altogether.

Safety

Step by step

1. Check whether you should be paying at all.Manufacturer warranty, an extended warranty, home emergency cover on an insurance policy or bank account, buildings insurance for escape of water or storm damage, your rights against a retailer or installer for goods and work not up to standard, or a landlord's repairing obligation if you rent.
2. Get the fault properly diagnosed before pricing anything.A repair priced from a guess is not a price. Pay the diagnostic fee if there is one; it is small relative to the difference between a part and a replacement.
3. Separate what must be done now from what can follow.Ask the tradesperson directly which parts are urgent and which can be scheduled. Most will answer honestly, and staging the work is frequently possible on jobs that were quoted as one.
4. Get a second quote wherever there is time.On anything substantial, quotes vary widely for the same work. Where the situation is genuinely an emergency, use the emergency route first and get the permanent repair quoted properly afterwards.
5. Look at what you already have before borrowing.Sinking funds, savings, an emergency fund. This is precisely what those pots exist for, and using them is not a failure — it is the plan working.
6. Ask about paying the trade in stages.Many will agree to staged payment against completed work, which is also the safest structure for you. Payment plans offered by an installer may be credit agreements, so ask for the total payable and the rate in writing.
7. If borrowing is unavoidable, get free advice first.MoneyHelper for guidance on the options and StepChange, National Debtline or Citizens Advice if money is already tight. All are free and independent. Check any lender is authorised on the Financial Conduct Authority register before signing anything.
8. Then set up the sinking fund so it does not happen again.Once the immediate problem is dealt with, build the replacement schedule and start the monthly provision. This is the moment when the case for it is most obvious.

Tips

• Where the boiler has failed in winter and money is short, contact your energy supplier and ask about support schemes, and register on the Priority Services Register if you are eligible.
• Check whether the failed item is old enough to be worth replacing rather than repairing before committing to an expensive repair, particularly where a repair is a large fraction of replacement cost.
• Keep every quote, invoice, photograph and message. If any of it later becomes an insurance claim or a complaint, the record is what decides it.

Common mistakes

• Accepting finance offered by the tradesperson without comparison — It is a credit agreement arranged at the moment you are least able to shop around. Ask for the cash price and the total payable, and compare before agreeing.
• Paying a large sum up front for work not yet done — Staged payment against completed work is the norm on legitimate jobs. A demand for most of the money before starting is a warning sign, particularly on emergency work.

Questions people ask