I used to live on the North Norfolk coast and saw the Northern Lights a number of times. You might have to have rather a long holiday there though before they appeared.
I have seen the northern lights several times and can confirm that they are a very impressive phenomenon and the best are utterly jaw-dropping. I can't find the best links I have seen (I am not on Facebook) but here are some that give you an idea of what is fairly regularly seen in Iceland (play the video shots):
I urge you to have a go at seeing them. You must have darkness, a clear sky and the patience to wait for them to appear - there is never a guarantee that they can be seen. Ideally, you should be away from light pollution.
The northern lights are visible from anywhere of high latitude and, from the UK, the nearest places are any of the Nordic countries. Travel, accommodation, etc. will always cost money and it is "in the eye of the beholder" what is cheap, reasonable, expensive, etc. They are sometimes seen in Scotland and occasionally into northern England. One example is here
As for Iceland being boring, it is so boring that the annual increase in tourist traffic is of the order of 20+%, year on year - hotels are being built at a furious rate and the main international airport terminal is being doubled in size. The annual tourist numbers this year exceed three times the population and, in winter, the British are the most numerous (in the summer Americans outnumber them). Mind you, the fact that Brits will feel warmer there than at home possibly has something to do with it - absolutely every building, vehicle, etc. is permanently heated to past 21 degrees. People go there for anything from seeing the unusual landscape to concerts/festivals and the night life plus everything in between and then work/jobs besides (unemployment of the order of 2.5%). They do not go there to get drunk and fall onto the beach in the blazing sun.
You can put together your own package to any of the countries in question by choosing flights (cheap flight sites) and accommodation (booking.com, airbnb.com, etc.) or else browse for packages, including ones offered by airlines - there are lots of choices.