See my previous reply, worn out contacts in the relay will generate enough heat to MELT the solder joints. The bad joint is likely to be a symptom, not the cause. I haven't looked properly but I don't see any contact suppressors either, poor design, disposable product.
I understand a relay fault is a possibility, but I consider it a lower probability than a failed solder joint on the board. Note how the spade terminals 9, 10, J and 16 are soldered in to the PCB, and are subject to mechanical stress when the spade connector is attached to them with the wires dangling off. The relay itself is designed for high voltage, high current duty with inductive loads (note the HP rating). It probably was still within its expected operating lifetime.
So called "dry joints" have always been a problem, especially with lead free solder processes. At low voltages a cracked joint just produces an intermittent failure. At mains voltages a cracked joint produces a damaging high power arc. Consider that if you used the heater as ballast you could do arc welding with the mains (see videos from other parts of the world where people actually do this).
In the picture, examine the area around the base of the spade connector. Notice that heat lines radiate outward from it, and notice that on the underside the copper trace has de-laminated and peeled away from it. All of this points to the spade terminal solder joint as being the initial point of failure.
What I suspect has happened is that the solder joint cracked, causing a high resistance point in the circuit. The mains current arced across the gap, melted the solder and further weakened the current path. A large arc developed, fed by vaporizing material from the heat, and spread down the copper trace towards the relay. Eventually the resistance became high enough that the circuit was interrupted and a mess was left behind.
Edit: s/become/became/