The Warm Homes Loan Scheme is a government-supported scheme that helps eligible homeowners and private landlords access more affordable finance for eligible home energy improvements.
Many households want to install cleaner energy technologies but may find the upfront costs difficult to meet. The scheme is intended to help eligible customers spread these costs through loan products offered by participating lenders.
Depending on the loan product and scheme requirements, finance may be available for improvements including:
Participating lenders provide the loans and remain responsible for their individual products, interest rates, repayment terms and lending decisions. Applicants must meet the relevant lender’s eligibility requirements and pass its normal affordability and creditworthiness checks.
Customers do not apply to the Government for a Warm Homes Loan. Applications are made through participating lenders, including directly with a lender or, where available, while arranging finance through an installer, retailer or mortgage provider.
Before taking out a loan, customers should consider the full costs, repayment terms and whether borrowing is suitable for their circumstances. Loan approval and eligibility cannot be guaranteed.
Find out about eligibility, participating lenders and how to apply on www.gov.uk/warm-homes-loan-scheme
Further information about the scheme is available below, along with answers to FAQs.
The Warm Homes Loan Scheme is a government-supported scheme designed to make borrowing for eligible home energy improvements more affordable.
Participating lenders will offer discounted loan products to help homeowners and private landlords spread the upfront cost of installing eligible technologies. Lenders will remain responsible for applications, affordability checks and lending decisions.
Many households want to improve their homes but may be unable to meet the upfront cost of making home energy improvements.
The scheme aims to make eligible improvements more affordable by helping households spread the cost through loan repayments.
No. The Warm Homes Loan Scheme provides access to finance that must be repaid under the terms agreed with your lender.
Government support will help participating lenders reduce borrowing costs, but you will remain responsible for repaying the loan.
The scheme will be available across the UK through participating lenders. The products available and the geographical areas covered may vary between lenders.
For the latest information about:
visit the official GOV.UK scheme page and participating lenders’ websites.
You may be able to apply if:
Different lenders may have different eligibility requirements.
No. Applications must be made by the property owner.
A private landlord may apply for eligible improvements to a property they own. The landlord would be responsible for taking out and repaying the loan.
Having an existing mortgage or another loan does not automatically prevent you from applying.
Each lender will assess your application individually and consider your existing financial commitments as part of its creditworthiness and affordability checks. You should contact the lender for details of its requirements.
No. All applications are subject to:
Participating lenders, rather than the government, will decide whether to offer you a loan.
You can still consider the available products, but approval is not guaranteed. Participating lenders will carry out their usual creditworthiness and affordability assessments before deciding whether they can offer you a loan.
A loan will not be the right option for everyone. You should check here whether you may be eligible for grant-funded or other government support before deciding to borrow.
You should only take out a loan if you understand the terms and are confident that you can afford the repayments.
Depending on the products available, you may be able to apply:
The process will be similar to applying for any other finance. In every case, a participating lender will assess your application.
The scheme is intended to support eligible improvements, including:
You may be able to use a loan for one eligible improvement or a combination of eligible improvements.
The Warm Homes Loan Scheme is designed to help consumers save energy through home energy improvements. Standalone air conditioning systems generally use additional energy to cool a home, so the are not currently eligible under the scheme.
Heat pumps are included because they provide an energy-efficient alternative to fossil fuel heating and support the transition to cleaner home heating.
The department will continue to review the home energy improvements that are currently eligible under the scheme.
No. Insulation measures are not currently funded through the Warm Homes Loan Scheme.
Other government schemes may provide support for insulation and other home energy improvements, particularly for eligible lower-income households, you can find out more here.
No. Replacement windows and replacement fossil-fuel heating systems are not eligible under the scheme.
Reasonable supporting work may be covered where it is necessary to install or operate an eligible improvement effectively. For example, this could include associated electrical work.
The work must remain within the relevant cost cap. The scheme is not intended to pay for general home repairs or renovations that are unrelated to the eligible installation.
No. Self-installation is not permitted. Eligible work must be completed by an installer with the appropriate MCS certification.
This will depend on the lender and finance product.
For many personal or mortgage-related loans, you may be able to choose your own appropriately MCS-certified installer. If finance is offered through a retailer or installer, you may need to use an installer connected with that finance product.
You must use an appropriately MCS-certified installer Find An Installer - MCS for the technology being installed.
You should check that the installer holds the correct certification before agreeing to any work. Some lenders or finance providers may also work with specific installers or retailers.
It is also a good idea to obtain quotes from multiple installers before making a decision. This can help you compare costs, proposed solutions, warranties and service levels to ensure you can choose the option that best meets your needs.https://mcscertified.com/find-an-installer/
For a standard personal loan, you will need a quote from an appropriately MCS-certified installer before applying for finance.
The process may be different if finance is offered through a participating retailer or installer, for example a point-of-sale loan. You should check what is required with your chosen lender or finance provider.
This will depend on the lender and the type of loan.
For some mortgage-related products, you may need to apply through your existing mortgage provider. For unsecured loans, you may not need to be an existing customer. Each lender will set its own requirements.
A list of participating lenders and information about how to apply will be available through official government information and participating lenders’ websites.
Installers can explain the home improvements they offer, provide a quote and tell you about the installation process. They can also direct you to official scheme information and participating lenders.
However, an installer cannot tell you which loan is best for you or give financial advice unless they are authorised to do so.
The scheme does not require you to have an Energy Performance Certificate or meet a minimum EPC rating before applying.
However, individual lenders may include EPC-related requirements as part of their products.
An MCS-certified installer will carry out the technical assessment required for the proposed installation and consider whether the improvement is suitable for your property.
You may also wish to obtain independent home energy advice before deciding which improvements are right for you. If you live in England and Wales can find out more here.
No. The performance of an installation and any savings achieved will vary depending on:
Individual savings cannot be guaranteed. You should not assume that savings will cover the cost of your loan repayments.
Consider obtaining independent advice and carefully review the expected costs and benefits before deciding to borrow.
Yes. You can use a Warm Homes Loan alongside Boiler Upgrade Scheme and Home Energy Scotland grants, where eligible.
If you are eligible for a grant-funded scheme, this may be a more suitable option because grant funding does not normally need to be repaid.
Check what support is available before committing to a loan. You must not use a Warm Homes Loan and another government grant to pay for the same improvement except for grants provided by the Boiler Upgrade Scheme and Home Energy Scotland.
Participating lenders must comply with the relevant financial services and consumer credit requirements.
Information for consumers, including how to complain about a firm, is available on the FCA’s website: Consumers | FCA
Eligible installations must be completed by appropriately MCS-certified installers. MCS provides recognised standards and a consumer-protection framework for certified installations.
More information is available on the MCS website: Consumer Homepage - MCS
You should:
Only a participating lender can assess your application and decide whether to offer you a loan.
If you have concerns about suspected fraud, scams or misuse of the Warm Homes Loan Scheme, please email: WHLScounterfraud@energysecurity.gov.uk
Other useful sites for scam awareness:
Contact the installer first if you have concerns about the installation or the quality of the work.
If the problem is not resolved, MCS will be able to provide further support through its complaints and dispute-resolution processes.
More information and support with complaints is available on the MCS website: What to do if things go wrong - Consumers - MCS.
Keep copies of your:
Complaints about your:
should be raised directly with the lender first.
If your complaint is not resolved, you may be able to refer it to the Financial Ombudsman Service, depending on the circumstances.
If your complaint concerns the Warm Homes Loan Scheme itself, rather than your lender or installation, use the official government contact route published on GOV.UK and in the scheme materials.
The amount you can borrow will depend on:
Your lender will explain how much you may be able to borrow and the terms that apply.
There is no single scheme interest rate. Participating lenders set their own rates, eligibility criteria and product attributes, so it is important to compare the finance offers available to find the option that best suits your needs
The interest rate you are offered may depend on:
The scheme is designed to offer a lower interest rate than the lender's equivalent standard product. For products with terms of up to 10 years, the scheme can reduce the market rate by up to 5 percentage points. The reduction may be lower for longer-term products.
Repayment periods will vary between lenders and finance products.
Before you accept a loan, your lender should explain the repayment period, the amount and frequency of repayments, the total amount repayable and any fees or charges.
If your application is approved, you will make repayments to your lender in accordance with your loan agreement.
Before accepting a loan, your lender should explain:
Make sure you understand the repayment terms and are comfortable that you can afford the repayments before accepting an offer.
You may be able to combine several eligible improvements within one loan application.
You may also be able to apply for another loan at a later date for a different eligible improvement, subject to the scheme requirements and the lender’s checks.
Contact your lender as soon as possible if you are having difficulty making repayments or think you may miss a future payment.
Your lender will be responsible for processes relating to missed payments and defaults. Before borrowing, make sure you understand what could happen if you do not keep up with the repayments.
Your lender will explain whether you have a right to cancel or withdraw from the agreement and any conditions or timescales that apply.
Read all the information provided by the lender before accepting a loan. If you have already accepted an offer, contact the lender as soon as possible to discuss your options.
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