1. About the Scheme
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.
2. Eligibility
You may be able to apply if:
- you own the property you are applying for
- you are a homeowner or private landlord
- the property is in the UK and used for residential purposes
- you meet your chosen lender’s eligibility, creditworthiness and affordability requirements
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:
- affordability checks
- creditworthiness assessments
- the lender’s eligibility requirements
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.
3. Eligible improvements
The scheme is intended to support eligible improvements, including:
- heat pumps aligned with the Boiler Upgrade Scheme
- solar photovoltaic (solar PV) panels
- battery storage systems
- heat network connections (where available)
- certain micro-renewable technologies
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.
4. Applying for a loan
Depending on the products available, you may be able to apply:
- directly through a participating lender
- through a retailer or installer offering finance
The process will be similar to applying for any other finance. In every case, a participating lender will assess your application.
A list of participating lenders and information about how to apply will be available through official government information and participating lenders’ websites.
https://www.gov.uk/government/news/warm-homes-loan-scheme-factsheet
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.
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.
You must use an appropriately MCS-certified installer 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.
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.
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. England and Wales can find out more here. Scotland here. Northern Ireland here.
5. Borrowing and repayments
The amount you can borrow will depend on:
- the improvements being installed
- the relevant scheme cost caps
- the lender’s assessment of your application
- the lender’s product terms and borrowing limits
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 lender and installer you choose
- the lender's assessment of your personal circumstances
- the amount you borrow, the repayment term and other product features
- whether the finance is secured against your home
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:
- how much you will repay
- how often repayments must be made
- how long the repayment period will last
- the total amount repayable
- the interest rate
- any fees or charges that may apply
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.
6. Energy bills and expected savings
No. The performance of an installation and any savings achieved will vary depending on:
- the technology installed
- your property
- how you use the system
- your energy use
- future energy prices
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.
7. Other government support
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.
8. Consumer protection
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:
- use official GOV.UK information
- check that the lender is listed as participating in the scheme
- check that the installer has the correct MCS certification
- avoid anyone claiming they can guarantee loan approval
- read contracts and finance documents carefully
- keep copies of your quotes, contracts and installation records
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:
9. Problems and complaints
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:
- quote
- installation contract
- loan agreement
- payment records
- MCS certificate
- correspondence with the installer or lender
Complaints about your:
- application
- finance product
- repayments
- lender’s service
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.
- Your lender/retailer is responsible for complaints about its finance product, application process or customer service.
- Your installer is responsible for complaints about the installation or quality of the work.
- MCS can provide further support, including with dispute resolution, with complaints relating to MCS-certified installations.
- DESNZ is responsible for complaints about how the Warm Homes Loan Scheme is designed, administered or operated.
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.
https://www.gov.uk/government/news/warm-homes-loan-scheme-factsheet
10. Further information
For the latest information about:
- eligibility
- participating lenders
- eligible technologies
- available finance products
- how to apply
- consumer support and complaints
visit the official GOV.UK scheme page and participating lenders’ websites.
https://www.gov.uk/government/news/warm-homes-loan-scheme-factsheet
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