Tandem Bank today announced it is one of the first lenders to be approved in the UK Government’s Warm Homes Loan Scheme, offering reduced-rate loans to help homeowners fund energy efficiency installations such as solar panels and air source heat pumps.
Tandem welcomes the Scheme, which addresses both cost and awareness. Research commissioned by the Department for Energy Security and Net Zero found 68% of homeowners see high upfront cost as a major barrier to green home improvements, while few are very aware of the finance products available to fund them.
Working alongside Government and industry as the scheme was developed, Tandem shared its market insights and lending expertise to help shape a solution that improves access to energy-efficient home improvements for more households.
The Warm Homes Loan Scheme provides government grant funding to participating lenders like Tandem, helping to reduce the cost of borrowing for home upgrades such as heat pumps and solar panels. Lenders pass this saving on to customers through lower interest rates, making it more affordable for homeowners to install technologies that can help lower their energy bills.
The scheme, which forms part of the government’s Warm Homes Plan and supports the UK’s Net Zero ambitions, is open to homeowners and private landlords for residential properties.
Tandem has been helping homeowners make their homes more efficient for years resulting in the bank being well placed to be among the first lenders to offer finance under the Scheme. Offering savings products, motor finance and home improvement loans, Tandem helps customers manage their money while making greener choices easier.
As at September 2026, over 175,000 Tandem customers have benefited from almost £1b in home improvement loans*.
Darvish Heshejin, Managing Director of Home Improvement Lending at Tandem, said: “We’re proud to be one of the first lenders participating in the Government’s Warm Homes Loan Scheme. We’ve been financing green home upgrades for years, supporting the technologies, installers and industry bodies that make them possible, and to date have funded almost £1bn of energy efficiency improvements*.
We believe the scheme will encourage more households to adopt green home technologies, and we’re excited to work with our installer partners to help more customers heat and power their homes more efficiently.”
*Inclusive of ‘green lending’ defined as aligning to EU Green Taxonomy, and ‘pathway to green’ lending, defined as Tandem’s above average sustainability, relating to greenhouse gas emissions.
