The Loan
The UK Warm Homes Loan Scheme opened on 27 October with ten lenders, no- and low-interest loans, and a modelled bill saving of up to £550 a year. No household has a repayment record yet.
Ten lenders. A modelled £550. No household has a repayment record.
On 27 October 2026 the Department for Energy Security and Net Zero published the Warm Homes Loan Scheme factsheet. The loans are for households in England, Scotland, Wales, and Northern Ireland. They are no-interest or low-interest. The government says it worked with lenders to cut rates by up to 5 percentage points against a regular bank loan. Some products are interest-free. Some allow up to 30 years to repay.
Ten lenders are named in the first wave: Homeserve with E.On, Hometree Finance, Propensio, Secure Trust Bank, Selina Finance, South Manchester Credit Union, Sunsave, Tandem Bank, The Money Co-op, and This Bank. A homeowner can stack a loan with a Boiler Upgrade Scheme grant of up to £9,000, or with Home Energy Scotland's equivalent.
The factsheet's worked example: borrow £10,000 at 8% over seven years and the current repayment is about £155 a month. Through the scheme, the same borrower could save up to £285 a year on the repayments. The bill claim is separate. Installing a heat pump, a battery, and solar panels could, the department says, save a family up to £550 a year, and a further £300 with a time-of-use tariff. Those are models. They are not a meter reading from a household that took the loan yesterday, because the factsheet is a day old.
Demand context from the same page: almost 150,000 solar installations in the first six months of this year, and a record year for heat-pump sales in 2025. Further lenders are expected. Ministers named on the page are Miatta Fahnbulleh and Martin McCluskey.
The picture is a heat pump against a brick wall, or a loan agreement with the rate line visible and no brand logo. Do not show a family celebrating a bill they have not received.
Key Facts
- Factsheet published 27 October 2026 by the Department for Energy Security and Net Zero
- UK-wide. No- and low-interest. Up to 5 percentage points off a regular loan rate
- Ten named lenders in the first wave. Some interest-free. Up to 30 years
- Example: £10,000 at 8% over seven years is about £155 a month now; up to £285 a year off repayments through the scheme
- Modelled energy-bill saving up to £550 a year for heat pump, battery, and solar, plus up to £300 on a time-of-use tariff
- Can stack with a Boiler Upgrade Scheme grant of up to £9,000
- Almost 150,000 solar installations in the first half of 2026, per the factsheet
Why This Matters
The upfront cost is why a heat pump stays a brochure. A named lender and a rate cut are a mechanism. A modelled £550 is not a result, and this episode will not treat it as one.
What We Don't Know Yet
How many households will be approved. What the actual rates are at each of the ten lenders. Whether the £550 survives a cold winter and a badly installed pump. Whether private renters are in practice excluded. The factsheet says further products are coming. Coming is not here.