First Warm Homes Loan Scheme providers officially revealed by Government

A list of low- and zero- interest Warm Homes Loan Scheme providers has officially been announced by the Government.

The loans, which form part of the Government's Warm Homes Plan, will be available for products such as heat pumps, solar panels and and batteries.

Where applicable, the loans can also be combined with the Boiler Upgrade Scheme in a move designed to make it possible for more homeowners to install clean energy technology with no upfront cost.

How much money can you borrow?

The loans will be available to homeowners across the UK, but according to Government information, there is a maximum amount of loan available which is dependent on the type of clean energy you are installing.

The most on offer is £35,000 for ground source heat pumps, with other figures confirmed as follows:

• Solar panels – up to £15,000  
• Electrical storage battery – up to £15,000   
• Air to water heat pump – up to £20,000  
• Air source heat pump – up to £10,000*
• Ground source heat pump – up to £35,000   
• Biomass boiler – up to £20,000   
• Heat network connection – up to £7,500    
• Micro-renewable system – up to £20,000 

In line with the conditions of the Boiler Upgrade Scheme, the loan for buying and installing an air source heat pump will only be available where operation under the Microgeneration Certification Scheme is confirmed.

What will the interest rates be?

In a bid to make the loan repayments affordable, the Government has worked with lenders to ensure that any loans offered under the Warm Homes Loan Scheme will have an up-to-5% reduction in interest rates compared to regular loans.

So, for example, if a standard loan rate for buying and installing solar panels was 8%, this would mean a potential reduction to 3% under the Government-backed scheme.

While each individual lender will set their own terms, it has been suggested some loans will be offered with zero interest rates and 30-year payback periods.

Which financial companies and banks will offer Warm Homes Loans?

Although it is expected that more high street banks and lenders will join the scheme over time, there are currently 10 confirmed scheme partners. These are:

• Homeserve (partnering with E.ON Next)  
• HTG Finance  
• Propensio  
• Secure Trust Bank  
• Selina Finance  
• South Manchester Credit Union
• Sunsave  
• Tandem Bank (partnering with British Gas)  
• The Money Co-op  
• This Bank  

Chris Norbury, CEO of E.ON UK, an energy supplier that has partnered with Homeserve (meaning anyone taking a loan from the company will be obligated to install E.ON clean energy products) welcomed the scheme saying:

"The announcement is an important step towards removing barriers to low-carbon technologies like batteries, solar panels, and heat pumps that are proven to help people bring down their energy bills.

"By allowing customers to store energy when prices are low, use it when they rise and get more value from the energy they generate, we can give them greater control over their energy use and put pounds back into their pockets."

Carl Hogg, Managing Director of Services at Good Energy, also noted how he was confident homeowners would be looking to take advantage of the news, citing how, "the fact that one in four Good Energy solar customers are now considering finance shows just how important this policy is to help more households across the UK access the benefits of solar panels."

What you should do next

With almost 150,000 solar panel installations in first six months of this year, and heat pumps sales at a record high in 2025, there is likely to be plenty of interest in the new loans.

If it is something that you feel will be suitable for your home renovation plans, start by checking if you are eligible for any other grants and then make sure you check any loan details thoroughly.

Chris Hewitson, VP credit & data at second-charge mortgage lender Selina Finance, who will be offering loans said: "The new scheme could make energy-saving home improvements more accessible to people who may previously have assumed they wouldn't qualify for financial support.

 "One of the important details for homeowners is that there is no government-set income threshold, so eligibility isn't limited to those receiving benefits or earning below a certain amount.

"However, this doesn't mean everyone will automatically qualify," he adds. "Lenders still need to assess whether the borrowing is affordable, taking into account income, existing debt and other financial commitments.

"Homeowners should also consider the total cost of borrowing and how taking on additional finance could affect their ability to borrow in the future," warns Chris, "particularly if they're planning further improvements or changes to their mortgage."

And, while the new loans will be welcomed by many, there is still some nervous anticipation about what may be announced regarding heating and energy in Andy Burnham's first budget since coming to office.

With rumours regarding cuts to the Boiler Upgrade Scheme as yet unconfirmed, only time will tell if the loans will be an addition to the grants, or a replacement.