Start with the grant
The Boiler Upgrade Scheme (BUS) is worth £7,500 towards an air or ground source heat pump in England and Wales. Scotland has a similar scheme. It comes straight off the price your installer quotes you — you don’t apply for it yourself or receive the money directly.
That still leaves a real gap. Average installed cost is currently around £13,000 before the grant. Most people end up financing somewhere in the £5,000–£8,000 range afterwards — sometimes more, sometimes less, depending on the property.
The Warm Homes Loan Scheme
A government-backed loan scheme for heat pumps, solar, and home batteries, launching to the public in September 2026 through participating banks and building societies.
Rates around 0–3%. Kept low because the government pays a capital grant — up to 20% of the loan — to the lender, to buy the rate down.
Loan caps of £20,000–£35,000. The exact cap depends on the type of heat pump being installed.
Terms of 3–10 years. So the monthly cost is spread rather than paid upfront.
No income threshold, no minimum EPC rating. No property-type restriction either — it’s designed to be broadly accessible, not just for new-build or already-efficient homes.
Because this is new, terms and participating lenders are still settling in — check directly with a lender before assuming you qualify.
Green mortgages and further borrowing
If you already have a mortgage, several lenders offer further borrowing specifically for green home improvements, separate from the Warm Homes Loan Scheme:
Nationwide: £5,000–£20,000 at 0%. For 2 or 5 years, for existing mortgage customers making green home improvements.
Coventry Building Society: up to £25,000. Of additional borrowing at competitive fixed rates, with at least half going towards qualifying green measures.
Halifax: up to £2,000 cashback. Through their Green Living Reward scheme, for eligible green home improvements, on top of any mortgage you already have with them.
Green mortgages more broadly. Lenders including NatWest, HSBC, and Barclays reward a better EPC rating with a better rate — a heat pump can improve your terms at your next remortgage, even if that’s a while away.
The trade-off with any of these: it’s borrowing secured against your home, not a standalone personal loan. Worth understanding the difference before you commit either way.
Other ways people pay for it
Installer finance. Sometimes offered directly at the point of quote. Convenient, but treat it like any other credit offer — check the APR, not just the headline ‘0% available’ line.
A standard personal loan. Can work out simpler than a secured green loan for smaller amounts, though usually at a higher rate.
Savings. Avoids interest entirely, but obviously not available to everyone, and ties up a lump sum other things might need.
Frequently asked questions
How do I know this is a safe way to spend this much money?
Summary
The short version
The grant covers part of it
£7,500 off in England and Wales, taken off the price directly by your installer.
A new low-rate loan is arriving
The Warm Homes Loan Scheme launches September 2026: 0–3% rates, £20k–£35k caps.
Your mortgage can help too
Nationwide, Coventry BS and others offer green further-borrowing separate from the new scheme.
Installer finance and loans still work
Just compare the APR, not the headline rate — the same way you would for any credit.
Check before you sign
APR, total repayable, early repayment fees, and whether it’s secured against your home.
Just Ask: Heatpump
Just Ask: Heatpump is an independent companion to Visit a Heat Pump and Get a Heat Pump. Built from real installation experience to give honest, practical guidance before you commit.
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