08/08/2026
NEW: The Warm Homes Loan Scheme
The Government has announced a new scheme to make low-carbon home upgrades more affordable to finance. Here's what we know so far.
The Warm Homes Loan Scheme is expected to open to the public in September. It's designed to lower the cost of borrowing for low-carbon improvements through a government-backed grant, which is intended to reduce the interest on your loan by around 5 percentage points.
What it's expected to cover:
- Air source heat pumps — loans up to £20,000
- Ground source heat pumps — up to £35,000
- Solar panels — up to £15,000
- Battery storage — up to £15,000
- Biomass boilers, for rural properties — up to £20,000
Who it's for: homeowners, and landlords borrowing in a personal capacity, with no income cap. Loans are provided by FCA-authorised lenders, and the work must be carried out by an MCS-certified installer.
Worth noting: the scheme covers low-carbon technologies rather than insulation, windows or roofing, and the final details are still being confirmed ahead of launch.
We'll share more once it goes live. Full scheme details at
https://assets.publishing.service.gov.uk/media/6a3d3847da47783d87723aeb/warm-homes-loan-scheme-scheme-rules.pdf