The Warm Homes Loan has launched: caps, eligibility and how to apply
Lower-interest loans for solar, batteries and heat pumps, through ten lenders named on GOV.UK. Who can apply, the caps by measure and the route to a lender, with every figure dated and sourced.
Clearline is not a lender and does not provide or arrange credit. This page explains the government scheme using GOV.UK sources, and it is not financial advice. Our free design call covers your system and your written quote only.
Warm Homes Loan launch date and where the scheme stands
Launched on 26 October 2026 according to HM Treasury, and 27 October 2026 on the DESNZ factsheet. There is no government portal: you apply to a lender, and GOV.UK shows no waiting list or opening date.
20 January 2026 Done
Warm Homes Plan published
£15 billion of public investment to upgrade up to 5 million homes by 2030, with a consumer loan offer to follow later in 2026.
24 June to 29 July 2026 Done
First lender window
Lenders applied to take part in Phase 1. The notice was first published on 24 June and the first window closed on 29 July.
26 to 27 October 2026 Now
Launch, with ten lenders named
GOV.UK names ten participating lenders. Each one decides its own products, rates and terms.
Every month Coming
Monthly DESNZ statistics
DESNZ says it will publish the number and value of loans, by area and by lender, each month after the first month of delivery.
Late 2026 Next
The next lender window
A further window for lenders to apply, with onboarding in early 2027. The dates are still to be confirmed.
31 March 2027 Deadline
0% VAT on installations ends
The 28 October 2026 Budget did not extend it, so the rate moves to 5% from 1 April 2027. GOV.UK lists the Boiler Upgrade Scheme's £9,000 off-gas uplift as running until March 2027; the grant notice gives no end date and the Budget does not address it.
We update this page when GOV.UK does.
Budget update, 28 October 2026
The Budget document says the government has launched the Warm Homes Loan Scheme and will hold the Boiler Upgrade Scheme at £400 million in 2027-28, rising broadly in line with inflation after that, as announced in the 28 October 2026 Budget. It also saves £1 billion of capital grant from the Warm Homes Plan without saying which parts of the Plan carry the saving. Source: HM Treasury, Budget 2026 document (Red Book), paragraph 4.36.
Not published yet, as of 28 October 2026
- Lender rates, APRs, fees and early repayment terms. GOV.UK tells you to contact each lender.
- Which of the ten lenders has a product live today, and which firms each one accepts.
- A government application portal or an official online tool for the scheme.
- Dates for the next lender window, and the names of any further lenders.
- When air-to-air heat pumps can be used, which depends on MCS certification.
- How the Rules treat the MCS-certified product requirement for batteries, while MCS's draft battery product standard is out for consultation until 10 November 2026.
- An official end date for the scheme, and how much funding remains.
Sources: HM Treasury, 26 October 2026; DESNZ Warm Homes Loan Scheme factsheet, 27 October 2026; lender application notice, Phase 1 (GOV.UK, first published 24 June 2026, updated 17 September 2026); Scheme Rules, version 3, September 2026; Warm Homes Plan release, 20 January 2026. Checked 28 October 2026.
Warm Homes Loan caps: how much can you borrow?
These are the maximum loan sizes in the Scheme Rules, by measure. A lender can offer less, and what you are offered depends on its own checks.
Check a system against the caps
Our installed prices against the cap for each measure. At £1,000 per kWp, up to 28 of our 530 W panels (14.84 kWp) fit under the solar cap.
Cap for the selected heat pump:
Solar is priced at £1,000 per kWp installed and each battery at its installed package price; the Duracell packages are priced alongside new solar. Solar and a battery each have their own cap. Your written quote after the design call is the figure a lender works from. Clearline does not provide or arrange finance.
| Measure | Maximum loan | What the Scheme Rules say |
|---|---|---|
Solar panels | £15,000 | New roof-top solar, including adding panels to an existing system. An EV charger can be included only as part of a solar or battery job, inside the cap. |
Home battery | £15,000 | Standalone or paired with solar. A separate cap from solar. |
Air-to-water heat pump | £20,000 | The cap is set before any Boiler Upgrade Scheme grant is deducted. |
Ground source heat pump | £35,000 | Includes water source and shared ground loops. The cap is set before any Boiler Upgrade Scheme grant is deducted. |
Biomass boiler | £20,000 | Rural properties only, alongside a Boiler Upgrade Scheme or devolved grant. The cap is set before the grant is deducted. |
Air-to-air heat pump | Not eligible yet | The Rules list a £10,000 cap, but air-to-air heat pumps cannot yet meet the MCS certification requirement. |
Insulation, roofing and structural work | Not funded | The Scheme does not fund insulation as part of a heat pump installation, or replacement roofing and structural work. |
The caps apply to the total cost including ancillary work, and DESNZ can change them. The Rules also set £7,500 for heat network connections and £20,000 for micro-renewables such as domestic wind and micro-hydro. Solar and a battery each have their own £15,000 cap, so ask your lender how it treats a combined project. Sources: Scheme Rules, version 3, September 2026, paragraphs 4.13 to 4.20; DESNZ factsheet, 27 October 2026. Checked 28 October 2026.
Is the Warm Homes Loan interest free? How the rate works
The government pays participating lenders a grant of up to 20% of the loan. The lender has to pass it on by cutting the interest rate, by up to 5 percentage points off the rate it would otherwise charge, on terms of three years or more. Lenders set the rates, and none have been published yet.
| What you may have read | What GOV.UK and the Scheme Rules say |
|---|---|
“It is an interest-free loan.” | Some loans may be, but not all. The reduction is up to 5 percentage points off the lender's own rate, and it cannot take the rate below zero. |
“It is a 5% loan.” | No. Up to 5 percentage points comes off whatever the lender would normally charge for the same loan, so the result depends on that starting rate. Where the grant cap bites, the cut is smaller, which the Rules say is more likely on longer terms. |
“The government sets the rate.” | The lender does. Lenders keep product design, pricing and underwriting, and DESNZ approves each product. No lender has published rates on GOV.UK. |
“It is a grant.” | It is a loan, and you repay it. The government's grant, up to 20% of the loan, goes to the lender and has to be passed on to you as a lower rate. |
“Any length of loan gets the cut.” | The grant is only available on loans of three years or more. |
Rates in the Scheme Rules are nominal annual fixed rates, not APR, so compare the total repayable, the term and any monthly fees as well as the headline rate. Sources: Scheme Rules, version 3, September 2026, paragraphs 3.11, 3.12 and 6.4 to 6.9; DESNZ factsheet, 27 October 2026; GOV.UK lenders page. Checked 28 October 2026.
Warm Homes Loan eligibility: who can apply
Owner-occupiers and private landlords, for any domestic property in the UK, with no income test. The lender still checks your credit and affordability.
Who can borrow
Owner-occupiers of existing homes, and private rented sector landlords, borrowing personally. You must own the property, with or without a mortgage. Owners of several properties can apply for a loan for each.
Which homes
Any residential property in the UK. The Scheme Rules set no restriction by property type, and a mixed-use home qualifies where the work mainly serves the household, such as a home office or an annex.
What lenders check
There is no income threshold and no minimum energy efficiency upgrade at scheme level. Each lender runs its own credit and affordability checks, and may add criteria such as an EPC.
What the work must be
It must be done by a firm that is MCS-certified for that measure, with its MCS number on your quote. You cannot do the work yourself, and heat pump loans are not for replacing an existing heat pump.
Could you apply for a Warm Homes Loan?
Six taps against the GOV.UK eligibility rules. Nothing is sent anywhere and nothing is stored.
Not supported in phase 1: lending to businesses or special purpose vehicles, and property-linked finance, subscription or leasing products. Sources: GOV.UK, Warm Homes Loan eligibility; Scheme Rules, version 3, September 2026, paragraphs 3.3 to 3.10 and 4.4 to 4.13. Checked 28 October 2026.
Warm Homes Loan scheme lenders: the ten named on GOV.UK
These are the ten lenders on the GOV.UK lenders page on 28 October 2026. The factsheet calls them the first part of the offer, with more lenders and products expected. We do not rate or recommend any of them.
- HomeServe Finance
- Hometree Finance
- The Money Co-Op
- Propensio
- Secure Trust Bank
- Selina Finance
- South Manchester Credit Union
- Sunsave Energy
- Tandem Bank
- This Bank
- Tandem Bank says it does not take direct applications: you apply through a firm approved to offer Tandem finance, and the MCS directory is not a list of those firms.
- HomeServe Finance appears in the DESNZ factsheet as Homeserve, partnering with E.ON.
- Across the list: GOV.UK says some lenders work only with specific firms, while others let you choose any MCS-certified firm. It gives no rates or fees, and tells you to contact each lender about products, rates, terms, the application process and eligibility.
- Standards: lenders on the scheme must be FCA-authorised UK lenders. GOV.UK does not say which of the ten has a product live today, so check with the lender.
Sources: GOV.UK, Warm Homes Loan lenders; DESNZ factsheet, 27 October 2026; Tandem Bank's own Warm Homes Loan page; Scheme Rules, version 3, September 2026, paragraphs 4.1 and 4.2. Checked 28 October 2026. Lender names are used to identify who GOV.UK lists; no endorsement or partnership is implied.
How to apply for the Warm Homes Loan, step by step
The route GOV.UK and the DESNZ factsheet describe, with the quote first because every lender needs one.
- Free, 30 minutes
Get a free MCS-certified design and quote
Book a free design call with us, on video or by phone if you prefer. We design the system around your roof and your usage, and our MCS-certified, fully insured installation teams give you a written quote. Every lender needs a quote from an MCS-certified firm, with its MCS number on it.
- Before you commit
Choose a lender and compare the loans
Contact the lenders on the GOV.UK list directly about products, rates, terms and how to apply, because GOV.UK publishes none of those. Compare the total repayable, the term and any monthly fees, not just the headline rate, and check the product description shows it is government-funded. Some lenders work only with specific firms, so ask whether yours will accept your quote.
- Your decision
Apply to the lender, never to the government
Apply directly to the lender, through your mortgage provider, or through a firm that arranges finance for the work. Clearline does not provide or arrange finance. The lender runs its credit, affordability and eligibility checks.
- Once approved
Installation, then keep your records
The work must be done by a firm that is MCS-certified for that measure, and you cannot do it yourself. Lenders check the MCS certification at quote stage and after installation. Keep the quote, finance agreement, invoice, proof of purchase and MCS certificate, because some completed work is picked for a random DESNZ audit, with at least 48 hours' notice.
Free, with no obligation. The call is about your design and your quote. We are not a lender and we do not arrange loans.
Where a lender does not run the quote through its own journey, the Scheme Rules say the quote should be dated within the last six months, addressed to you, on headed paper, show the firm's MCS number and your full installation address, itemise the costs and show the system size in kW. Sources: GOV.UK, apply for a Warm Homes loan; DESNZ factsheet, 27 October 2026; GOV.UK, audits; Scheme Rules, version 3, September 2026, paragraphs 5.21 to 5.26. Checked 28 October 2026.
Can you combine the Warm Homes Loan with other support?
The rule from GOV.UK: you cannot use a Warm Homes loan and other government funding to pay for the same improvement. The exceptions are the Boiler Upgrade Scheme and Home Energy Scotland.
| Support | Combine with the loan? | Conditions |
|---|---|---|
Boiler Upgrade Scheme £7,500 for air-to-water and ground source heat pumps |
Yes |
England and Wales only, with one grant per property. The grant comes off your quote, and the loan can cover costs above it. The loan caps are set before the grant is deducted. Homes off the gas grid replacing oil or LPG can get £9,000 until 31 March 2027. The £2,500 air-to-air grant is not yet claimable in practice, because it waits on MCS certification for air-to-air heat pumps. |
0% VAT on installations Until 31 March 2027, then 5% |
Yes |
The 0% rate comes from HMRC's rules on the installation itself, not from the loan. It covers installations of solar panels, batteries and air, ground and water source heat pumps in homes. Materials supplied without installation are standard-rated, and grant-funded heating equipment is a separate matter, generally 5%. The rate is 5% from 1 April 2027. |
Warm Homes Local Grant England, household income usually up to £36,000 |
Not for the same improvement |
The Local Grant is free, council-delivered and England only. GOV.UK has not said whether a Local Grant home can add a loan for measures the grant does not cover. GOV.UK says households on a lower income might get free improvements through the grant instead. |
Checked on 28 October 2026, after the Budget. The Budget did not extend the 0% VAT rate on installations, which ends on 31 March 2027 with 5% from 1 April 2027 (Red Book, paragraph 6.215), and its text does not mention any change to Boiler Upgrade Scheme grant values. We update this page when GOV.UK does. Sources: HM Treasury, Budget 2026 document; GOV.UK, Warm Homes Loan Scheme; GOV.UK, Boiler Upgrade Scheme; HMRC VAT Notice 708/6; GOV.UK, Warm Homes Local Grant; Scheme Rules, version 3, September 2026, paragraphs 4.11 and 4.19.
Warm Homes Loan in Scotland, Wales and Northern Ireland
The loan covers any domestic property in the UK. The grants beside it differ by nation. Our own installation teams cover England, Scotland and Wales.
Scotland
The loan applies. GOV.UK says it can sit alongside Home Energy Scotland grants. The Boiler Upgrade Scheme and the Warm Homes Local Grant do not cover Scotland.
Wales
The loan applies, and the Boiler Upgrade Scheme covers Wales as well as England. The Warm Homes Local Grant is England only.
Northern Ireland
The loan applies, and HM Treasury's 26 October release names Northern Ireland. The Boiler Upgrade Scheme and the Warm Homes Local Grant do not cover it.
Sources: HM Treasury, 26 October 2026; DESNZ factsheet, 27 October 2026; GOV.UK, Warm Homes Loan Scheme; Scheme Rules, version 3, September 2026, paragraph 3.7. Checked 28 October 2026.
Warm Homes Loan scams: how to stay safe
- There is no government portal. You apply to a lender, never to the government.
- Be wary of cold calls, texts, emails and doorstep offers of access to the loan. Which? has warned that unsolicited offers of loan access are likely scams, and MoneySavingExpert has warned of scammers pretending to be part of the scheme.
- Apply only through a lender named on the GOV.UK lenders page, and check the product description shows it is government-funded.
- Report suspected scams or misuse to WHLScounterfraud@energysecurity.gov.uk.
Warm Homes Loan questions, answered
When does the Warm Homes Loan start?
The government marked the Warm Homes Loan Scheme as launched on 26 October 2026 (HM Treasury) and 27 October 2026 (the DESNZ factsheet). GOV.UK names ten participating lenders but shows no application date, portal or waiting list. Whether a lender has a product ready is for that lender to confirm, so contact them directly. We checked GOV.UK on 28 October 2026.
How do I apply for the Warm Homes Loan?
You apply to a lender, never to the government. GOV.UK says you can go directly to a participating lender, through your mortgage provider, or through a firm that arranges finance for the work. The lender runs credit, affordability and eligibility checks, and you need a quote from an MCS-certified firm. Clearline does not provide or arrange loans.
Is the Warm Homes Loan interest free?
Not for everyone. The government pays lenders a grant that has to be passed on as a lower interest rate, up to 5 percentage points off the lender's own rate, on terms of three years or more. The DESNZ factsheet says some loans are interest-free, but lenders set their own rates and none are published yet. It is not a flat 5% loan.
Who are the Warm Homes Loan lenders?
GOV.UK names ten: HomeServe Finance, Hometree Finance, The Money Co-Op, Propensio, Secure Trust Bank, Selina Finance, South Manchester Credit Union, Sunsave Energy, Tandem Bank and This Bank. The factsheet calls this the first part of the offer, with more lenders expected. Contact each lender directly for products, rates and terms, because GOV.UK publishes none.
Can I get a Warm Homes Loan for solar panels and a battery?
Yes, both are eligible measures. The Scheme Rules set a £15,000 cap for solar panels, including adding panels to an existing system, and a separate £15,000 cap for a battery, which can be standalone or paired with solar. An EV charger counts only as part of a solar or battery job. Ask your lender how it applies the two caps to a combined project.
Can I get a Warm Homes Loan for a heat pump?
Yes, for air-to-water heat pumps (up to £20,000) and ground source heat pumps (up to £35,000), with the caps set before any Boiler Upgrade Scheme grant is deducted. Air-to-air heat pumps are listed at £10,000 but are not eligible yet, because they cannot meet the MCS certification requirement. The loan is not for replacing an existing heat pump.
Can landlords get a Warm Homes Loan?
Yes. Private rented sector landlords are eligible, on a personal lending basis, so you borrow as an individual. Loans to businesses or special purpose vehicles are not supported in phase 1. Owners of more than one property can apply for a loan for each. The lender still runs its own credit and affordability checks before it agrees anything.
Does the Warm Homes Loan apply in Scotland, Wales and Northern Ireland?
Yes. The scheme covers any domestic property in the UK, and the factsheet names England, Scotland, Wales and Northern Ireland. The Boiler Upgrade Scheme is England and Wales only, and the Warm Homes Local Grant is England only. In Scotland, Home Energy Scotland grants can sit alongside the loan. Our own installation teams cover England, Scotland and Wales.
Is the Warm Homes Loan the same as the Warm Homes Local Grant?
No. The Local Grant is free, council-delivered help in England for households on a lower income, usually £36,000 a year or less, or on certain benefits. The Warm Homes Loan is borrowing from a lender, which you repay, with no income test. You cannot use the loan and other government funding for the same improvement, apart from the Boiler Upgrade Scheme and Home Energy Scotland.
Is there an income limit or a credit check for the Warm Homes Loan?
The Scheme Rules set no income limit, no minimum energy efficiency upgrade and no restriction by property type. There is a credit check: the lender runs its own affordability, credit and eligibility checks and may add criteria such as an EPC. The work must be done by a firm that is MCS-certified for that measure, with its MCS number on your quote.
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Takes about two minutes. We call or text within one working day to book your free 30-minute video design call at a time that suits you. We design it around your roof and your numbers, and our MCS-certified, fully insured installation teams install it.