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What Is the Warm Homes Loan Scheme?Who Is Eligible for the Warm Homes Loan Scheme?What Can the Warm Homes Loan Scheme Be Used For?What Improvements Are Covered by the Warm Homes Loan Scheme?How Much Can You Borrow Through the Warm Homes Loan Scheme?How Do You Apply for the Warm Homes Loan Scheme?What Are the Benefits of the Warm Homes Loan Scheme?When Will the Warm Homes Loan Scheme Be Available?Warm Homes Loan Scheme vs Grants - What's the Difference?Can the Warm Homes Loan Scheme Help Pay for Solar Panels or a Heat Pump?Warm Homes Loan Scheme FAQs
What Is the Warm Homes Loan Scheme?Who Is Eligible for the Warm Homes Loan Scheme?What Can the Warm Homes Loan Scheme Be Used For?What Improvements Are Covered by the Warm Homes Loan Scheme?How Much Can You Borrow Through the Warm Homes Loan Scheme?How Do You Apply for the Warm Homes Loan Scheme?What Are the Benefits of the Warm Homes Loan Scheme?When Will the Warm Homes Loan Scheme Be Available?Warm Homes Loan Scheme vs Grants - What's the Difference?Can the Warm Homes Loan Scheme Help Pay for Solar Panels or a Heat Pump?Warm Homes Loan Scheme FAQs
The Warm Homes Loan Scheme (WHLS) is a government-backed initiative designed to make it easier for households across the UK to pay for energy-efficient and low-carbon home improvements.
The scheme aims to tackle one of the biggest barriers to improving home energy efficiency - the high upfront cost. Rather than having to pay for improvements using savings, eligible households may be able to access more affordable finance through participating lenders.
The Warm Homes Loan Scheme is aimed at households that can afford to borrow but may not have enough savings to cover the initial cost of improvements. It is also designed to help people who may currently be put off by high borrowing costs or strict lending criteria.
In this guide, we'll explain how the Warm Homes Loan Scheme works, who may be eligible, what improvements could be covered and how to apply.
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The Warm Homes Loan Scheme (WHLS) is a government-backed scheme designed to make it easier for households to finance energy-efficient and low-carbon home improvements.
Rather than providing homeowners with a grant, such as the Warm Homes Local Grant, the scheme works with participating lenders to offer finance for eligible home upgrades. Government funding is intended to help make these loans more affordable.
The scheme is part of the government’s wider Warm Homes Plan and aims to remove some of the financial barriers that can stop people from making energy improvements to their homes.
The scheme is particularly aimed at people who can afford to borrow but may not have enough savings to cover the upfront cost of improvements.
The Warm Homes Loan Scheme is designed for people who want to make eligible improvements to their home and are able to take out and repay a loan.
The scheme rules currently identify two main groups:
Owner-occupiers of existing domestic properties
Private rented sector landlords, when borrowing on a personal lending basis
Unlike some government energy schemes, the WHLS does not set a scheme-wide income threshold. Instead, individual lenders will carry out their own affordability and creditworthiness checks and may have additional requirements for their loan products.
This means meeting the basic scheme criteria does not automatically guarantee that you will be offered finance. Your lender will decide whether you qualify for its particular loan product.
The Warm Homes Loan Scheme is designed to help fund eligible home energy improvements and low-carbon upgrades.
The exact improvements covered can depend on the finance product offered by the participating lender. The scheme is intended to support upgrades that can improve a property's energy efficiency or reduce its carbon emissions.
Depending on the lender and product available, eligible improvements may include measures such as:
Home insulation
Other energy-efficiency improvements
Low-carbon heating technologies
It is important to check the specific loan product before applying, as lenders can decide which eligible measures their finance products support.
The Warm Homes Loan Scheme is designed to help finance a range of low-carbon heating and energy-efficiency improvements. The exact options available depends on the lender and the finance product they offer.
Eligible improvements can include:
Air source heat pumps
Ground source and water source heat pumps
Heat network connections
Solar panels
Insulation and other energy-efficiency measures
Biomass boilers in certain circumstances
Some improvements have additional requirements. For example, certain heat pumps may need to meet specific standards or be eligible for other government support, such as the Boiler Upgrade Scheme.
It is therefore important to check which improvements are supported by the particular lender and loan product you are considering.
The Warm Homes Loan Scheme does not provide homeowners with a fixed loan amount. Instead, participating lenders will offer their own finance products, with the government providing support intended to improve affordability and reduce the cost of borrowing.
The amount you can borrow will therefore depend on the lender, the improvements you want to make and your individual financial circumstances.
Before taking out a loan, you should check:
How much you can borrow
The interest rate
The length of the repayment period
Your expected monthly repayments
Any fees or additional charges
Whether you need to meet specific lender requirements
The government has committed £300 million of grant capital to the scheme, with the aim of helping increase access to finance and reduce the cost of funding home energy improvements.
You do not apply directly to the government for a Warm Homes Loan Scheme loan. Instead, the scheme works through participating lenders, which offer finance products supported by the government.
The application process will depend on the lender you choose, but you can generally expect to:
Choose an eligible home improvement you want to make.
Find a participating lender offering finance for the improvement.
Check the lender's eligibility and affordability requirements.
Apply for the loan through the lender.
Arrange the installation if your application is approved.
As with any form of borrowing, approval is not guaranteed. Lenders will make their own decisions about affordability and creditworthiness, so you should compare the terms carefully before committing to a loan.
The main aim of the Warm Homes Loan Scheme is to make energy-efficient home improvements more affordable by reducing some of the financial barriers involved.
As mentioned above, the government is providing £300 million of grant funding to support participating lenders and encourage more affordable finance for home upgrades.
For homeowners, potential benefits include:
Lower upfront costs for eligible improvements
Access to more affordable finance than may otherwise be available
The ability to spread the cost of improvements through repayments
Support for low-carbon technologies and energy-efficiency measures
The potential to make your home warmer and more energy efficient
However, the WHLS is still a loan rather than a grant, so you will need to repay the money you borrow. The exact interest rate, repayment period and other terms will depend on the lender and product you choose.
The Warm Homes Loan Scheme is being introduced as a multi-year programme, with the first lender application window opening in June 2026. The initial consumer launch phase is expected to begin in September 2026, when eligible households should start to see finance products becoming available.
The launch will be followed by another lender application window expected to open in late 2026, with successful lenders expected to be onboarded in early 2027. Exact dates will be confirmed ahead of the application window opening.
The government expects the scheme to continue with annual application and onboarding windows, allowing more lenders to join over time. Lenders will only need to apply to join the scheme once.
For homeowners, this means the availability of Warm Homes Loan Scheme finance will depend on participating lenders and the products they offer. As the scheme develops, more finance options may become available.
It is worth checking the latest government guidance before applying, as participating lenders, available products and launch dates may change as the scheme rolls out.
The Warm Homes Loan Scheme is different from a traditional heat pump or solar panel grant.
A grant does not normally need to be repaid, whereas money borrowed through the WHLS does. The advantage of the loan scheme is that it is designed to make finance for eligible home improvements more affordable and accessible.
| Warm Homes Loan Scheme | Government Grant |
|---|---|
| Money is borrowed from a participating lender | Funding is provided towards the cost of an improvement |
| The loan must be repaid | Grants generally do not need to be repaid |
| Designed for households that can afford to borrow | Often targeted at households meeting specific eligibility criteria |
| Can help spread the cost of improvements | Can reduce or cover some of the upfront cost |
| Availability depends on participating lenders | Availability depends on the individual grant scheme |
The right option will depend on your circumstances, the improvement you want to make and which schemes you qualify for. The government also runs other programmes supporting home energy improvements, so it is worth checking whether you could receive grant funding before taking out a loan.
For more information, explore our guides to available government grants:
If you're considering improving your home's energy efficiency, the Warm Homes Loan Scheme could help make the cost of solar panels or an air source heat pump more manageable, depending on the finance options available from participating lenders.
Both technologies can help you reduce your reliance on traditional energy sources:
Solar panels generate renewable electricity from sunlight, allowing you to produce more of your own energy.
Air source heat pumps take heat from the outside air and use it to heat your home and hot water efficiently.
The upfront cost of these technologies can be significant, so spreading the cost through finance may make installation more accessible. However, it's important to check the terms of any loan and whether your chosen improvement qualifies.
To find out more about the costs involved, explore our helpful guides below:
As an experienced installer of solar panels and air source heat pumps, we can help you find the right solution for your home. Get in touch today to request a quote for solar panels or an air source heat pump.
No, the Warm Homes Loan Scheme is not a grant. It provides access to finance through participating lenders, meaning any money you borrow will need to be repaid according to the terms of your loan.
The scheme is government-backed but delivered through participating lenders. The government provides funding to support the scheme, while individual lenders are responsible for offering and managing their own loan products.
Yes, a Warm Homes Loan must be repaid. The interest rate, repayment period and other terms will depend on the lender and the specific finance product you choose.
It may be possible to use other government support alongside finance, but this depends on the individual grant and its rules. You should check the eligibility requirements for any grant before assuming it can be combined with a Warm Homes Loan.
The Warm Homes Loan Scheme and Warm Home Discount are separate government initiatives. The Warm Homes Loan Scheme provides access to finance for eligible home improvements, while the Warm Home Discount provides eligible households with support towards their electricity costs.
