Get up to £2,000 cashback on a heat pump through your mortgage
If you have a mortgage with Lloyds, Halifax, Barclays or Nationwide, you could be entitled to cashback or interest-free borrowing when you install a heat pump. Here’s what’s available right now.
The upfront cost of switching to a heat pump is one of the biggest factors putting people off, even with the government’s £7,500 Boiler Upgrade Scheme grant already bringing the price down significantly.
What many homeowners don’t realise is that several major banks are also offering cashback rewards or 0% borrowing for green home improvements, including heat pumps. If your mortgage is with one of the lenders below, it’s worth checking your eligibility before you go ahead.
Quick note: these cashback schemes are run by the banks themselves, not by us. You’ll need to check eligibility and apply directly with your lender.
Lloyds Bank — Eco Home Reward
Heat pump: £2,000 cashback | Solar panels or battery: £1,000 cashback
Lloyds mortgage customers who apply for a new mortgage, take out additional borrowing, or switch to a new deal can claim cashback on qualifying green home improvements.
Key conditions:
- Available to Lloyds mortgage customers applying for a new mortgage, additional borrowing, or switching to a new deal after 31 July 2024.
- One claim per mortgage.
- The home improvement must be completed within one year of your mortgage application or product switch.
- Cashback is paid by Lloyds, not your installer.
Full details: lloydsbank.com — Eco Home Offers
Halifax — Green Living Reward
Heat pump: £2,000 cashback | Solar panels or battery: £1,000 cashback
Halifax runs an almost identical scheme to Lloyds – which makes sense, as both are part of Lloyds Banking Group. The Green Living Reward is available to Halifax mortgage customers on the same basis.
Key conditions:
- Available to Halifax mortgage customers applying for a new mortgage, additional borrowing, or switching to a new deal after 31 July 2024.
- Home improvement must be completed within one year of your mortgage application or product switch.
- One claim per mortgage.
Full details: halifax.co.uk — Green Living Offers
Barclays — Greener Home Reward
Heat pump: £1,000 cashback | Solar panels or battery: £500 cashback
Barclays residential mortgage customers can claim cashback through the Greener Home Reward scheme. The amounts are slightly lower than Lloyds and Halifax, but still worth having.
Key conditions:
- Available only to Barclays residential mortgage customers.
- Must be your permanent residence.
- One claim per mortgage.
- You must use a TrustMark-approved installer (Neater Heat is Gas Safe registered — check current TrustMark status before booking).
- Cashback is paid 30 days after installation to the account from which your mortgage payments are made.
- You have three months from your final installation payment to submit your claim.
Full details: barclays.co.uk — Greener Home Reward
Nationwide – Green Additional Borrowing
0% interest loan of up to £20,000 for green home improvements
Nationwide takes a different approach. Rather than cashback, they offer interest-free additional borrowing of up to £20,000 specifically for energy-efficiency improvements, including heat pumps.
For homes that need a larger system or want to combine a heat pump with other upgrades, this could be a significant help.
Key conditions:
- Available only to existing Nationwide mortgage customers.
- One Green Additional Borrowing mortgage per property.
- Choose from a 2-year or 5-year fixed rate.
- 0% fixed interest for the first 2 or 5 years.
- 100% of the borrowed amount must be used for energy-efficiency improvements.
- The term of the additional borrowing cannot exceed the remaining term on your main mortgage.
Full details: nationwide.co.uk — Green Additional Borrowing
Can I use this on top of the £7,500 government grant?
Yes — and this is worth spelling out clearly, because many people don’t realise these schemes can stack.
The Boiler Upgrade Scheme (BUS) grant of £7,500 is applied directly by your installer at the point of installation — it is deducted from the price you pay. Bank cashback schemes are separate and sit on top of that. So if you’re a Lloyds or Halifax customer, you could, in principle, be reducing the net cost of a heat pump by £9,500 (£7,500 BUS + £2,000 cashback) before any finance arrangements are factored in.
At Neater Heat, we handle the BUS grant application on your behalf as part of every heat pump installation. You don’t need to do anything separately, we handle the paperwork.
Thinking about a heat pump in Hampshire or Surrey?
Neater Heat is a Gas Safe-registered heating company based in Aldershot. We install heat pumps across Hampshire and Surrey, including Farnham, Fleet, Farnborough, Guildford and Camberley.
If you’re curious whether a heat pump is right for your home, get in touch for a free consultation. We’ll give you a straight answer on suitability, costs and what grants or incentives apply to your situation.
