Warm Homes Loan Scheme: what it means for plumbers, heating engineers and their customers

From 27 October 2026, homeowners anywhere in the UK can borrow up to £20,000 for an air source heat pump or £35,000 for a ground source heat pump through the government's new Warm Homes Loan Scheme, with nothing to pay upfront and low or zero interest. Every loan-funded installation must be MCS-certified, and through our Alto Assured MCS Umbrella Scheme, your local plumber can deliver it without holding MCS certification themselves.

What is the Warm Homes Loan Scheme?

It is a government-backed finance scheme that helps households pay for clean energy upgrades over time rather than all at once. The government has worked with lenders to bring interest rates down by up to 5% compared with standard bank and high street loans.

Ten lenders are offering loans at launch, so you can shop around for the deal that suits you. More lenders and products are expected to join as the scheme develops.

For plumbers and heating engineers: no MCS? No problem

The scheme only funds installations carried out by MCS-certified installers. If you're a plumbing or heating business that hasn't taken on the cost and admin of MCS certification, that could have shut you out. Under the Alto Assured MCS Umbrella Scheme, you install the heat pump for your own customer and we take responsibility for the MCS side, so the job qualifies for the Boiler Upgrade Scheme grant and the new loans.

As an Alto Assured installer you get:

• Free heat pump training covering Mitsubishi, Samsung, Worcester Bosch and IVT

• Heat loss calculations and system design to MIS 3005, with full schematics

• A fixed package price for design, supply and commissioning, with next-day delivery from stock available

• Commissioning and inspection by an Alto Energy engineer, plus the MCS certificate

• The Boiler Upgrade Scheme application made on your customer's behalf

• A handover pack for your customer and unlimited telephone technical support

You keep the customer relationship. Your customers can now spread the cost of a heat pump over many years, which makes the conversation about switching far easier.

How much can you borrow?

What will it cost to borrow?

Rates and terms vary by lender, and some loans are interest free. As an example, the government says a homeowner borrowing £10,000 over seven years at a typical 8% would repay around £155 a month today; through the scheme, they could save up to £285 a year on repayments.

Always check the total amount repayable, the length of the term and any monthly fees before you choose a loan. Lenders will carry out their usual affordability, credit and eligibility checks.

Combine your loan with a grant of up to £9,000

The loan can be used alongside the Boiler Upgrade Scheme in England and Wales, or Home Energy Scotland support in Scotland. The grant comes off the price of your heat pump first, and the loan can cover what is left, so you may have little or nothing to fund yourself.

Alto Energy applies for the Boiler Upgrade Scheme grant on the homeowner's behalf, whether we install the system ourselves or a local Alto Assured installer does.

How much could you save?

The government estimates that a home with a heat pump, battery and solar panels could save up to £550 a year on energy bills, and a further £300 a year on a time-of-use tariff. Heat pumps also reduce your exposure to gas price shocks, because your heating no longer depends on fossil fuels.

Who can apply?

The scheme is open to households in England, Scotland, Wales and Northern Ireland. You apply through a participating lender or, where the lender works with installer partners, through your installer.

For homeowners: use a heating engineer you trust

Every installation funded by the scheme (apart from heat network connections) must be MCS-certified, which protects you with recognised technical and consumer-protection standards. You don't have to switch to a big national company to get that. Ask your usual plumber whether they work with Alto Energy, or contact us and we'll put you in touch with a local Alto Assured installer. Alto Energy also designs and installs systems directly, and looks after them afterwards with our service plans.

How to get started

If you're a plumber or heating engineer:

1. Book our free heat pump training to learn air and ground source installation across the major brands.

2. Join the Alto Assured network and get access to our MCS umbrella scheme.

3. Send us your customer's project. We'll produce the heat loss design and a fixed-price package.

4. Your customer arranges finance with a participating lender, alongside their Boiler Upgrade Scheme grant.

5. You install; we commission and certify. We register the MCS certificate and handle the grant application.

If you're a homeowner:

1. Talk to your plumber or contact us for a survey and heat pump design.

2. Get your quote, including any Boiler Upgrade Scheme grant you're eligible for.

3. Choose your loan. Some lenders only work with their own installer partners, while others let you choose any MCS-certified installation.

4. Apply. The lender runs its normal affordability, credit and eligibility checks.

5. Installation and commissioning, with your MCS certificate registered.

6. Keep your paperwork: quote, finance agreement, invoice, proof of purchase and MCS certificate.

Participating lenders at launch

• HomeServe (in partnership with E.ON)

• HTG Finance

• Propensio

• Secure Trust Bank

• Selina Finance

• South Manchester Credit Union

• Sunsave

• Tandem Bank (in partnership with British Gas)

• The Money Co-op

• thisbank

Get started

Plumbers and heating engineers: book free heat pump training or join Alto Assured. Call 01993 220699 or email info@altoenergy.co.uk.

Homeowners: ask us for a survey, or to be put in touch with a local Alto Assured installer. Book a survey online.

Frequently Asked Questions