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Get a heat pump on Lloyds

Lloyds
Published on: 15 October 2025
3 min read
 
  • Lloyds pays for the heat pump and the standard installation costs above any government grants.
  • Heat pumps installed by Octopus Energy.
  • Offer runs until 24th November.


Lloyds is offering customers the chance to get a heat pump installed on them when they take out a new mortgage. 

Launched today, 15th October, Lloyds 'free' heat pump offer is supported by installation partner Octopus Energy, the UK's largest energy providor.

Heat pump offer 

Customers who take out a new Lloyds mortgage or switch deals between now and 24th November 2025, have or take out a Club Lloyds current account, and are eligible for the government boiler upgrade scheme, could claim an air-source heat pump supplied and fitted by Octopus, with Lloyds picking up the cost of standard installation above anything governnment grants already cover. 

Claiming a heat pump is easy 

Customers just need to follow a few simple steps to check they are eligible at the Lloyds eco home hub, then contact Octopus to arrange a for them to check their home is suitable and the installation of the new heat pump. Lloyds will deal with the costs directly with Octopus. 

To qualify, customers need to:

  1. Be eligible for the government’s boiler upgrade scheme.
  2. Hold or open a Club Lloyds bank account at the time of applying (£5 per month fee, refundable each month you pay in £2000 or more).
  3. Apply for a new Lloyds mortgage or product transfers between 15th October and 24th November 2025 for a home in England.
  4. The home must be rated EPC C or D.
  5. Claim their heat pump from Lloyds and Octopus within 12 months of their mortgage completing.

Helping make homes warm efficiently 

Government data suggests that 90% of UK homes already have enough insulation to make them suitable to run a heat pump with additional insulation to help improve efficiency. Other benefits could include lower energy bills with smart tariffs, better air quality, lower Co2 emissions and a generally cosier home. (Source: UK Govt)

Research carried out for Lloyds (see editor’s notes) showed that those who’d recently installed a heat pump are already seeing the benefits, with the majority (60%) saying their homes were either warmer in winter or just generally more comfortable to live in. The research also indicates that a heat pump is seen by most as an investment in their home, with three quarters (77%) saying that it would help to increase the value of their home – aligning with the Bank’s own figures that show energy efficient homes attract a premium.

Based on Octopus’ costs, an air-source heat pump can be installed in a 3-bedroom home for around £11,400, but with a £7,500 boiler upgrade scheme grant available, this brings the cost down to £3,900, about the same as a new gas boiler.  For standard installations, this new offer from Lloyds would see that cut to zero.  

Lloyds is making this offer as part of its commitment to help make Britain’s homes more energy efficient. The bank’s ongoing partnership with Octopus, and its eco home rewards schemes have already helped make over 5,000 energy efficient home improvements for customers, such as heat pumps, solar panels, battery storage, and insulation.

This is a market-first offer for our customers that directly supports our efforts to help reduce the carbon impact of British homes. Beyond increasing access to low-carbon heating, it will also help us understand customer sentiment around heat pumps and retrofitting at a deeper level. This is a valuable opportunity to deepen our understanding of the broader challenges customers face - beyond financial considerations - as they move to more sustainable energy soultions.

Kate Townson Relationship Mortgages Director at Lloyds Bank

Heat pumps are quitely transformative - our customers tell us they're cosy, efficient and reliable, and now for some Lloyds mortgage customers they can be completely free. It's a no-brainer of a deal - what better way to welcome your new home thatn with gas-free heat and no upfront cost?

Rebecca Dibb-Simkin Chief Product and Marketing Officer at Octopus Energy

 

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