This article contains affiliate links to Heatable and iHeat. We may earn a commission if you buy through them, at no extra cost to you. HomeBoiler is not a credit broker, lender or installer, and this page is general information, not financial advice. Rates, grants and schemes are from the providers’ own pages, Ofgem, GOV.UK and Home Energy Scotland, checked 26 August 2026, and change often; any credit is subject to status and affordability checks, so the figure on your quote is the one that counts. Last reviewed: August 2026.
The good news about paying for a heat pump is that you rarely borrow the full price. In England and Wales the £7,500 Boiler Upgrade Scheme grant (£9,000 if you’re off-gas replacing oil or LPG) comes straight off the installer’s invoice, and there’s 0% VAT on the installation until 31 March 2027, so the amount you actually finance is often a few thousand pounds, not the five-figure headline.
From there you’ve got real choices: 0% and low-APR finance through the installer, a green loan or 0% additional borrowing from your own bank, the government’s new Warm Homes loan, or, in Scotland, an interest-free loan on top of the grant. The honest catch is that “0%” usually means a short term, longer terms carry interest, and every option is subject to a credit check. Our air source heat pump cost guide has the cash prices, and the Boiler Upgrade Scheme guide covers the grant that does most of the heavy lifting.
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The short version
You rarely finance the whole price. The £7,500 grant (£9,000 off-gas) comes off the invoice first, 0% VAT applies until 31 March 2027, and you borrow the balance. iHeat publish 0% APR with no deposit and monthly from-prices starting at £221; Heatable spread the cost and show the plan on your quote rather than a public APR table. Beyond the installers, a green loan or 0% additional borrowing from your own bank, the new government-backed Warm Homes loan, or Scotland’s interest-free loan can all cover the balance. Just remember that 0% usually means a short term, and any credit is subject to status.
Start with the grant, not the loan
Before you think about borrowing, get the free money and the tax break in place, because they shrink what you finance. The Boiler Upgrade Scheme is installer-led: your MCS installer applies, and the £7,500 (or £9,000 if you’re off-gas replacing oil or LPG, to 31 March 2027) comes off the quote as an upfront discount rather than a cheque you wait for. On top of that, heat pumps carry 0% VAT on supply and installation until 31 March 2027.
So a £12,000 job with a £7,500 grant is a £4,500 balance, and it’s that £4,500, not £12,000, that you’re deciding how to pay. Anything the survey adds, a cylinder, larger radiators or electrics, sits on top, so treat the headline as a starting point. Full rules are in our Boiler Upgrade Scheme guide, and the cash prices in our air source heat pump cost guide.
Installer finance: 0% and low-APR
The quickest route is the installer’s own finance, arranged through an FCA-authorised lender. iHeat publish the clearest headline: 0% APR with no deposit, and monthly from-prices on each of their three named packages.
| Package | List (inc VAT) | Monthly from | After £7,500 grant |
|---|---|---|---|
| iHeat Alpha Hydro | £10,595 | £221 | £3,095 |
| iHeat Vaillant aroTHERM Plus | £11,495 | £239 | £3,995 |
| iHeat Worcester 5800i | £11,995 | £250 | £4,495 |
| Heatable typical | £7,000–£13,000 | On the quote | About £0–£5,500 |
iHeat’s monthly figures are from-prices on the list price, and they also offer a 12-month buy-now-pay-later option and longer terms up to ten years, though the ten-year term isn’t the 0% deal, the 0% is the shorter-term product. iHeat act as an FCA credit broker; HomeBoiler doesn’t, and can’t approve anyone. Heatable design the job around your home and spread the cost, but they don’t publish a heat-pump APR table, so the plan shows on your quote; their documented 48-month 0% is on boilers, not heat pumps, so don’t assume it here.
Other big installers finance too, and it’s worth knowing the going rate isn’t always 0%. Octopus arrange loans through Novuna at 6.9% APR over three to five years, or 9.9% over ten, with no arrangement or exit fees, and British Gas is survey-led; we weigh the Octopus offer up in our Octopus heat pump review. After the £7,500 grant, iHeat’s packages land at £3,095, £3,995 and £4,495 (and, if you’re off-gas in the £9,000 window, £1,595, £2,495 and £2,995), and that balance, not the sticker, is what any of these plans actually spreads.
Borrow through your own bank
You don’t have to use the installer’s lender, and sometimes you shouldn’t. Green borrowing products have grown to more than ninety in the UK, and a few beat installer finance outright. The standout is 0% additional borrowing from your own mortgage lender: Nationwide, for example, lets existing mortgage customers borrow £5,000 to £20,000 at 0% fixed over two or five years with no product fee, as long as it all goes on qualifying energy improvements, and a heat pump counts.
It’s secured against your home because it sits on the mortgage, which is the trade-off, but at 0% it’s often the cheapest way to spread the cost. Several banks also pay cashback that effectively discounts the job: Halifax up to £2,000 towards a heat pump, Barclays up to £1,000 towards low-carbon heating. Standalone green loans from banks and credit unions are usually unsecured and typically run from around 3% to 9.9% APR over three to ten years. Whichever you look at, ask for the cash price and the finance price side by side; if they differ, the gap is what the finance is really costing you.
The government’s new Warm Homes loan
The biggest change coming to heat-pump finance is government-backed lending. Under the Warm Homes Plan, the Warm Homes Loan Scheme is designed to give homeowners low and zero-interest loans for low-carbon upgrades, heat pumps included, alongside solar panels and batteries. It works through participating FCA-authorised banks rather than a government website: the government tops the lender up so the rate to you is lower, and crucially the loan can be used alongside the £7,500 grant, so you could take the grant and then borrow the balance cheaply. A heat-pump loan can also cover the radiators, pipework and cylinder the job needs.
It’s aimed mainly at homeowners who don’t qualify for fully-funded support, with private landlords able to take part and no income thresholds. The scheme is rolling out through 2026, with loans expected to reach the public from around September 2026, and rates set by each lender rather than guaranteed at 0% for everyone. Because the detail is still landing, check the current position on GOV.UK, and ignore any unsolicited message claiming it can get you instant access.
iHeat for a published 0% line, Heatable for a survey-led quote
Both are MCS-certified and both take the £7,500 grant off the price, so you only finance the balance. iHeat publish 0% APR, no deposit and a monthly from-price; Heatable design the system around your home and show the plan on your quote. Credit is subject to status either way, and HomeBoiler is not a credit broker.
- Alpha Hydro from £221, Vaillant from £239, Worcester from £250
- 12-month buy-now-pay-later option
- Longer terms to 10 years (not the 0% deal)
- FCA credit broker, BUS paperwork handled
- £240 heat-loss survey, deducted if they install
- Spread the cost; the quote shows the plan
- No public heat-pump APR table
- BUS paperwork handled, MCS + Which?
How to pay for it
- Lock in the grant and 0% VAT first. Your MCS installer applies for the £7,500 (or £9,000 off-gas), and it comes off the quote before any finance.
- Want a published 0% line: quote iHeat, from £221 a month with no deposit.
- Want to shop the rate: check your own bank’s green borrowing (Nationwide 0% additional borrowing, Halifax or Barclays cashback) against the installer’s finance.
- Not in a rush: the government’s Warm Homes loan is due to reach the public around September 2026 and can be stacked with the grant.
- In Scotland: use Home Energy Scotland’s grant plus interest-free loan, not the Boiler Upgrade Scheme.
- Staying on gas instead: a new boiler is a different job, and our new boiler cost guide covers it.
Installer finance suits you if
- You want the finance and the install from one firm
- You want a published 0% line and a monthly floor today (iHeat)
- You’d rather it be unsecured, not tied to your mortgage
- You want the grant paperwork handled for you
Your own bank suits you if
- You’re an existing mortgage customer who can use 0% additional borrowing
- You want cashback on top of the grant
- You’re happy for the borrowing to sit on your mortgage
- You want to compare a rate against the installer’s plan
Frequently asked questions about heat pump finance
Can you get 0% finance on a heat pump?
Yes, but usually on a shorter term. iHeat publish 0% APR with no deposit, and Nationwide offer 0% additional borrowing to existing mortgage customers. Longer terms, up to ten years, carry interest, and Heatable spread the cost without publishing a heat-pump APR. Any credit is subject to status.
How much is a heat pump per month?
iHeat’s from-prices are £221 for the Alpha Hydro, £239 for the Vaillant aroTHERM Plus and £250 for the Worcester 5800i, on the list price. After the £7,500 grant the balance is roughly £3,095 to £4,495, so payments on that smaller sum are lower. Your actual figure depends on the term, the rate and what the survey adds.
Does the grant come off before I borrow?
Yes. The grant is deducted from the invoice by the installer, so you only finance the balance. A £12,000 job with £7,500 off leaves a £4,500 balance, before any survey extras such as a cylinder or radiators. Ask the installer to show the remainder they’ll put on credit.
What is the Warm Homes loan?
It’s a government-backed scheme giving low or zero-interest loans for heat pumps (and solar and batteries) through FCA-authorised lenders, and it can be used alongside the £7,500 grant. Loans are expected to reach the public from around September 2026, with rates set by each lender rather than guaranteed at 0% for everyone, so check GOV.UK for the current position.
Is heat pump finance different in Scotland?
Yes. Scotland doesn’t use the Boiler Upgrade Scheme. Home Energy Scotland offers up to a £7,500 grant plus an optional £7,500 interest-free loan towards a heat pump, repayable over up to ten years, with a £1,500 uplift for rural and island homes.
Is 0% available on solar as well?
Not usually at the same rate. There’s no grant on solar panels and installer solar finance is typically nearer 9.9% APR, though 0% additional borrowing from your own bank can cover panels. See our solar panel cost guide for the solar picture rather than this page.