- Banking giant to work with Octopus Energy to boost roll out
- Lloyds to pay for additional costs not covered by the Boiler Upgrade Scheme
- Sixty per cent of Lloyds customers say a heat pump has made their home more comfortable

Customers who take out a new mortgage with Lloyds before the 24 November could get an Octopus Energy air-source heat pump for free after the bank announced it would cover any additional installation costs not covered by the Boiler Upgrade Scheme or other government grants.
In a statement, the banking giant said recent research it carried out showed that 60% of households who’d recently installed a heat pump said their homes were warmer in winter and “generally more comfortable to live in”.
On top of that, it said 77% of households claimed having a heat pump would increase the value of their home.

Get £7,500 towards your heat pump installation through a trusted installer
An MCS-certified heat pump installer can apply for the Boiler Upgrade Scheme on your behalf, get a quote from one now
The bank said an air-source heat pump would cost a three-bedroom house about £11,400, £7,500 of which could be covered by the Boiler Upgrade Scheme. The remaining £3,900 is roughly the same cost as a new boiler, and under this mortgage offer scheme it would be covered by Lloyds, lowering the cost to the customer to £0.
To qualify, customers need to:
- Be eligible for the government’s Boiler Upgrade Scheme.
- Hold or open a Club Lloyds bank account at the time of applying (£5 per month fee, refundable each month you pay in £2,000 or more).
- Apply for a new Lloyds mortgage or product transfers between 15 October and 24 November 2025 for a home in England.
- The home must be rated EPC C or D.
- Claim their heat pump from Lloyds and Octopus within 12 months of their mortgage completing.
Kate Townson, relationship mortgages director, Lloyds Bank, described the offer as a “valuable opportunity to deepen our understanding of the broader challenges customers face as they move to more sustainable energy solutions”.
Also commenting, Rebecca Dibb-Simkin, chief product and marketing officer, Octopus Energy, called heat pumps “quietly transformative”.
“Our customers tell us they’re cosy, efficient and reliable, and now for some Lloyds mortgage customers they can be completely free,” she said.
How do I know if I’m eligible for the Boiler Upgrade Scheme?
To be eligible, you must meet the following requirements:
- You must own the property you’re applying for, including if it’s a business, a second home, or a property you rent out to tenants
- You must be replacing fossil fuel heating systems, such as oil, gas, electric of LPG
- You must have a valid EPC certificate
For more information on the Boiler Upgrade Scheme, read our dedicated page.

Get £7,500 towards your heat pump installation through a trusted installer
An MCS-certified heat pump installer can apply for the Boiler Upgrade Scheme on your behalf, get a quote from one now