Lloyds offers free Octopus air-source heat pumps with new mortgage deal
Lloyds offers free Octopus air-source heat pumps with new mortgage deal
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20 October 2025
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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
Lloyds customers could soon get an air-source heat pump for free.
Customers who take out a new mortgage with Lloyds before 24 November could get an Octopus Energyair-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.
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
Max joined The Eco Experts as content manager in February 2024 and became deputy editor in 2025. He has written about sustainability issues across numerous industries, including maritime, supply chain, finance, mining, and retail. He has also written extensively for consumer titles like City AM, The Morning Star, and The Daily Express.
He has represented The Eco Experts on national television several times, including the BBC’s Sunday Morning Live and ITV Tonight .
In 2020, he covered in detail the International Maritime Organisation’s (IMO) legislation on sulphur emissions and its effects on the global container shipping market as online editor of Port Technology International.
He also explored the initiatives major container ports and terminals have launched in order to ship vital goods across the world without polluting the environment.
Since then, he has reported heavily on the impact made by environmental, social, and governance (ESG) practices on the supply chain of minerals, with a particular focus on rare earth mining in Africa.
As part of this, in 2022 Max visited mines and ports in Angola to hone in on the challenges being faced by one of the world’s biggest producers of rare earth minerals.
His most recent sustainability-related work came much closer to home, as he investigated the eco-challenges faced by independent retailers in the UK, specifically looking at how they can cut emissions and continue to thrive.
Max lives in South London and is an avid reader of books on modern history. He has also recently learned to play the game Mahjong and takes every opportunity to do so. He is also yet to find a sport he doesn’t enjoy watching.
Tamara BirchNewsletters and sponsored content editor
Tamara is a journalist with more than six years experience writing about environmental topics. This includes advising small businesses on cost-effective ways tom become more sustainable, from installing to solar panels and heat pumps and reducing waste. She has used her journalist and research skills to become highly knowledgeable on sustainable initiatives, issues, and solutions to help consumers do their bit for the environment – all while reducing monthly costs. Now, she’s using this experience to advise homeowners on the benefits of installing low-carbon technologies. She is also qualified in offering innovative initiatives to improve sustainability practices in businesses, from advertising to marketing and publishing.
Her passion for sustainability and eco-friendly solutions stems from a long obsession with nature and animals and ensuring they feel looked after. In her free time, Tamara enjoys reading fantasy novels, visiting the gym, and going on long walks in new areas.
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