The Warm Homes Loan Scheme is live: how to use it with Ecofurb (and why fabric still comes first)
The short takeaway: The government’s new Warm Homes Loan Scheme has recently launched, offering low-interest (and in some cases zero-interest) government-backed finance to help homeowners and landlords install clean heating and renewables. The work must be completed by an MCS certified installer. While several lenders only operate through closed proprietary networks, others accept a quote from any certified installer, meaning you can use a Warm Homes Loan with an Ecofurb-approved MCS installer right now. The loan doesn’t pay for insulation or other “fabric” upgrades, but it’s worth looking at the whole house before you borrow.
What is the Warm Homes Loan Scheme?
The Warm Homes Loan Scheme is part of the government’s Warm Homes Plan, and the Department for Energy Security and Net Zero (DESNZ) runs it. The government doesn’t lend you the money itself. It is supporting approved lenders so they can offer cheaper loans for low-carbon home improvements. The government says rates can be up to around five percentage points lower than a lender’s normal rate. It also says some loans are interest-free and some can be repaid over as long as 30 years.
How to use a Warm Homes Loan with Ecofurb (Step-by-Step)
You do not need to wait for integrated finance to get moving. Here is how the process works with Ecofurb today:
- Start with the home, not the kit: Book an Ecofurb survey and plan. We carry out a survey to look at your property’s heat loss, ventilation, and fabric condition so you only borrow for upgrades that genuinely make sense for your home.
- Receive an eligible quote from an Ecofurb MCS installer: Lenders require quotes dated within the last 6 months that itemise costs, detail equipment capacity in kW, and clearly display the installer’s MCS certification number. We make sure your quote pack meets these audit requirements.
- Apply directly to an approved lender: You apply directly through an open lender’s portal, submitting your Ecofurb installer quote. The lender conducts standard credit and affordability assessments.
- Grant deduction & installation: If you are installing a heat pump in England or Wales, your installer applies for the £7,500 Boiler Upgrade Scheme (BUS) grant (up to £9,000 for eligible off-gas properties until 31 March 2027), deducting it from the headline cost before loan drawdown.
- MCS commissioning: Once installed, your installer logs the system on the MCS database, confirming the installation for the lender to finalise your subsidised loan.
What does the loan cover?
The scheme provides subsidised borrowing caps per measure, set out in the government’s Warm Homes Loan Scheme factsheet:
- Air source heat pumps: Up to £20,000 (loan covers net cost after grant)
- Ground source heat pumps: Up to £35,000 (loan covers net cost after grant)
- Solar PV arrays: Up to £15,000
- Electrical battery storage: Up to £15,000
- Heat network connections: Up to £7,500
- EV chargepoints: Can be included, but only alongside a solar or battery installation
Note: While air-to-air heat pumps are mentioned in published scheme outlines (up to £10,000), it is not 100% confirmed yet when they will be live, as MCS is still finalising certification standards.
The “Fabric First” Reality: Why insulation must come into the picture
Under published government rules, fabric measures– such as solid wall, cavity, loft insulation, draught-proofing, and high-performance glazing– are excluded from the Warm Homes Loan Scheme.
While the loan only finances renewable hardware, Ecofurb strongly advocates a sensible, cost-effective fabric-first approach:
- Right-sizing your system: Insulating first reduces your home’s peak heat loss. That means you can install a smaller heat pump, potentially avoid radiator replacements, and enjoy lower running costs year-round.
- Actual thermal comfort: Heat pumps deliver steady, low-temperature warmth. If your home is leaking heat through uninsulated walls or draughty windows, the technology has to work twice as hard.
- Maximising solar and storage: Lowering baseline space heating and electrical demand ensures your solar panels and battery cover a greater portion of your annual energy needs.
Fabric first doesn’t mean doing everything at once. Quick wins like loft top-ups and targeted draught-proofing deliver huge comfort gains at low cost. An Ecofurb Plan helps you sequence these improvements so your home is properly prepared before installing low-carbon technology.
Prefer to start with one upgrade? We can help with that too. A whole-house plan is where Ecofurb adds the most value, but we know it isn’t everyone’s starting point. If you’d like to move ahead with a single measure, such as cavity wall insulation, loft insulation, or solar PV, we can arrange quotes through our network of vetted installers. We’ll still encourage you to view each upgrade as part of a broader energy plan, so you avoid unintended consequences such as moisture or ventilation problems down the line. Please note that we can’t provide quality oversight on works without a whole-house plan, but we’re happy to refer you to quality, vetted installers.
Which lenders can you use right now?
A number of lenders on the government’s 10-provider launch list only lend through closed arrangements or their own installation subsidiaries. However, several lenders allow you to apply directly using your own MCS installer:
- The Money Co-op: A community finance provider offering direct applications across broad areas of the UK. Homeowners apply online and upload their installer quote.
- South Manchester Credit Union: Offers direct lending for residents and workers within its common bond area, accepting quotes from any MCS certified installer.
- Selina Finance: Approved on the government cohort; while full scheme product portals are still rolling out, they specialise in flexible homeowner and property finance.
Good to know: Due to high demand, The Money Co-op has paused applications from time to time. It’s an encouraging sign, as it shows strong appetite for this type of finance and suggests the market is likely to keep growing. If applications are paused when you check, try again soon or take a look at the other lenders above.
As a reminder, Ecofurb is not a lender or credit broker and cannot recommend specific loan products or quote personalised interest rates. Please visit the lenders’ websites directly to review their current terms, credit criteria, and affordability checks.
What about landlords?
The overarching government scheme allows private landlords to take up loans for properties held in their personal names. However, it is not 100% confirmed across every direct lender yet whether buy-to-let applications are accepted on their initial standard products (for example, some direct portals currently specify owner-occupiers).
If you are a private landlord looking to reach EPC C ahead of 2030 standards, check directly with each lender regarding their eligible tenancy criteria.
👉 Book your Ecofurb home assessment
Regulatory Notice: Ecofurb (operated by Cotality) is not authorized or regulated by the Financial Conduct Authority (FCA) to provide credit broking, debt counselling, or financial advice. We do not introduce, arrange, or advise on consumer credit agreements. All loans are subject to individual lender underwriting, status, credit checks, and terms. For comprehensive scheme rules and lender lists, refer to official guidance on GOV.UK.