The offer is supported by Octopus Energy and will be available to mortgage borrowers who take out a new loan or switch between 15 October and 24 November, have or take out a Lloyds Club account and are eligible for the government boiler upgrade scheme.
Customers will be able to claim an air source heat pump supplied and fitted by Octopus, and Lloyds will cover the cost of the standard installation above what is paid for by the government grant.
The home must have an Energy Performance Certificate (EPC) of C or D and customers must claim the heat pump within 12 months of the mortgage completion date.
Octopus said based on its costs, an air source heat pump could be installed in a three-bedroom home for around £11,400, but with a £7,500 grant through the Boiler Upgrade Scheme, the cost would fall to £3,900, which is around the same price as a new gas boiler.
Kate Townson, relationship mortgages director at Lloyds Bank, said: “This is a market-first offer for our customers that directly supports our efforts to help reduce the carbon impact of British homes.
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“Beyond increasing access to low-carbon hearing, 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 solutions.”
Rebecca Dibb-Simkin, chief product and marketing officer at Octopus Energy, added: “Heat pumps are quietly 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 than with gas-free heat and no upfront cost?”
