Lender offers a FREE £11,400 heat pump with your mortgage: Should you get one?
- Lloyds will hand out the devices to customers for the next month
Lloyds will offer a free heat pump to customers taking out a new mortgage or switching deals for the next month.
The lender said that if a homeowner was eligible for the Government's boiler upgrade scheme, it would cover the rest of the cost.
Heat pumps are a greener alternative to a traditional boiler which use electricity instead of gas, but many homeowners are put off by the high upfront cost.
An air-source heat pump installed in a three-bedroom home costs an average £11,400, according to Octopus, which is installing the heat pumps under Lloyds' scheme.
The Government's £7,500 boiler upgrade grant brings the cost to £3,900.
Someone using Lloyds' new offer could see the cost cut to zero - but only if they meet all the rules to qualify for the deal.
Free pump: Lloyds will cover the cost of supplying and installing a heat pump by Octopus
The offer is available to those who take out a new Lloyds mortgage or switch between now and 24 November.
They will also need to have or open a Club Lloyds current account and be eligible for the Government boiler upgrade scheme.
If you are eligible for the scheme and your home is suitable, you will need to arrange the installation directly with Octopus. Lloyds will deal with the costs directly with Octopus.
Finally, you will need to have installed a heat pump within one year of completing a mortgage or new deal.
Kate Towson, relationship mortgages director at Lloyds said: 'This is a market-first offer for our customers that directly supports our efforts to help reduce the carbon impact of British homes.
'Beyond increasing access to low-carbon heating, it will also help us to understand customer sentiment around heat pumps and retrofitting at a deeper level.'
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Who can get a heat pump?
Government figures show that 90 per cent of homes have enough insulation to make them suitable to run a heat pump.
A heat pump uses a fan to draw air into the home and a liquid called a refrigerant compresses the air to make it hot enough for your radiators and hot water tank.
There are two main types: ground source heat pumps, which absorb heat from the ground, and air source heat pumps, which pull heat from the air, and are the most common and cost-effective option for most UK homes.
Rebecca Dibb-Simkin, chief product and marketing officer at Octopus said: 'Heat pumps are quietly transformative - our customers tell us they're cosy, efficient and reliable.'
Opinions on the devices vary, however. Some people who have installed them have complained that heat pumps are noisy, and others say that they don't work well or haven't saved them any money on their bills.
Lloyds runs a separate scheme offering customers cashback for making green improvements, and customers can claim a free Energy Performance Certificate.
Qualifying customers who hold a new mortgage with Lloyds Bank or Halifax can claim up to £2,000 for installing a heat pump, but this does not run in conjunction with the free heat pump scheme announced today.
Homeowners can also apply for £1,000 cashback for installing solar panels or a battery.
Barclays offers a similar scheme, providing residential customers with up to £2,000 in cashback for installing a heat pump, or up to £1,000 for installing solar panels or battery storage.
You don't need to borrow more money or take out a new loan, but you will need to have a direct debit for mortgage payments and make sure you haven't claimed the reward before.
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