Lloyds Bank, Halifax and Barclays customers given £2,000 cashback for 1 change

Lloyds Bank, Halifax and Barclays customers can get up to £2,000 cashback for making one green upgrade to their home. The cashback is available to customers who have a mortgage with any of these banks and opt to get a heat pump installed in their property. While heat pumps are currently more expensive to buy and install than a conventional boiler, they are significantly more energy efficient and can be cheaper to run, potentially saving you hundreds of pounds per year on energy bills if you make the switch.

Heat pumps work by capturing heat from the air, ground or water and then passing this through a heat exchanger, where energy is then transferred to the water that flows through your radiators or underfloor heating, and to the water stored in hot water cylinders. According to Octopus Energy, the average lifespan of a heat pump is up to 20 years, compared to 15 for a boiler, and they have an efficiency of 310%, compared to just 85% for a boiler.

The supplier says for the average UK home, the cost of running a heat pump should cost a similar amount to a gas boiler, but it's possible to make hundreds of pounds of savings per year if you choose a smart, green heat pump tariff, so the investment is ultimately worth it.

As an added bonus, Octopus says that many of the biggest banks and mortgage lenders will reward customers who make green improvements to their home, paying up to £2,000 cashback to those who install a heat pump.

The supplier explains: "Fancy up to £2,000 back when you go green? If you've got a mortgage with Lloyds, Halifax, Santander, Virgin Money, or Barclays, you could pocket up to £2,000 cashback when you install a heat pump - or £1,000 if you go for solar and a battery.

"Just a heads-up: cashback comes from your bank, not us, and only applies if your bank is taking part and you meet their eligibility criteria."

The eligibility criteria varies for each bank, but the key details are as follows:

Lloyds Bank

The Lloyds Eco Home Rewards is available for Lloyds mortgage customers applying for a new mortgage, additional borrowing or switching to a new deal after July 31, 2024.

To get the £2,000 cashback, customers need to complete the heat pump installation within one year of applying for a Lloyds Bank mortgage, additional borrowing or new deal.

If customers get a heat pump installed with Octopus Energy, they will also be eligible for £100 energy credit.

Halifax

To qualify for the £2,000 cashback from Halifax, customers need to apply for a new Halifax mortgage, additional borrowing, or be switching to a new deal, after 31 July 2024.

The improvement must be made within one year if applying for a Halifax mortgage, additional borrowing or new deal, and if you get the heat pump installed with Octopus Energy, you will also be eligible for £100 energy credit.

Barclays

Barclays offers £2,000 cashback to its residential mortgage customers as part of its Greener Home Reward scheme.

The £2,000 reward is available to those who make 'low-carbon heating' home improvements, which includes the installation of an air source heat pump, a biomass pellet boiler or a ground source heat pump.

Customers have three months from the date of making the final payment for the heat pump installation to submit their claim for the Greener Home Reward. The cashback will then be paid 30 days after installation into the same bank account that mortgage payments are taken from.