Heat pumps

A heat pump is an energy efficient way of heating your home and could help reduce your home’s carbon footprint.​

How do heat pumps work?

They take heat from the outside and move it to the inside:

Even when it’s a bit cold, the ground or air outside can still be warm.

A heat pump uses something called a compressor to extract this warmth.

It can then be used to heat radiators and a hot water tank in your home.

A helping hand for qualifying mortgage customers

We’ve teamed up with Octopus Energy as we support their mission of decarbonising home heating with their air source heat pump installation service. ​ ​

Octopus Energy can support you from quote to installation and even help you apply for available government grants. ​

Visit the Octopus Energy website for a quote and to find out how much an air source heat pump might cost you.

Go to Octopus Energy

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Lloyds isn’t responsible for any improvements carried out by your chosen supplier.

How much does a heat pump cost?

Including the cost of fitting, an Octopus Energy air source heat pump can cost £500-£5500 including the government grant. 

What if something goes wrong?

In the unlikely event of something going wrong with your heat pump, you're in safe hands. Call the Octopus helpline and they’ll be able to assist you with any issues.

Octopus will tell you more about servicing and maintenance when they install your heat pump.

Octopus Energy FAQs

Why get a heat pump?

  • Reduce your energy - traditional gas boilers use more energy than heat pumps for the same amount of heat.
  • Better for the planet - carbon emissions could be lower than a gas boiler, especially if you use renewable electricity.
  • Heat pumps can last 20 years - a well installed heat pump will require relatively little maintenance.

Types of heat pump

Air source heat pumps

These are the most popular type of heat pump in the UK because of how efficient they are. They work by bringing warm air in from outside to heat water, radiators, and underfloor heating. A separate hot water tank is needed as they can't heat water instantly, like a gas boiler can.

Total costs are around £7,000 - £13,000 and might vary by supplier.

Ground source heat pumps

These heat pumps use an underground pipe to bring natural warmth up from the ground. The warmth is mixed with a special fluid and passed through a heat exchanger, ready to be used for hot water and to heat radiators and underfloor heating. And, as with air source heat pumps, a hot water tank is needed.

Total costs are around £14,000 - £19,000 and might vary by supplier.

Air-to-air heat pumps

This type of heat pump works a bit like an air conditioning unit in reverse, as it sucks in warm air from the outside and blows it inside. Air-to-air heat pumps can’t heat hot water, so they’re perfect for flats and other smaller places which don’t have any radiators or underfloor heating.

Total costs are around £1,600 - £3,100 and might vary by supplier.

Is a heat pump right for my home?

This depends on a few things. Heat pumps work best in well-insulated homes, so it’s best to check this out before you start thinking about getting a heat pump. An easy way to do this is to find out your home’s Energy Performance Certificate (EPC) rating. If yours is a D or above and it says you have insulation, you should be good to go.

Most heat pumps use radiators to heat your home, just like boilers do. Sometimes, your existing radiators might be too small for a heat pump to work efficiently and will need replacing, but this isn’t always the case. A heat pump usually works well with existing underfloor heating too. 

You’ll need some outside space for most heat pumps though. Around the size of a moped is usually enough for an air source heat pump. Ground source heat pumps take up more space than that, as they usually need a trench or borehole digging, plus a room inside for the operating system. 


Other important information

Lloyds Bank releasing any funds towards a purchase doesn’t guarantee the quality of work done by the supplier. It’s up to you to make sure you’re satisfied with the improvements carried out. 


Home energy grants and schemes

Help is available if you’re planning on upgrading or replacing your heating system with a new low-carbon one. But it’s different depending on where you live in the UK.

England and Wales

The Boiler Upgrade Scheme (BUS) offers grants of up to £7,500 to replace gas, oil, and electric boilers and heating systems with lower carbon alternatives, including heat pumps and biomass boilers.

Homes must meet certain EPC standards and other conditions to qualify. In Wales, the Nest scheme helps lower income families make their homes more energy efficient and better at saving water.


Home Energy Scotland offers grants of up to £7,500 for energy saving home improvements, like heating and insulation through the Warmer Homes Scotland programme. The scheme is funded by the Scottish Government to carry out improvements, such as wall and loft insulation, draught proofing, new boilers, and renewable energy projects with the aim of making homes warmer and cutting domestic energy bills.

Find out about discounts on home improvements.

Eco Home Tool

Ever wondered how energy efficient your home is? Want to know where improvements can be made?

Our Eco Home Tool is great for working out where you can save money on energy bills. You can create a personalised action plan to help reduce your carbon footprint.

Try the tool

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