Are you wondering if a Home Energy Scotland loan can help you afford a new boiler for your home?
The Home Energy Scotland loan – having just recently replaced a scheme called HEEPS loan – can be a godsend. Especially if you’ve just bought a new home, and know it could do with some improvements. Luckily there’s help out there to make your home more energy efficient.
This can include measures like installing a new boiler, double glazing, or adding new insulation to your attic or cavity walls. And the best part? It’s also interest free!
Below, I’m going to tell you more about a Home Energy Scotland loan, and how you can go about applying for one.
What is a Home Energy Scotland loan?
Funded by the Scottish government, the Home Energy Scotland loan is available to homeowners and private landlords (if they meet eligibility criteria) in Scotland. It can help you fund energy efficiency improvements, home renewables, or help you connect with an approved district heating scheme powered by a renewable energy source.
You could potentially receive a loan of up to £32,500 (per household)! And for a limited time, cashback grants for energy efficiency improvements carried out on your home.
Out of that £32,500, you could potentially receive up to £5,000 for a new boiler and radiators! With potentially £400 cashback.
You can also get up to £500 on heating controls, a cylinder thermostat, flue gas heat recovery system, a hot water tank jacket, or a waste water heat recovery system.
One other thing. These loans are on a strict first-come, first-serve basis, so get applying quicksmart!
How to get a Home Energy Scotland loan
The only way to get a Home Energy Scotland loan is through Home Energy Scotland. In order to qualify, you must contact them personally for impartial advice about your home. This will allow you to decide on what your next steps are.
Third parties (boiler installers or letting agents) cannot apply on your behalf. Once you’ve contacted them, Home Energy Scotland can then send out an application form on your behalf.
Your application will be subject to a credit and affordability check. It’s also important to note that work cannot be carried out until you’ve received your loan offer in writing.
If your application has been successful, and you go on to claim funds, you must pay an administration fee of 1.5% of your total loan value, up to a maximum £150.
Your application form will include complete terms and conditions.
Advice from an experienced engineer
I would advise calling Home Energy Scotland in the first instance to receive your application form. Home Energy Scotland recommend choosing a Green Deal certified installer, but you can choose any Gas Safe registered engineer you like.
One caveat: a Green Deal certified installer will be required if you need insulation measures as part of your energy efficiency improvements.
I’ve had two or three customers recently who have gone through this route. In most cases, they’ve just bought a house, and know it’ll cost a lot of money to change their heating and install insulation etc. so have gone for this deal. The most important thing is that you get a quote for everything you want.
There’s no point in just getting a quote for a new boiler with standard controls and new radiators, then realising you should have gotten smart controls and a higher spec boiler. With up to £5,000 on your heating system, and an extra £500 for smart controls, you should definitely consider all options.
Don’t be scared to go back to your engineer. Ask them to quote for higher spec controls, or new radiators, or that slightly better spec of boiler.
TIP: It’s a good idea to apply in your joint names, as this may affect your eligibility – especially if your mortgage is already in joint name.
I hope this information has been of help when looking for interest free loans for a new boiler. The Home Energy Scotland loan is probably your best bet at the moment. And with a total of up to £32,500 per household, it could be worth it to apply!
Remember, you get 2 – 3 quotes from your chosen installers – they don’t have to be Green Deal certified. But no work should be carried out until you’ve received your loan offer in writing.
Do you have any questions about the Home Energy Scotland loan? Feel free to drop them in the comments. I’ll be happy to help!