What is the North East Warm Homes Loan?

If you own your home in the North East and have been putting off energy saving upgrades because of the upfront cost, a new low interest loan could change the maths. The North East Warm Homes loan lets you register your interest now and apply for funding from 22 October 2026, with borrowing from £2,000 to £25,000 at 2% interest and repayment terms of up to ten years. It covers insulation, solar panels, heat pumps and more, and there are no early repayment charges.

What is the North East Warm Homes Loan?

The North East Warm Homes Loan is a new low interest home energy loan for households across the North East Mayoral Strategic Authority area. It is delivered in partnership with Lendology CIC, with impartial energy advice provided by the Energy Saving Trust, and it was announced by the Mayor as part of the region’s push to tackle fuel poverty and cut carbon emissions.

Unlike grant schemes, where funding is only available to lower income households, this is a loan product. That means a wider group of homeowners and landlords can spread the cost of energy saving improvements over an agreed period, with monthly repayments tailored to their circumstances. All lending is subject to status and eligibility, and affordability and creditworthiness assessments form part of the application process.

When does the North East Warm Homes Loan open?

You can register your interest from 8 October 2026 using the registration page, and applications open on 22 October 2026. Once applications open, you will be able to complete a full application for funding, subject to eligibility and affordability assessments.

Registering your interest does not guarantee loan approval. It simply means the scheme will contact you when the application window opens. If you have questions in the meantime, the scheme’s team can be reached on 01823 461099 or by email.

How much can you borrow and what does it cost?

The North East Warm Homes Loan offers borrowing between £2,000 and £25,000. The scheme’s FAQ confirms an interest rate of 2%, with the page summary quoting a representative 2.2% APR, and repayment terms of up to ten years. The amount you can borrow and your monthly repayments will depend on your individual circumstances, the cost of the works, and the outcome of affordability and creditworthiness assessments.

Two features stand out for homeowners. First, there is no early repayment charge, so you can repay the loan early without penalty. Second, the full loan terms and repayment options will be explained before you decide whether to proceed.

Monthly loan repayments begin one month after the first loan payment is released. That means if your contractor asks for a deposit or an initial payment before starting the works, your repayments may begin before the installation is finished. Funds can be released in stages, for example to cover an agreed deposit and further payments as the work progresses, subject to the usual checks and approvals.

Who is eligible for the North East Warm Homes Loan?

The scheme is available to eligible homeowners and landlords with properties in the North East Mayoral Strategic Authority area, which covers the following local authorities:

• County Durham
• Northumberland
• Gateshead
• Newcastle
• North Tyneside
• South Tyneside
• Sunderland

You may be eligible if you own and live in your home, or are a landlord, and the property has an eligible postcode within the area. As part of the application, your financial circumstances will be reviewed, including your income, expenditure and existing credit commitments, to check whether borrowing is affordable.

Being retired or on a low income does not automatically prevent you from applying. Applications are assessed on individual circumstances, including income, essential expenditure and existing financial commitments, to work out whether the proposed repayments would be affordable and sustainable. Landlords will also be asked about relevant financial assistance they have received, so the scheme can check its subsidy requirements.

What home improvements can the loan pay for?

The North East Warm Homes Loan is designed for energy efficiency improvements. Eligible works include:

• Solar panels and battery storage
• Air source and ground source heat pumps
• Insulation
• Double and triple glazing
• Solar thermal systems
• Ventilation improvements
• Domestic wind turbines
• Other measures that improve a property’s energy efficiency

Certain associated works may also be considered where they are necessary to complete an eligible installation. New fossil fuel heating systems, such as gas boilers, are not eligible. All proposed works are reviewed as part of the application to check they are suitable for funding under the scheme.

Should you get a grant instead of a loan?

Before taking on any borrowing, it is worth checking whether you qualify for grant funding. Depending on your circumstances and the improvements you are considering, grants or other financial assistance may be available, and the scheme itself recommends exploring grants first.

The North East Warm Homes One Stop Shop can provide energy efficiency advice and information about potential grant support, and the scheme can direct you towards this service where appropriate. Readers can also read our guide to the Warm Homes Local Grant eligibility to see whether free insulation and heat pump funding applies to them, and our rundown of free insulation grants for 2026 covering ECO4 and GBIS.

How to register and what happens next

You do not need quotations ready to register your interest. The registration page is the first step, and once applications open on 22 October 2026 you can complete a full application.

When you progress to the full application, a quotation for your proposed works will need to be reviewed before a formal loan offer can be confirmed. Two quotations are recommended where practical, although one may be accepted. All quotations are reviewed to make sure the proposed works and costs are suitable for lending.

There is no fixed list of approved contractors or products under the scheme, so you can choose your own installer and discuss the most suitable products for your home. The scheme recommends checking that your contractor holds the relevant qualifications and accreditations for the work, such as MCS certification for heat pumps or solar, TrustMark registration, or FENSA certification for glazing, where applicable.

One warning is worth repeating: wait until your loan has been formally approved and the loan agreement has been signed before committing to any works or making payments to contractors. Until that point, funding is not guaranteed, and any costs or commitments you make are at your own risk.

After registering, the process runs as follows: apply from 22 October, have your eligibility, financial circumstances and proposed improvements reviewed, receive a formal loan offer if successful, and then decide whether to proceed. Funds can then be released in stages as the work progresses.

If you are comparing window upgrades, our guide to secondary glazing costs versus double glazing may help you decide which measure fits a loan funded project.

Frequently asked questions

When do applications for the North East Warm Homes Loan open?

Applications for the North East Warm Homes loan open on 22 October 2026. You can register your interest from 8 October 2026, and registering does not guarantee loan approval.

How much can I borrow under the North East Warm Homes Loan?

Borrowing is available between £2,000 and £25,000, with an interest rate of 2%, representative 2.2% APR, repayment terms of up to ten years, and no early repayment charge. The amount and monthly repayments depend on your circumstances and the outcome of affordability assessments.

Which areas are covered?

Properties must be in the North East Mayoral Strategic Authority area: County Durham, Northumberland, Gateshead, Newcastle, North Tyneside, South Tyneside and Sunderland.

What can the loan be used for?

Eligible measures include insulation, solar panels and battery storage, air source and ground source heat pumps, double and triple glazing, solar thermal systems, ventilation improvements and domestic wind turbines. New gas boilers are not eligible.

Can I choose my own installer?

Yes. There is no approved contractor list, but the scheme recommends checking qualifications such as MCS certification, TrustMark or FENSA where applicable, and obtaining two quotations where practical.

Can I apply if I am retired or on a low income?

Being retired or receiving a pension does not automatically rule you out. Applications are assessed on individual circumstances, including income, essential expenditure and existing commitments.

When do repayments start?

Monthly repayments begin one month after the first loan payment is released. Funds can be released in stages, for example to cover a contractor deposit and further payments as work progresses.

Sources

• Lendology CIC, North East Warm Homes Loan page: https://www.lendology.org.uk/partner/northeastwarmhomesloan/
• Lendology CIC, register your interest page: https://www.lendology.org.uk/register-ne/
• North East Mayoral Strategic Authority announcement, LinkedIn: Mayor’s loan scheme announcement