What GLS payments are

GLS stands for "Greater London Authority Loan Scheme" — a program that helps homeowners in London pay for energy efficiency improvements to their homes. The scheme offers loans (not grants) to cover the cost of upgrades like insulation, new boilers, heat pumps, and window replacements. You borrow the money, then repay it over time, usually through your energy bills or as a separate monthly payment.

The program is run by the Greater London Authority in partnership with participating lenders. It exists because energy upgrades are expensive upfront, and most homeowners cannot pay cash. The loan is secured against your property, which means the lender has a legal claim if you stop paying.

GLS is different from a standard home improvement loan because it is tied to specific energy-saving work and often comes with lower interest rates than a personal loan would. However, it is still a debt you must repay — not a subsidy or grant that reduces the amount you owe.

Key Takeaways

  • GLS loans cover the upfront cost of energy efficiency work like insulation, boilers, heat pumps, and windows, which you repay over a set term.
  • The loan is secured against your home, meaning the lender has a legal interest in your property if you default.
  • Repayment usually happens monthly or through your energy bills, and the interest rate is typically lower than a standard personal loan.
  • You must own your home outright or have enough equity to borrow against, and you need to meet the lender's credit and income requirements.
  • The work must be done by an approved installer, and the improvements must meet the scheme's energy standards to may have access to.

Who can use GLS and what you need

To use GLS, you must be a homeowner in Greater London — either owning your home outright or with a mortgage. If you have a mortgage, your lender must consent to the GLS loan being registered against your property. Renters cannot use the scheme because they do not own the property being improved.

You will need to prove your identity, show proof of ownership (title deeds or mortgage statement), and demonstrate that you have the income to repay the loan. The lender will run a credit check and may ask for bank statements or payslips. If you have poor credit or very low income, you may be turned down or offered a higher interest rate.

Your home must have a valid Energy Performance Certificate (EPC), which rates how energy-efficient your property is. This certificate is usually required before the lender will approve the loan. If your EPC is older than ten years, you may need to get a new one.

How much you can borrow and what work qualifies

The amount you can borrow depends on the cost of the work, your home's current energy rating, and how much improvement the work will deliver. Most lenders set a minimum loan (often around £5,000) and a maximum (often £50,000 or more, depending on your equity and income). The loan cannot exceed the cost of the work itself — you cannot borrow extra cash for other purposes.

may have access to work includes cavity wall insulation, loft insulation, solid wall insulation, new boilers or heat pumps, double or triple glazing, draught-proofing, and solar panels. The work must be done by an installer approved by the scheme and must meet the relevant building standards and energy performance requirements. DIY work does not may have access to.

Before you apply, get quotes from approved installers. The lender will want to see the quote and may verify that the installer is registered. Some schemes require the work to achieve a minimum improvement in your home's energy rating — for example, moving from an E rating to a D rating.

How GLS payments are structured

Once your loan is approved and the work is completed, you begin repaying. Most GLS loans run for 5 to 20 years, depending on what you choose and what the lender offers. Your monthly payment is calculated based on the loan amount, the interest rate, and the term.

You can usually pay monthly by direct debit from your bank account. Some lenders offer the option to add the payment to your energy bill, so it comes out alongside your gas and electricity charges. This can make it easier to track, but it means your energy bill will be higher than it would otherwise be.

The interest rate is fixed for the life of the loan in most cases, so your payment does not change if interest rates rise. However, you may be able to pay off the loan early without penalty — check your loan agreement, as some lenders do charge an early repayment fee.

The application process and timeline

Start by contacting a lender that participates in GLS or by checking the Greater London Authority's website for a list of approved lenders. You will need to provide your home details, the work you want done, and quotes from approved installers. The lender will ask for proof of identity, proof of ownership, and financial information.

The lender will carry out a property valuation to confirm you have enough equity to secure the loan. This usually takes one to two weeks. Once the valuation is done and your application is approved, you will receive a formal loan offer, which you must sign and return.

After you sign, the lender will arrange for the work to be done. You do not pay the installer directly — the lender pays them once the work is complete and inspected. Your first loan payment usually starts 30 days after the work is finished. The entire process from application to first payment typically takes 6 to 12 weeks.

Interest rates and the true cost of borrowing

GLS interest rates vary by lender and your personal circumstances. Rates are typically lower than a standard personal loan — often in the range of 3% to 7% depending on the lender, your credit score, and current market conditions. The exact rate you are offered depends on how much risk the lender thinks you pose.

To understand the true cost, ask the lender for the Annual Percentage Rate (APR) and the total amount you will pay back over the life of the loan. For example, a £15,000 loan at 5% over 10 years will cost you roughly £18,000 in total — the extra £3,000 is interest. A longer term means lower monthly payments but higher total interest.

Compare offers from multiple lenders before you commit. A difference of 1% in interest rate can save or cost you hundreds of pounds over the life of the loan. Use a loan calculator to see how different rates and terms affect your monthly payment.

What happens if you cannot pay

If you miss a payment, the lender will contact you and may charge a late fee. If you miss several payments in a row, the lender can take legal action to recover the debt. Because the loan is secured against your home, the lender can ultimately force a sale of your property to recover what you owe — though this is a last resort and lenders usually try to work out a payment plan first.

If you are struggling to pay, contact your lender immediately. Many lenders have hardship programs and can temporarily reduce your payment or extend your loan term to make it more manageable. The sooner you reach out, the more options you have.

If you want to pay off the loan early, check your agreement for any early repayment penalties. Some loans allow you to repay without penalty; others charge a fee. Paying early saves you interest, so it is worth doing if you can afford it and there is no penalty.

Frequently Asked Questions

Can I use GLS if I have a mortgage?

Yes, but your mortgage lender must consent. Contact your mortgage lender before you apply for GLS and ask them to confirm in writing that they will allow a second charge (the GLS loan) to be registered against your property. Most mortgage lenders allow this, but some do not.

What if the work costs less than the lender's minimum loan amount?

You cannot borrow less than the lender's minimum, which is often £5,000. If your work costs less, you either need to add more may have access to work to reach the minimum, pay the difference out of pocket, or look for a different lender with a lower minimum.

Do I have to use an approved installer?

Yes. The lender will only fund work done by an installer approved by the scheme. This protects you because approved installers must meet quality standards and carry insurance. Get quotes from approved installers before you apply.

Can I borrow for work that is not energy-related?

No. GLS only covers energy efficiency improvements. You cannot use it to borrow for general home repairs, renovations, or other purposes. If you need to borrow for other work, you would need a standard home improvement loan or personal loan.

What if I sell my home before the loan is paid off?

The loan must be repaid in full when you sell. The proceeds from the sale go to your mortgage lender first, then to the GLS lender, then to you. If the sale price is lower than what you owe on both loans, you may owe money after the sale completes. Discuss this with your lender before you sell.