Help to Buy Remortgage: Repaying Your Equity Loan
A Help to Buy equity loan is interest-free for five years, then starts charging interest that rises every April. The loan itself tracks the value of your home, so it grows if prices rise. Remortgaging to repay it, in full or in part, is how most owners take back control, and Homes England sets strict rules on valuations, permission and timing.
- What the equity loan costs after year five
- Repaying in full or in part when you remortgage
- Homes England permission, valuations and fees
- Which lenders will lend to clear the equity loan
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Share the purchase date and price, the equity loan percentage, your mortgage balance and lender, and an idea of the current value. We will tell you whether you can repay all or part of it and what the new mortgage would cost, with advice built around your circumstances rather than headline rates.
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What the equity loan costs after year five
For the first five years you pay only a £1 monthly management fee. From the fifth anniversary of your purchase, interest is charged at 1.75 per cent of the original loan amount. It then rises every April: by the Retail Prices Index plus 1 per cent for loans taken out between 2013 and 2021, or by the Consumer Prices Index plus 2 per cent for the 2021 to 2023 scheme.
The interest does not reduce what you owe. You pay it on top of your mortgage, and the equity loan stays a fixed percentage of your home's value. If you borrowed 20 per cent on a £300,000 home and the home is now worth £350,000, you owe £70,000, not £60,000.
That combination is why so many owners look at repaying when they remortgage. Moving part or all of the equity loan onto the mortgage swaps a rising interest rate on a growing balance for a known mortgage rate on a fixed balance. Whether it is worth it depends on the rates available, your income and how much the home has changed in value.
This page covers the England scheme administered for Homes England. Help to Buy in Wales was a separate scheme with its own administrator.
Your repayment is set by a valuation at the time you repay. If prices are rising, waiting usually makes the equity loan more expensive to clear, not cheaper.
At a Glance
Homes England rules when you remortgage
From Homes England's published guidance on GOV.UK, checked 11 October 2026.
| Rule | What Homes England requires |
|---|---|
| Full repayment | No permission needed. You still need a compliant valuation, a conveyancer, the application form and a £200 administration fee |
| Part repayment | At least 10% of the market value, and at least 5% must remain outstanding. You need permission to change lender or increase your borrowing |
| Borrowing more | Additional borrowing is limited to repaying the equity loan, approved structural alterations, a transfer of equity and in some cases clearing arrears. You cannot be in negative equity or arrears |
| Maximum mortgage | Normally 75% LTV where a 20% equity loan stays in place, with lower limits for larger equity loans. Lender fees above £2,000 may not be permitted. Permission lasts six months |
| Valuation | An independent RICS valuation addressed to Homes England, with an internal inspection and at least three comparable sales within two miles from the last twelve months. Mortgage valuations are not accepted |
| Validity | Three months from the report date, sent to Homes England within five working days. A one-month letter or a three-month desktop update from the same surveyor can extend it |
| Fees | Redemption £200, remortgage £115, transfer of equity £115, plus your own valuation, legal and lender costs |
Keep paying the £1 management fee and any monthly interest until the equity loan is fully repaid. Arrears must be cleared or a payment plan agreed before any change.
Which lenders help, and how to plan it
Not every lender will lend with an equity loan behind it. Nationwide, for example, will not remortgage while an equity loan continues, but will lend up to 90 per cent LTV where the loan is used to repay the equity loan in full. Leeds Building Society includes an estimated 3 per cent a year of the equity loan in its affordability calculation where the loan remains.
Line up the valuation with the mortgage. The Homes England valuation lasts three months. Apply for the mortgage soon after it is issued, so the offer, the redemption letter and completion all happen inside that window.
Check the numbers both ways. Full repayment often means a higher loan to value on the mortgage. Part repayment keeps the loan to value lower but leaves interest running on what is left. We compare the total cost of each.
If you are selling instead. The equity loan is repaid from the sale proceeds at its percentage of the sale price. Our home movers page covers buying your next home.
If you cannot repay yet. A like-for-like remortgage or a product switch with your current lender can still reduce your mortgage rate while the equity loan stays in place.
Start about four months before your fixed rate ends. That leaves time for the Homes England valuation, the application and the redemption process without falling onto your lender's standard variable rate.
Where to go next
The pages most often read alongside this one.
How we handle a Help to Buy remortgage
Two timetables run together: the lender’s and Homes England’s.
Work out the options
Full repayment, part repayment or staying put, compared on total cost.
Arrange the valuation
A compliant RICS valuation for Homes England, timed to the mortgage.
Choose the lender
Lenders that will lend for the purpose and at the loan to value you need.
Offer and redemption
We secure the offer and work with your conveyancer on the redemption letter.
Completion
The equity loan is repaid and the charge removed once everything owed is cleared.
Read more about new build homes
Related pages for Help to Buy owners.
Ready to deal with your equity loan?
Tell us the original price, the loan percentage and your mortgage. We will show you what repaying all or part of it would cost.
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Help to Buy Remortgage: Frequently Asked Questions
When does interest start on a Help to Buy equity loan?
From the fifth anniversary of your purchase. It starts at 1.75 per cent of the original loan amount and rises every April, by RPI plus 1 per cent for 2013 to 2021 loans or CPI plus 2 per cent for 2021 to 2023 loans.
How much do I owe on my equity loan?
The same percentage of your home’s current value as you originally borrowed. A 20 per cent loan on a home now worth £350,000 means £70,000 to repay, whatever the original loan was.
Can I remortgage to pay off Help to Buy?
Yes. Many lenders will lend to repay the equity loan in full, and some allow part repayment. Nationwide, for example, lends up to 90 per cent LTV where the purpose is to repay the equity loan in full.
Can I repay only part of the equity loan?
Yes, if you repay at least 10 per cent of the home’s value and leave at least 5 per cent outstanding. You need Homes England’s permission to change lender or borrow more for a part repayment.
What valuation do I need?
An independent RICS valuation addressed to Homes England, with an internal inspection and at least three comparable sales within two miles from the last twelve months. A mortgage valuation from your lender is not accepted.
How long is the valuation valid?
Three months from the report date. It must be sent to Homes England within five working days. The same surveyor can extend it with a one-month letter or a three-month desktop update.
What fees does Homes England charge?
£200 to redeem, £115 to remortgage, £115 for a transfer of equity, and other fees for changes such as structural alterations. Your own valuation, legal and lender costs are separate.
Can I borrow more to do home improvements?
Only for approved structural alterations, with Homes England’s permission. Additional borrowing is otherwise limited to repaying the equity loan, transfers of equity and in some cases clearing arrears.
What if I cannot afford to repay the equity loan?
You can still remortgage or switch products on a like-for-like basis to keep your mortgage rate down, while continuing to pay the equity loan interest. We can look at whether a part repayment is achievable.
Do I have to repay Help to Buy when I sell?
Yes. The equity loan is repaid from the sale proceeds at its percentage of the sale price, on top of your mortgage.
Written and reviewed by Osman Emin, CeMAP, mortgage and protection adviser · FCA register OCE01003 · Updated YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.