Help to Buy equity loans don't disappear when you've paid off your main mortgage. The government holds a stake in your home, and that stake needs to be settled, whether you're selling, remortgaging, or approaching the end of your interest-free period.
Most people are surprised by how the repayment is calculated. You don't repay the original cash figure. You repay that same share of whatever your home is worth now. If prices have risen since you bought, you'll pay back more than you borrowed. If they've fallen, you'll pay back less.
This article focuses on the Help to Buy equity loan scheme in England, administered by Homes England. Help to Buy Wales is a separate scheme with different rules, run by the Welsh Government. It remains open to new applicants until September 2026. Scotland’s Help to Buy schemes are now closed.
If you're unsure which scheme applies to you, check your original Help to Buy agreement or contact Homes England directly. For a broader overview of buying your first property, see our first-time buyer mortgage guide.
This article is for general information only and isn't personal financial advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.
When you used Help to Buy, the government lent you up to 20% of your property's purchase price (40% in London). What you owe when you repay is that same percentage, but applied to your home's current market value, not what it was worth when you bought it.
The loan must be repaid in full when any of the following happens:
There are no early repayment charges, so you can repay early if that suits your situation.
Homes England does not charge an early repayment charge for repaying the equity loan. However, administration, valuation and legal fees apply, and your mortgage lender may charge an early repayment charge if you change or repay your mortgage.
Say you bought your home for £250,000 with a 20% equity loan of £50,000.
You can also make a partial repayment (sometimes called staircasing), but the minimum is 10% of your home's current market value. On a property now worth £300,000, the minimum partial repayment would be £30,000. You cannot leave less than 5% of the market value outstanding after a partial repayment.
These are illustrative repayment examples. Homes England will confirm the actual repayment amount using an accepted valuation and will include any applicable fees, interest or arrears.
For the first five years of your equity loan, you pay no interest. That gives you some time to adjust, but from the fifth anniversary (the start of year 6), interest charges begin.
Year 6 interest rate: 1.75% of the equity loan amount you borrowed.
After year 6, the rate rises every April:
Interest is calculated monthly using the formula: (equity loan amount in £ × interest rate %) ÷ 12.
On a £50,000 equity loan, year 6 annual interest works out to £50,000 × 1.75% = £875 a year, around £72.92 a month. That rate then rises each year depending on inflation. The longer you keep the equity loan, the more it costs. Interest payments do not reduce the loan balance itself.
Information is correct at the time of writing and may change. Always check the latest scheme guidance and terms before making a decision.
If you're comparing different government-backed first-time buyer schemes, our Help to Buy ISA guide explains how the savings scheme works and how it differs from the Help to Buy equity loan.
Repaying a Help to Buy equity loan involves several steps, including the Royal Institution of Chartered Surveyors (RICS) valuation, an application to Homes England, and legal work from a conveyancing solicitor.
Step 1: Decide how you'll fund the repayment. The most common route is remortgaging (borrowing more against your home to clear the equity loan). You can also use personal savings if you have them available. If you're selling, the repayment comes out of the sale proceeds.
Step 2: Get a RICS valuation (typically £150–300). Homes England needs an independent valuation from an RICS-qualified surveyor to calculate your repayment amount.
Step 3: Complete the repayment application form. Download and return the Help to Buy Equity Loan repayment application form to Homes England's Customer Service team. You'll need to include your conveyancer's details and authorise them to act on your behalf.
Step 4: Pay the Homes England administration fee (typically £200). Homes England charges a £200 administration fee to process your application. You can pay by bank transfer, debit card, or cheque. Homes England won't progress your application until it has received the payment.
Step 5: Receive the redemption letter. Once Homes England has your RICS valuation report, completed application form, and admin fee, they'll issue a redemption (repayment) letter confirming the exact amount you need to repay, including any outstanding interest, fees, or arrears.
Step 6: Instruct a conveyancing solicitor (typically £300–600). A conveyancing solicitor handles the legal side of repaying the equity loan, including the legal undertaking and arranging the fund transfer. Some remortgage deals include free legal work, which can reduce this cost.
Step 7: Complete the repayment. Your conveyancer transfers the repayment funds to Homes England. Once the correct amount is confirmed, Homes England applies to the Land Registry to remove the equity loan charge from your property title.
These are general steps based on government guidance. The exact process may vary depending on when you took out your loan and your individual circumstances.
The RICS valuation is how Homes England calculates exactly what you owe. You cannot use a mortgage valuation or an estate agent's market appraisal. It must be a formal RICS report, and the requirements are stricter than people expect.
Typically, a RICS valuation costs £150–300, depending on the region and property type. You pay for it yourself, and it isn't refundable even if your repayment doesn't complete.
The report is valid for 3 months from the date it was produced and must be sent to Homes England within 5 working days of issue. If it expires before your repayment completes, contact your surveyor within 2 weeks of the expiry date.
They can provide a 1-month extension letter or a desktop valuation that adds a further 3 months. Miss that 2-week window and you'll need a new report.
Homes England's requirements say the surveyor must:
Homes England can reject a valuation report if it doesn't follow their requirements or if it appears inconsistent with comparable properties. If that happens, you'll need to commission a new report.
You can contact Homes England's Customer Service team to challenge a rejection, although you'll usually need to show that the original report met their requirements.
A lower valuation means a smaller repayment. If you're remortgaging at the same time, that lower property value could push up your loan-to-value (LTV) ratio, which may affect the mortgage rates you can access.
One way to repay a Help to Buy equity loan is by remortgaging. The new mortgage covers both your existing mortgage balance and the equity loan, clearing the government's stake in your home.
Our remortgaging guide explains how the process works in more detail.
There are two main options:
Worked example: You have a remaining mortgage balance of £150,000 and an equity loan worth £60,000 (based on your current RICS valuation). Your property is valued at £300,000. You'd need a new mortgage of at least £210,000, which works out to 70% LTV (loan-to-value).
You can also use our remortgage calculator to estimate how a larger mortgage could affect your monthly repayments.
There's no single answer here. The key question is whether the interest on additional mortgage borrowing would cost you more or less than the equity loan interest you're paying, or about to start paying.
The case for repaying sooner:
The case for waiting:
Paying off earlier can avoid rising interest, but whether it's the right time depends on your circumstances, costs, and the deals available to you. Speak to a mortgage adviser before making a decision.
Selling your home means you'll need to repay the equity loan. The repayment amount is based on your equity loan percentage of whichever is higher: the RICS valuation or the actual sale price.
You'll still pay the £200 administration fee and solicitor fees if you sell within the first five years, but with no interest accrued during that period and no early repayment charges. You can sell whenever it suits your circumstances.
Still got questions? Here are the answers to some of the most common ones.
Timings vary depending on Homes England, the surveyor, your conveyancer and, where relevant, your mortgage lender. Coordinate the different stages carefully and allow for the three-month validity period of the RICS valuation.
If you're repaying at the same time as remortgaging, the timelines need to line up carefully. Your solicitor needs the redemption letter from Homes England before they can complete, and the RICS valuation must still be valid (within 3 months) when they do. Coordinate the valuation timing carefully, as it is normally valid for three months and must meet Homes England’s submission requirements..
Yes, and you can staircase more than once. Each partial repayment follows the same process as a full repayment and includes a RICS valuation, a Homes England application, the £200 administration fee, and conveyancing. Those costs add up if you make multiple partial repayments, so factor them in when you're running the numbers.
The 5% floor catches people out because after any partial repayment, you can't leave less than 5% of your home's current market value outstanding. On a property worth £300,000, that's a minimum remaining stake of £15,000 to Homes England. If the remaining balance would be close to the minimum permitted amount, compare the costs and affordability of making a partial repayment with repaying the equity loan in full, and consider taking advice..
Yes, and not every conveyancer handles Help to Buy redemptions, so check before you hire one. Firms that handle straightforward remortgages aren't always set up for this and may not know Homes England's specific requirements. Ask directly whether they've processed a Help to Buy redemption before.
If you're remortgaging at the same time and your lender offers free legal work as part of the deal, check that it covers the Help to Buy redemption specifically. Some "free legal" offers only apply to the mortgage transaction.
If your property has gone down in value, you'll usually repay less because the equity loan is based on your home's value when you repay it, rather than its original purchase price. However, the same lower property value can increase your LTV ratio if you're remortgaging at the same time, which may affect the mortgage rates available to you.
Take both the lower repayment amount and the impact on any remortgage into account before deciding what's right for you.
Costs can include a RICS valuation, Homes England’s administration fee and conveyancing fees. Homes England currently charges a £200 administration fee for full or partial repayment. Valuation and conveyancing costs vary by provider, so get quotations before proceeding. You may also continue to pay the £1 monthly Help to Buy management fee until the equity loan is repaid.
One cost that's easy to overlook is the RICS valuation expiry. If it expires before repayment completes, you'll need a desktop extension from the same surveyor. Ask about this early if your timeline looks tight.
The equity loan lasts for up to 25 years and must be repaid by the end of that term. From year 6, you'll start paying interest, and those interest charges increase each year. If you may not be able to repay it, contact Homes England and take independent legal or financial advice as early as possible. Failing to repay could lead to enforcement action and may put your home at risk.
Remortgaging to repay a Help to Buy equity loan has a few more moving parts than a standard remortgage. Speak to a Habito adviser to compare mortgage rates, understand your options, and make sure the timing works.
Habito is authorised and regulated by the Financial Conduct Authority (FRN 714187).
Whether remortgaging early is right for you comes down to things like early repayment charges, fees, affordability checks, and the deals you actually qualify for.
Your home may be repossessed if you do not keep up repayments on your mortgage.
This article is based on guidance from organisations including MoneyHelper, Citizens Advice, and GOV.UK. Mortgage rules and legal processes can change. Check the latest information or speak to a qualified adviser.
Information is correct at the time of writing and may change. Always check the latest scheme guidance and terms before making a decision.
Last updated: July 2026
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