Help to Buy Remortgage & Equity Loan Repayment Hub

If you bought your home using the Help to Buy Equity Loan, you’ll eventually reach a point where you need to make decisions about the equity loan, particularly as the repayment rules and costs can change over time.

This hub brings the key information together in plain English, so you can understand the moving parts and plan your next step with confidence.

New to the scheme and want the full background, including the price caps and how the purchase structure worked? Read our Help to Buy (Equity Loan) guide for first-time buyers.

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Help to Buy remortgage and equity loan repayment

How the Help to Buy Equity Loan works

The Help to Buy Equity Loan was designed to help buyers purchase a new-build home with a smaller deposit.

In broad terms, the government provided an equity loan of up to 20% of the property value (or 40% in London).

In most cases, the Help to Buy loan sits as a second charge on the property. That means it is repaid in addition to your main mortgage.

For the first five years, interest is typically not charged on the equity loan, although a small monthly management fee applies.

After that initial period:

Interest becomes payable and increases each year.
The equity loan is generally required to be repaid in full when you sell the property, when your main mortgage ends, or after 25 years (whichever comes first).

Because the equity loan is linked to the property value, the amount you repay can change depending on what your home is worth when you redeem.

Why repaying the Help to Buy equity loan can matter

Two factors often drive the decision to repay:

Your repayment amount is based on today’s value

A key misunderstanding is thinking you repay the original equity loan amount.

In reality, the equity loan is repaid as a percentage of the property’s current market value.

For example:

You bought for £350,000 with a 20% equity loan (£70,000).
If your home is now worth £375,000, you don’t repay £70,000.
You repay 20% of £375,000, which is £75,000.

So, if property values rise, the equity loan redemption amount can rise too.

Interest can start to cost more over time

Once the interest-free period ends, you may begin paying interest on the equity loan. The longer the equity loan remains, the longer you may be exposed to those ongoing charges.

Valuations and the role of RICS

Whether you repay when selling or when staying in the property, a valuation is usually required to determine the amount due.

In many cases, the valuation must be carried out by a chartered surveyor who is appropriately qualified and recognised under the scheme requirements (often referenced as RICS). This is important because the valuation needs to be accepted for the repayment calculation.

If the valuation does not meet the scheme’s requirements, it can delay the repayment process and may require further action.

Can you add the Help to Buy equity loan to your mortgage?

In many cases, a remortgage can be used to repay the equity loan, effectively consolidating it into your new mortgage.

This typically involves:

Valuing the property using a surveyor valuation process that meets the scheme requirements.
Applying for a new mortgage to cover:
- repayment of your existing mortgage
- repayment of the Help to Buy equity loan
- relevant fees
Coordinating completion so the equity loan charge is removed from the title.

The exact approach can vary depending on your circumstances, your current mortgage deal, and the timing of your Help to Buy repayment requirements.

Do you have to repay the Help to Buy loan when you remortgage?

Not necessarily.

In practice, there are two broad scenarios:

You remortgage without repaying the Help to Buy equity loan immediately. In this case, the Help to Buy loan remains outstanding after the remortgage.
You remortgage to repay some or all of the Help to Buy equity loan. This may involve using part of the new mortgage and/or other funds to reduce the equity loan balance.

Even when you don’t repay the equity loan straight away, it’s important to understand that the Help to Buy loan has to be dealt with when you sell the property. Planning ahead can help you avoid being forced into a rushed solution later.

What the repayment process usually looks like (without remortgaging)

While the exact steps can vary depending on whether you repay in full or partially, the process generally follows a similar pattern.

Arrange the required valuation
- Ensure it meets the scheme requirements for repayment.
Submit the repayment application
- Provide the valuation and any required supporting information.
Receive the repayment figure
- You will be issued with the redemption information showing the amount due.
Instruct a conveyancer
- Your solicitor typically handles the legal paperwork and ensures the repayment is properly completed.
Complete the payment and discharge the charge
- Once funds are transferred, the relevant charge is removed from the Land Registry.

The remortgage and repayment process: what typically happens

Remortgaging to repay a Help to Buy equity loan is usually a coordinated process between your mortgage lender, the Help to Buy scheme, and your solicitor.

While every case differs, the broad stages are often similar.

Step 1: Arrange a property valuation

To work out the repayment figure, you’ll typically need a formal valuation carried out by an appropriate valuer (often referred to as an RICS valuation in this context).

This valuation is used to estimate the property’s current market value, which then informs the repayment calculation.

Step 2: Complete the Help to Buy repayment process

After the valuation is in place, you’ll submit the relevant repayment request to the Help to Buy scheme along with the required information.

The scheme then issues a redemption figure/letter confirming the amount required to repay the equity loan.

Step 3: Set up your remortgage

In parallel, you’ll progress your remortgage application with a lender. Your mortgage offer and completion timetable will need to align with the redemption timetable so funds are available when the equity loan is redeemed.

Step 4: Legal redemption and completion

Your solicitor will handle the legal aspects of redeeming the equity loan and ensuring the remortgage completes correctly.

In many cases, completion is timed so that the new mortgage and the equity loan repayment happen together, minimising disruption.

Do you need permission to remortgage? (The Deed of Postponement)

If you still have a portion of your Help to Buy equity loan outstanding, you’ll usually need to request a Deed of Postponement.

This is typically handled through your solicitor, who will submit the request to the relevant Help to Buy administrator. It’s worth planning for this because it can affect your timeline, and it’s another reason why remortgaging a Help to Buy property often needs more coordination than a standard remortgage.

Help-to-Buy paperwork: what you may need

Help-to-Buy remortgages often involve more documentation than a straightforward remortgage. While your exact requirements depend on your circumstances, you may be asked for evidence relating to:

Your current mortgage and property details
Proof of income and outgoings
The Help-to-Buy equity loan position (including redemption or consolidation details, where relevant)
Any lender and solicitor requirements for the remortgage process

Having documents ready can help reduce delays, particularly where equity loan redemption is being considered.

Help to Buy remortgage lenders: why lender choice can be important

Not all lenders treat Help to Buy remortgages in the same way.

In practice, homeowners sometimes find that:

their current lender is cautious about affordability
an online affordability tool doesn’t reflect how a lender assesses income and outgoings
lenders may approach certain income types differently

This is where lender selection and how your application is presented can make a difference.

Lenders may consider income and expenditure differently, particularly where you have:

bonus or commission
overtime
self-employed income
multiple income sources
childcare costs or other complex outgoings

A specialist approach can help ensure the remortgage is assessed in the wider market rather than relying on a single lender’s assumptions.

How to approach lender selection for a Help to Buy remortgage

Because Help to Buy remortgages can involve additional constraints, a practical approach is to:

Start with a clear view of your target outcome (switch deal only, repay part, or repay more via staircasing).
Consider how the remaining equity loan affects LTV and affordability.
Discuss your situation with a broker who can help you identify lenders that are more likely to be able to accommodate the Help to Buy position.

This can help reduce wasted time and avoid pursuing options that may not align with how lenders treat the equity loan.

82+ lenders

Full repayment vs partial repayment (staircasing)

Repaying the equity loan doesn’t always have to be an all-or-nothing decision.

Staircasing (partial repayment)

Staircasing is the process of repaying part of the equity loan, which can reduce the amount of interest you pay going forward.

Key points to understand:

Partial repayment is calculated using the current market value of the property.
A formal valuation is required to determine the redemption amount.
Staircasing is generally done in lump sums, not monthly payments.
Staircasing is subject to minimum percentage rules (often described as 10% increments), but the exact requirements can depend on the scheme terms applicable to your loan.

How staircasing can help

For some homeowners, staircasing can be a practical way to:

reduce interest without needing to repay everything immediately
manage cashflow while planning for a later full redemption
align repayment with life events or future mortgage changes

Whether full repayment or staircasing is the better route depends on your goals, your affordability, and how your property value may change over time.

When is the best time to apply?

Timing can be crucial because remortgaging and equity loan redemption involve multiple steps: valuation, mortgage underwriting, legal work, and coordination.

When planning your Help to Buy remortgage, it’s helpful to consider:

whether you are still within a fixed-rate period and facing any early repayment charges
when your current mortgage deal ends
when Help to Buy interest payments begin (after the initial period)
how quickly you need the process completed

Many homeowners start planning around 4–6 months before their current deal ends, allowing time for:

valuation and documentation
mortgage application and underwriting
scheme authority steps
legal work and completion coordination

When you must repay the equity loan

While some homeowners choose to repay earlier, there are also situations where repayment is required.

You may need to repay the Help to Buy equity loan if, for example:

the equity loan term reaches its end point (commonly 25 years unless extended)
you pay off your first-charge repayment mortgage without replacing it
you sell the property
you breach the terms of the repayment mortgage or the Help to Buy arrangements
you enter certain insolvency processes

Understanding your timeline can help you avoid last-minute pressure and plan a route that fits your circumstances.

Selling your home with a Help to Buy equity loan

Selling is often the most time-sensitive scenario because the repayment calculation and valuation need to align with the sale timetable.

Key considerations include:

You’ll need to follow the scheme’s process for involving the equity loan administration arrangements before proceeding with a sale.
A valuation is required to calculate the repayment amount.
The repayment amount will be based on the property value at the point of repayment.

Because the equity loan repayment can affect the net proceeds of the sale, it’s worth building this into your planning early, especially if you’re relying on the sale proceeds to fund a deposit on your next home.

Costs and fees to plan for

Help to Buy remortgaging and equity loan redemption can involve several costs. These commonly include:

scheme administration fees
a valuation by an approved surveyor process
legal fees for the conveyancing and redemption work
mortgage-related fees (where applicable)
potential early repayment charges on your existing mortgage if you remortgage before the end of a fixed period

Planning for these costs helps ensure the remortgage remains affordable and the repayment route is financially workable.

Early repayment charges (ERCs)

If you’re leaving your current mortgage deal before the end of the fixed period, there may be early repayment charges. These charges depend on your existing mortgage contract and the timing of your switch.

Mortgage broker fees (where applicable)

Some borrowers pay a broker fee, while others may find it’s incorporated into the mortgage arrangement. The key is to understand how any broker fee is structured so you can compare the overall cost of the remortgage.

Choosing the right approach for your circumstances

The “best” option isn’t the same for everyone. A decision to repay in full, staircasing in stages, or timing a remortgage around your mortgage deal depends on factors such as:

your monthly affordability and cashflow
how much equity loan interest you expect to pay if you delay
whether early repayment charges apply
your property value outlook
your future plans for the home

A careful review of the numbers and timing can help you choose a route that aligns with your goals.

Common questions about Help to Buy repayment and remortgaging

In many cases, it’s possible to repay earlier than the end of the interest-free period. Repaying sooner can reduce the time you pay interest on the equity loan, but the repayment amount will still be based on the property’s current market value at the time of redemption.

The repayment amount is still generally calculated using the property’s current market value at redemption. If the value has decreased, the redemption figure may be lower than it would have been at purchase.

Not necessarily. Partial repayment can help manage cashflow, but it can also mean multiple valuation and legal steps over time. The most suitable approach depends on your property value outlook, your finances, and your plans for the home.

The main costs typically fall into administration fees (where applicable), survey fees (if a survey is required), legal fees, and any mortgage broker fees. Whether equity loan consolidation or redemption is part of your plan can significantly affect which costs apply.

Not necessarily. A survey is more likely to be required when consolidating the equity loan, or where the lender’s process calls for it. Your remortgage route will determine what’s needed.

In most cases, yes. Legal work is usually required to complete the remortgage and handle any equity loan-related processes.

It may be possible in some circumstances to remortgage your mortgage element while leaving the equity loan unchanged. However, the exact approach depends on your current Help-to-Buy terms and what the lender requires.

Government guidance

For the official repayment process and how remortgaging fits in, see:

How to repay your equity loan when you remortgage (GOV.UK)