Help to Buy Remortgage (2026): How to Repay the Equity Loan & Exit the Scheme
Bought with a Help to Buy equity loan? From year 6 the interest kicks in — and because you repay a percentage of your home’s current value, house-price growth can mean paying back far more than you borrowed. Remortgaging to clear the equity loan is how most people exit. Here’s exactly how it works.
Approaching your year-5 anniversary? Timing is everything.
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Quick answer
A Help to Buy remortgage is a new mortgage that lets you repay the government’s equity loan without selling — usually by borrowing more against your home to clear both your existing mortgage and the equity loan in one go. Most people do this as they approach the end of the five-year interest-free period, because from year 6 the equity loan starts charging interest (from 1.75% of the original loan amount, rising every year), and that interest never reduces the balance — it’s a pure cost. The critical thing to understand is that you don’t repay what you borrowed — you repay the same percentage of your home’s current market value. So a 20% equity loan on a £250,000 home bought in 2019, now worth £310,000, means repaying £62,000, not the £50,000 you originally borrowed — house-price growth works against you. To remortgage and repay, you need a RICS Red Book valuation (which Homes England requires — an estate agent’s valuation won’t be accepted), an application to the scheme administrator (Target HCA), and a solicitor to coordinate everything. You can repay the loan in full, partially (staircasing, in 10% chunks), or remortgage while keeping the equity loan in place. The whole process needs careful timing because the RICS valuation is only valid for three months. As of August 2026.
In this guide
Why people remortgage out of Help to Buy
The Help to Buy equity loan scheme (now closed to new applicants) helped many first-time buyers onto the ladder with just a 5% deposit, by lending them up to 20% of the property’s value (40% in London) interest-free for five years. But that five-year window is the catch: as it ends, homeowners face a decision, and remortgaging is the most common way to deal with it. People remortgage out of Help to Buy for several reasons — to avoid the interest that starts in year 6, to escape the uncertainty of an equity loan that grows with house prices, to simplify future borrowing (the equity loan puts a second charge on your home that complicates every future remortgage), and often to access better mortgage rates because clearing the loan lowers your loan-to-value — a common reason people look at when to remortgage. If you bought during the 2020–2021 peak of the scheme, you’re likely reaching this point now, which is why so many Help to Buy owners are reviewing their options. It’s a specific type of remortgage with its own rules, distinct from a standard switch.
The year-6 interest trap
Interest that never reduces what you owe
The Help to Buy equity loan is interest-free for the first five years. From the start of year 6, monthly interest kicks in — and here’s the sting: those interest payments do not reduce the loan balance at all. They’re a pure additional cost on top of your normal mortgage.
Interest starts at 1.75% of the amount you originally borrowed, and rises every April — by RPI + 1% for loans taken out before December 2019, or CPI + 2% for loans from 2021–2023. So on a £50,000 original equity loan, year 6 interest is around £875 a year (about £73 a month), and it climbs annually from there. You’ll also keep paying the £1 monthly management fee you’ve had throughout.
Because the interest only ever goes up and never touches the balance, the year-5 anniversary is the natural moment to act — most people want to either clear the loan or reduce it before that interest clock starts. Leaving it running is simply paying for nothing.
The house-price-growth surprise
This is the single biggest shock for Help to Buy owners, and it’s essential to understand before you remortgage. You don’t repay the amount you borrowed — you repay the same percentage of your home’s current market value. The equity loan is exactly that: a share of your property’s value, not a fixed cash sum. So if your home has gone up, you owe more than you borrowed.
A worked example: you bought a new-build in 2019 for £250,000 with a 20% equity loan of £50,000. A RICS valuation in 2026 comes back at £310,000. You repay 20% of the current value — £62,000 — which is £12,000 more than you borrowed. That extra £12,000 is pure house-price growth handed to the government’s share. The flip side: if your home has fallen in value, you’d repay less than you borrowed. Either way, the amount is based on the current RICS valuation, which is why getting that valuation right is so important — and why remortgaging to clear the loan while working out an accurate value matters. Understanding your loan-to-value and how much you can borrow to cover this is the starting point.
Your three options
When you remortgage a Help to Buy property, you generally have three routes:
- Full redemption — remortgage to a bigger new mortgage that pays off both your existing mortgage and the entire equity loan, clearing the government’s share completely. You then own 100% of your home with a single mortgage, no equity loan, no second charge, no future interest. This is the cleanest exit.
- Partial repayment (staircasing) — repay part of the equity loan, in minimum 10% chunks of the property’s current value. This reduces the government’s share (and therefore the future interest, which is recalculated on the smaller amount), without needing to borrow the full redemption figure. You can staircase more than once over time.
- Remortgage but keep the equity loan — switch your main mortgage to a new deal (better rate or new lender) while leaving the equity loan in place. This doesn’t clear the loan, but if you’re not borrowing more you may be able to do it more simply. Note that not every lender offers products that sit alongside a remaining Help to Buy charge.
Which route fits depends on your finances, your property’s value, and how much you can borrow — a decision worth taking proper advice on, since the numbers differ significantly between them.
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The remortgage & repayment process
Repaying the equity loan via remortgage is a coordination exercise across several parties, and the steps need to line up carefully:
- 1. Get a RICS Red Book valuation. You must have an independent valuation from a RICS-registered surveyor (MRICS or FRICS). Homes England and its administrator Target HCA will reject any valuation from an estate agent — it has to be a formal Red Book report. It typically costs £300–£600 and is only valid for three months, so timing is critical.
- 2. Apply to Homes England / Target HCA. Submit your application with the RICS valuation and pay the admin fee (around £200). They calculate your exact repayment figure and issue a redemption statement.
- 3. Arrange the remortgage. Apply for a new mortgage large enough to repay your existing mortgage plus the equity loan (for full redemption). Your mortgage offer needs to align with the redemption figure and timing.
- 4. Legal work. A solicitor coordinates everything — the redemption certificate, the fund transfer (after the lender’s valuation), and removing the equity loan’s second charge from your title at HM Land Registry (a Land Registry fee of £20–£45 applies).
- 5. Completion. The new mortgage funds are drawn, the equity loan is repaid, the charge is removed, and you’re out of the scheme.
Budget for total fees of roughly £1,400–£1,600 on top of the redemption sum (valuation, admin fee, solicitor, Land Registry). The redemption statement from Target HCA can take 10–15 working days, and the whole process — the remortgage timeline included — must complete within the three-month validity of your RICS valuation — miss that window and you may need (and pay for) a fresh valuation. This is exactly the kind of multi-party remortgage where careful coordination pays off.
Why the right lender matters
Not every lender handles Help to Buy remortgages well, and this is where it genuinely matters who you apply to. Some lenders don’t offer products that co-exist with a remaining equity loan charge (relevant if you’re staircasing rather than fully redeeming). Others assess the combined affordability — your bigger new mortgage covering the redemption — differently, so the amount you can borrow varies significantly between lenders. And if you’re now paying year-6 interest, that extra outgoing reduces your affordability with some lenders more than others. On top of that, if your income has changed since you bought (many Help to Buy buyers were early-career first-time buyers who now earn more, or have become self-employed), the right lender for your current situation may be different from your original one. A whole-of-market broker who understands Help to Buy redemptions can identify which lender reads your combined position best — which can be the difference between borrowing enough to clear the loan or falling short. Given the RICS valuation’s three-month clock, getting matched to the right lender early keeps the whole thing on track.
The bottom line
Remortgaging is how most people exit a Help to Buy equity loan — clearing it before the year-6 interest starts, escaping a loan that grows with house prices, and simplifying future borrowing. The key facts: you repay a percentage of your home’s current value (so growth means paying back more than you borrowed), you need a RICS Red Book valuation (valid three months), and you can redeem fully, staircase partially, or remortgage while keeping the loan. It’s a multi-party process on a tight timeline, and the lender you choose materially affects how much you can borrow to clear it. Start well before your year-5 anniversary, get an accurate valuation, and line up a lender who handles Help to Buy properly.
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Help to Buy remortgage: FAQs
Can I remortgage to pay off my Help to Buy equity loan?
Yes, and it’s the most common way to clear the equity loan without selling. You remortgage to a new, larger mortgage that pays off both your existing mortgage and the government equity loan in one go, leaving you owning 100% of your home with a single mortgage and no equity loan. To do this, you need a RICS Red Book valuation to establish your home’s current market value (which determines the repayment amount), an application to Homes England’s administrator Target HCA, and a solicitor to coordinate the redemption and remove the equity loan’s second charge from your title. You need to be able to borrow enough to cover both the existing mortgage and the repayment figure, so affordability and your loan-to-value are key.
How much do I repay on my Help to Buy equity loan?
You repay the same percentage of your home’s current market value as you originally borrowed — not the amount you borrowed. So if you took a 20% equity loan, you repay 20% of what your home is worth now, based on a RICS valuation. For example, a 20% loan on a £250,000 home bought in 2019, now valued at £310,000, means repaying £62,000 — £12,000 more than the £50,000 originally borrowed, because the house has grown in value. If your home has fallen in value, you’d repay less than you borrowed. This is the biggest surprise for Help to Buy owners: house-price growth increases what you owe, since the loan is a share of your property’s value, not a fixed cash sum.
When does Help to Buy interest start?
Help to Buy equity loan interest starts from the beginning of year 6 — the fifth anniversary of your loan. The first five years are interest-free. From year 6, you pay monthly interest starting at 1.75% of the amount you originally borrowed, and this rate rises every April, by RPI plus 1% for loans taken before December 2019, or CPI plus 2% for loans from 2021 to 2023. Crucially, these interest payments do not reduce the loan balance — they’re a pure additional cost on top of your normal mortgage. On a £50,000 original equity loan, year 6 interest is around £875 a year (about £73 a month), rising annually. This is why many people aim to remortgage and repay the loan before their year-5 anniversary.
Do I need a valuation to remortgage my Help to Buy?
Yes, if you’re repaying any of the equity loan you need a RICS Red Book valuation — a formal report from an independent, RICS-registered surveyor (MRICS or FRICS qualified). Homes England and its administrator Target HCA will reject any valuation from an estate agent, because it must follow the mandatory RICS Red Book standards. The valuation establishes your home’s current market value, which determines exactly how much you repay. It typically costs £300 to £600 and is only valid for three months, so timing is critical — the whole redemption must complete within that window or you’ll need a fresh valuation. If you’re remortgaging your main mortgage only, without repaying any of the equity loan, you don’t need a Help to Buy valuation.
What is staircasing on Help to Buy?
Staircasing is partially repaying your Help to Buy equity loan, rather than clearing it all at once. You can repay in minimum chunks of 10% of your property’s current market value, and you can staircase more than once over time. Each partial repayment reduces the government’s share of your home and, importantly, reduces the future interest, which is recalculated on the smaller remaining amount. The process is similar to full redemption — you need a RICS valuation (valid three months) for each staircasing step and an application to Target HCA. Staircasing is useful if a full buyout isn’t affordable yet but you want to reduce your interest exposure and gradually increase your ownership share. Note that if you’re remortgaging to staircase, a Deed of Postponement between your lender and Homes England may be needed.
How long does a Help to Buy remortgage take?
It varies, but you should allow a couple of months and coordinate the steps carefully because of the three-month RICS valuation validity. The valuation itself is usually turned around in a few working days. Once submitted with your application and admin fee, Target HCA typically issues a redemption statement within 10 to 15 working days (sometimes faster if chased). Your remortgage application runs alongside, with a mortgage offer often taking 10 to 20 working days. The solicitor then coordinates completion, the fund transfer and removing the second charge. The critical constraint is that everything must complete within the three-month window your RICS valuation is valid for, so the valuation, redemption statement, mortgage offer and legal work all need to line up.
- GOV.UK — Paying interest on your Help to Buy equity loan
- HomeOwners Alliance — Help to Buy valuations explained
- MoneyHelper — free, government-backed money guidance
Important information
nextmove is an introducer, not a lender, mortgage adviser, surveyor or conveyancer. This article is general information only and does not constitute financial, legal or property advice. The Help to Buy equity loan scheme, its repayment rules, interest rates, valuation requirements and administration (by Homes England and Target HCA) are set by government and may change; figures and fee estimates here are illustrative and correct only to the best of our knowledge as of 2026. Your repayment amount depends on your specific loan percentage and a formal RICS valuation. We introduce you to FCA-regulated, whole-of-market mortgage brokers who can advise on Help to Buy remortgages and assess your circumstances, and we may receive a fee or commission for doing so.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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