Help to Buy: what existing borrowers need to know

The Help to Buy Equity Loan scheme in England closed to new applicants in October 2022. If you have an existing loan, this guide covers repayment, interest charges and how it affects your mortgage options.

Last checked 13 September 2026. Editor: Kris · editorial standards

Five sections. Each anchored to a first-party source, checked 13 September 2026.

1. How the equity loan works

The Help to Buy Equity Loan in England provided up to 20% of the purchase price (40% in London) from the government, interest-free for the first five years. From year six, an annual management fee of 1.75% of the loan's current market value applies, rising each April by RPI plus 1%. The loan is not a fixed cash amount: it is calculated as a percentage of the property's market value, so if the property rises in value, so does the amount you repay (GOV.UK — Help to Buy: Equity Loan).

2. Interest charges from year six

If your initial five-year period has ended, you will be paying the 1.75% management fee on the loan's current market value. That market value is reassessed each time you make a partial or full repayment, which requires a RICS-certified valuation. The management fee applies until the loan is fully repaid, and it rises annually, so it becomes more expensive over time in both percentage and cash terms as both the rate and the property value increase.

3. Repaying or staircasing

You can repay part or all of the equity loan at any time. Partial repayments must be at least 10% of the property's current market value (not 10% of the original loan). Each repayment requires an independent RICS valuation at your cost (typically £250–£500), and Homes England must approve the sale price used. Full repayment at sale requires the same process. Contact your equity loan administrator (Target HCA for most borrowers) to initiate a repayment or to get the current repayment figure.

4. Impact on remortgaging

The equity loan sits alongside your first charge mortgage and reduces the equity available to a remortgage lender. Not all lenders will remortgage a property with a Help to Buy equity loan outstanding; those that do require Homes England's consent to a second charge and may restrict the loan-to-value. Your broker needs to know the equity loan is in place before they search for remortgage products, because it affects which lenders can consider the application and what rates are available.

5. When you sell

When you sell, the equity loan is repaid from the sale proceeds at the same percentage of the sale price as it was of the original purchase price. If you bought with a 20% equity loan and the property has gone up, 20% of the sale price goes to Homes England. You cannot retain the equity loan when you move — it is tied to the original property and must be repaid on sale.

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General information, not advice. Mortgage Brokers List is a directory and a set of free tools. Only an FCA-authorised adviser can recommend a mortgage for your circumstances. See our editorial standards.