How does Help to Buy repayment work?
The Help to Buy equity loan scheme ran from 2013 to March 2023, helping over 383,000 households buy a new-build home with just a 5% deposit. The government provided an equity loan of up to 20% of the purchase price (40% in London), which is interest-free for the first five years.
Key rules for repaying your equity loan
- Repayment is based on current market value — not your original purchase price. If you borrowed 20% and your home is now worth £340,000, you repay £68,000.
- Fees start in year 6 at 1.75% of the original loan amount, then rise each year by the Retail Price Index (RPI) plus 1%.
- Partial repayments (staircasing) are allowed in blocks of at least 10% of the property's current value, requiring a new valuation each time.
- Full repayment is required when you sell the property, remortgage to repay, or reach the end of your main mortgage term (maximum 25 years).
When should you repay early?
Many homeowners consider repaying before the fees erode their equity. As the chart above shows, annual fees can escalate significantly after year 10 — particularly in high-inflation environments. If you have built sufficient equity through house price growth, remortgaging to repay the equity loan can save thousands in cumulative fees.
Help to Buy vs shared ownership
Unlike shared ownership, Help to Buy does not involve paying rent on the government's share. However, the annual management fees from year 6 function similarly to an escalating cost. Use our calculator above to compare the total cost of keeping the loan versus repaying early through remortgage.
Important
The Help to Buy scheme closed to new applications on 31 October 2022, with completions ending 31 March 2023. This calculator is designed for existing Help to Buy borrowers planning their repayment. RepayWise provides financial information, not regulated financial advice. Speak to a qualified mortgage adviser before making repayment decisions.