Help to Buy remortgage and equity loan repayment

A Help to Buy remortgage replaces the repayment mortgage on a home bought with a Help to Buy equity loan. The equity loan sits behind the mortgage as a second charge, so the new lender must accept it, and Homes England must give consent before a remortgage to a new lender completes (GOV.UK, accessed 20 Oct 2026).

Many borrowers remortgage when an introductory deal ends, which is often around the time interest on the equity loan begins. Staying with the same lender on a product transfer usually needs no Homes England consent if the borrowing does not rise, while moving lender or borrowing more needs an application, a fee and, where the loan is repaid, a valuation (GOV.UK Help to Buy administration fees, accessed 20 Oct 2026).

Not every lender accepts a remaining Help to Buy equity loan behind its mortgage, and some only lend when the loan is repaid at the same time. Lenders that do accept it assess affordability on the mortgage plus any equity loan interest, in the same way as at purchase.

A remortgage can raise extra borrowing to repay the equity loan in full or in part. The repayment is the equity loan percentage of the home's current market value, set by an independent RICS valuation, so a rise in value raises the sum owed and a fall lowers it (GOV.UK, accessed 20 Oct 2026).

Repaying in full removes the second charge, stops the monthly management fee and ends the interest that starts in the sixth year. The new mortgage is then larger, so lenders check that the higher payment is affordable on income and outgoings, with a stress test.

Homes England charges an administration fee to process a repayment, and the borrower pays for the valuation and the legal work. How the RICS report must be prepared, and how long it stays valid, is explained on the Help to Buy valuation page.

Part repaying a Help to Buy equity loan, often called staircasing, reduces the share of the home's value owed to the government. In England the smallest part repayment is 10% of the market value, and each part repayment needs its own valuation and administration fee (GOV.UK, accessed 20 Oct 2026).

Staircasing lowers the interest charged from the sixth year, because interest is worked out on the share of the original loan still owed. It also reduces the amount repaid on a sale, because the remaining percentage is applied to a smaller share of the future value.

Some borrowers part repay with savings rather than a remortgage. Others combine a part repayment with a remortgage so that the extra borrowing and the staircasing complete together, which keeps to one set of legal work and one valuation where the timing allows.

The costs of a Help to Buy remortgage include the lender's arrangement and valuation fees, legal fees, the RICS valuation for the equity loan, and a Homes England administration fee. The administration fee is £115 for a remortgage and £200 for a full or part repayment of the equity loan (GOV.UK Help to Buy administration fees, accessed 20 Oct 2026).

Early repayment charges on the existing mortgage may also apply if the remortgage completes before the current deal ends. Comparing the total cost of each option over the new deal period, rather than the headline rate alone, shows which route costs less.

Interest on the equity loan itself does not count towards repaying it, and neither does the monthly management fee. Rates on the main mortgage depend on the loan-to-value after any repayment, which the Help to Buy rates page covers alongside equity loan interest.

There is no single right time to repay a Help to Buy equity loan. The loan must be repaid in full on a sale, at the end of the equity loan term or when the main mortgage is repaid, and it can be repaid at any time before then (GOV.UK, accessed 20 Oct 2026).

Borrowers weighing up an early repayment often compare the equity loan interest due from the sixth year with the cost of extra mortgage borrowing, and consider how house prices may move. A rising market raises the sum owed, while a falling one lowers it, so the timing carries risk either way.

A broker who arranges Help to Buy remortgages can compare lenders that accept the equity loan with those that need it cleared. Firms can be compared on the Help to Buy brokers page.