Help to Buy Remortgage

Can I remortgage to repay my Help to Buy loan?

Yes, most clients can remortgage to repay their Help to Buy equity loan, either in part or in full, provided the numbers work.

This guide is for current Help to Buy borrowers in England and London considering their remortgage options. Remortgaging a Help to Buy loan can help you reduce costs, gain full ownership, or access better mortgage deals. Consult a Specialist Broker experienced in Help to Buy remortgages as many lenders have strict rules or limited products for these loans.

The key factors are your income, credit profile, current property value, and how much equity you have built up since you first stepped onto the property ladder. The Help to Buy scheme was launched in 2013 and closed to new applications on 31 October 2022, so new applications no longer apply, but existing borrowers can still remortgage or refinance their current loans. If your loan-to-value (LTV) stacks up and you can afford the higher monthly payments, remortgaging to clear the government loan is often the smartest long-term move.

Fox Davidson are whole-of-market mortgage brokers who regularly help clients remortgage away from Help to Buy, including complex cases such as flats with cladding issues, London properties with 40% equity loans, and both single and joint applicants. Consulting a mortgage broker early in the remortgaging process can help you access the best deals, navigate scheme-specific requirements, and improve your chances of a successful application.

Your three main options at a glance:

• Keep the equity loan – switch your mortgage deal without clearing the government’s share. A like-for-like remortgage involves switching to a new mortgage deal while keeping the full equity loan outstanding.
• Staircase (part-repay) – reduce the equity loan by repaying at least 10% of your home’s current market value. Partial repayment, or staircasing, requires increasing your mortgage to repay part of the loan in increments of at least 10% of the property’s current market value.
• Clear the loan completely – remortgage to a new lender and repay the full Help to Buy balance. Full repayment involves borrowing more on your new mortgage to pay off the entire 20% (or 40% in London) equity loan.

We recommend speaking to Fox Davidson six months before your current fixed rate ends, or before the end of year five of your equity loan when interest charges begin. We recommend speaking to a mortgage broker 6 months before your deal ends. This gives enough time to explore every option and avoid slipping onto an expensive standard variable rate.

Ready to see what’s possible? Contact Fox Davidson for a free, no-obligation Help to Buy remortgage review.

How the Help to Buy Equity Loan Works

The Help to Buy equity loan scheme in England closed to new applications in October 2022, with legal completions wrapping up by 31 March 2023. However, if you already have an equity loan, you still need to manage it and eventually repay it. The Help to Buy scheme was specifically designed to assist first time buyers in getting onto the property ladder by providing government-backed support. Understanding how the scheme works is essential before you can plan your remortgaging process.

For properties bought between 2013 and 2021, the structure was straightforward: you put down a 5% deposit, took out a repayment mortgage of up to 75%, and the government provided an equity loan of up to 20% of the purchase price (up to 40% in London under the Help to Buy London scheme).

Here’s the critical point many buyers miss: the equity loan is a percentage of your property’s market value at repayment, not a fixed pound amount. For example, if you bought in 2016 for £250,000 with a 20% loan, you received £50,000 from the government. If your home is now worth £325,000, repaying that 20% share means paying back £65,000, not the original £50,000. The government shares in your property’s growth.

The cost timeline matters too. The buy loan is interest free for the first five years. From year six, you start paying interest charged at 1.75%, which then increases each April by the consumer price index plus 2% (or RPI plus 1% for the earliest schemes). All applicants are required to pay a £1 monthly management fee until the loan is fully repaid, payable to the buy customer service team.

You must repay the full loan when you sell the property, at the end of 25 years, or when you remortgage to a product that pays off the equity loan—whichever happens first.

Different regional schemes, such as those in Wales, have their own rules. Fox Davidson can advise case-by-case, but this article focuses mainly on Help to Buy England and Help to Buy London, which cover the vast majority of existing borrowers.

Your Options When Remortgaging a Help to Buy Property

The right deal for you depends on several factors: your income and affordability, how much equity you’ve built, your property value today, and your future plans. Are you staying long-term or thinking of moving in a few years? Do you have savings to contribute, or will the remortgage need to fund everything?

Let’s break down the three main routes.

Option 1: Remortgage and Keep the Help to Buy Equity Loan

This option means switching your mortgage deal—either with your existing lender or a new lender—without increasing your borrowing to clear the government loan. You keep the equity loan in place and continue managing it separately.

If you stay with your current lender and don’t borrow more money, you usually do not need formal consent from Homes England (the Help to Buy administrator). However, you must keep up with your equity-loan interest payments and fees once you’re past the first five years.

Some clients choose this route because they don’t yet have enough equity or income to absorb the Help to Buy loan into their mortgage. Perhaps property values haven’t risen much, or circumstances mean they can’t afford higher monthly payments right now. In the early years of the buy scheme, when the loan is still interest free, there’s less urgency to clear it.

The drawbacks? You remain exposed to future house price growth—you’ll still owe the same percentage, so if values keep rising, the amount you owe in pounds keeps growing too. You’ll also continue paying Help to Buy interest that rises annually, eating into your monthly budget.

Fox Davidson can compare the cost of keeping versus clearing the loan over the next five to ten years. Sometimes the numbers favour waiting; often they don’t.

Option 2: Staircasing – Remortgage to Repay Part of the Help to Buy Loan

Staircasing means making a part-repayment of at least 10% of your home’s current market value, thereby reducing the government’s percentage share. It’s a middle-ground approach that moves you towards full ownership without the financial leap of clearing everything at once. Partial repayment, or staircasing, requires increasing your mortgage to repay part of the loan in increments of at least 10% of the property’s current market value.

Here’s a specific example. Your property is now valued at £300,000. The minimum 10% staircasing means repaying £30,000 worth of equity. If your original equity loan was 20%, a 10% staircase might reduce the loan from 20% to 10% of the property value. You’ve halved the government’s stake.

Clients typically fund this by remortgaging to a higher mortgage balance with a new lender, or by combining savings with a remortgage. You’ll need a RICS valuation report to confirm the current market value before Homes England will process the repayment.

Staircasing can improve your future buy remortgage deals because you’ll have a smaller second charge on the property, making you more attractive to many lenders. It’s also a way to gradually move towards full ownership while keeping monthly payments manageable.

Fox Davidson can help model how much to staircase and source lenders that specifically allow capital-raising to repay part of a Help to Buy loan. Not all lenders offer this flexibility, so having a broker who knows the market is essential.

Option 3: Remortgage to Repay the Help to Buy Loan in Full

This is often the long-term goal for most borrowers: remortgage to a new lender, increase your mortgage balance enough to clear the equity loan, and remove the government’s charge from your property entirely. Full repayment involves borrowing more on your new mortgage to pay off the entire 20% (or 40% in London) equity loan.

Let’s work through a full example. You bought in 2015 for £300,000 with a 20% equity loan (£60,000). Your original mortgage was £225,000. If your property is now worth £400,000, repaying the 20% means paying back £80,000. Your new mortgage might need to rise from, say, £210,000 (after years of repayment) to around £290,000 to cover the equity loan repayment and fees—subject to affordability.

Key benefits of full repayment:

• Complete ownership of any future price growth
• No more Help to Buy interest or the £1 monthly admin fee
• Access to a wider choice of mainstream remortgage deals
• Simpler finances with just one lender to manage

The main trade-off is that your monthly mortgage payments may rise because you’re borrowing more money. An affordability assessment is vital, and sometimes extending the mortgage term helps keep payments manageable.

Fox Davidson specialise in structuring these full-repayment remortgages, particularly for properties now worth £250,000 to over £1 million, where the equity loan repayment is substantial.

Step-by-Step Process to Remortgage and Repay Your Help to Buy Loan

This section provides a practical, chronological checklist from six months before your current deal ends through to completion. Following these steps helps avoid delays and ensures you’re prepared at each stage. You will need a solicitor to handle the legal aspects, including coordination with Homes England and the Land Registry.

1. Step 1 – Check your current position
2. Review your current mortgage statement and Help to Buy account. Note your outstanding mortgage balance, how many years since you completed the purchase, your current interest rate, when your fixed rate ends, and whether you have any mortgage arrears or missed payments on the equity loan. Request your statements if you don’t have recent copies. You must also contact your current mortgage lender to get a redemption statement before applying for permission to remortgage.
3. Step 2 – Speak to Fox Davidson for an initial assessment
4. We check your income, monthly expenditure, credit profile, estimated property value, and target outcome (keep, staircase, or clear the loan). This initial conversation usually gives a clear indication of what’s achievable. Property valuation is crucial at this stage, especially for determining if you are in negative equity, as this will affect your remortgaging options.
5. Step 3 – Obtain a RICS valuation
6. Where you’re repaying all or part of the equity loan, the Help to Buy administrator requires a valuation report from a RICS-registered surveyor. The report must be less than three months old at the time of repayment and follow specific criteria. Fox Davidson can explain what’s needed and how to arrange this.
7. Step 4 – Request redemption figures
8. You’ll need a redemption statement from your current lender showing your outstanding mortgage balance, plus a repayment figure from Homes England for your equity loan. Together, these tell you the total you need to clear and how much your new mortgage must cover. If you are changing lenders or borrowing more, you must apply to Homes England for permission. You need to settle any outstanding payments before you can remortgage and borrow more money. You may be able to borrow more money when you remortgage to pay off leasehold or mortgage arrears, but this must be approved by the Help to Buy administrator and is considered on a request individually basis.
9. Step 5 – Fox Davidson sources suitable lenders and products
10. We search the whole market for lenders offering competitive remortgage deals for Help to Buy properties. We look at loan-to-value ratios, arrangement fees, early repayment charges on your current deal, and whether the lender is comfortable with Help to Buy full or partial repayment. Some building societies and high street banks are more flexible than others. Your new mortgage lender must be qualified to offer Help to Buy remortgages.
11. Step 6 – Apply for the new mortgage
12. You’ll typically need to provide ID, proof of income, bank statements, your existing mortgage statement, and your Help to Buy documents. Fox Davidson handles submission and lender liaison, chasing progress and resolving any queries.
13. Step 7 – Obtain Help to Buy administrator consent
14. For remortgaging with capital raising, you need formal permission from Homes England. This involves completing an application form, paying an administration fee, and providing your valuation report and solicitor details. The consent is usually valid for six months. If your application to remortgage is accepted, you must complete the remortgage within six months. If you do not complete within the six-month permission period, you may have to repeat the application process. You also need to ensure all outstanding payments are settled before completion. If you are changing lenders or borrowing more, you must apply to Homes England for permission, and any request to borrow more to pay off leasehold or mortgage arrears will be reviewed on a request individually basis by the Help to Buy administrator.
15. Step 8 – Conveyancing stage
16. Your solicitor or conveyancer handles the legal work. If you’re keeping some equity loan, they’ll prepare a Deed of Postponement so your new mortgage takes first charge priority. If you’re repaying in full, they’ll arrange the removal of the equity charge from your property.
17. Step 9 – Completion
18. The new lender releases funds. Your solicitor repays your old mortgage and the Help to Buy loan amount (full or part). You move onto your new mortgage offer with fresh terms. The Help to Buy administrator updates your account, and if you’ve repaid in full, your relationship with the buy scheme ends.

Typical timeline: Expect six to ten weeks from mortgage application to completion, though this varies with valuation turnaround and legal complexity. Starting early gives you breathing room.

Key Things to Check Before You Remortgage a Help to Buy Loan

Before you start the remortgaging process, certain issues can delay or derail your application. Here’s what to check in advance.

• AffordabilityLenders will stress-test your monthly payments at higher rates, particularly where you’re increasing the mortgage amount to clear the equity loan. If you have significant unsecured debts—credit cards, personal loans, car finance—consider reducing these before applying. Lower outgoings mean you can borrow more. If you want to remortgage and borrow more money, you will need permission from the Help to Buy administrator.
• Loan-to-value (LTV)The most attractive remortgage products often require LTV at or below 85% or even 75%. Rising property values since you bought can help improve your LTV position. However, if your property hasn’t grown in value—or has fallen—your options narrow significantly.
• Credit historyMissed payments on any credit agreements, defaults, CCJs, or payday loans in your history will affect what lenders offer you. This includes missed payments on the Help to Buy equity loan itself. We recommend obtaining a full credit report from Experian, Equifax, or TransUnion and sharing it with Fox Davidson early in the process.
• ArrearsHaving arrears on the Help to Buy equity loan or on your main mortgage restricts your remortgage options considerably. Some lenders won’t consider applications with any arrears in the past 12 months. If you’re behind on payments, try to clear them or agree a repayment plan before attempting to remortgage.
• Property issuesCertain property types create complications:

  If you have made or are planning structural alterations to your property, you may need permission from the Help to Buy administrator. Structural alterations can also affect your borrowing capacity during the remortgage process.

  Fox Davidson regularly helps clients navigate these scenarios, finding lenders happy with properties that others reject.

  • Flats with external cladding may require an EWS1 form and specialist lenders
  • Short leases (under 80 years remaining) limit lender choice
  • Non-standard construction (e.g., timber frame, concrete) needs specific valuation
• Fees and costsBudget for the full cost of remortgaging, which typically includes:

  Cost	Typical range
  RICS valuation	£150–£500
  Help to Buy administration fee	£115 (current rate)
  Lender arrangement fee	£0–£1,999
  Legal fees	£500–£1,500
  Early repayment charges (if applicable)	Varies by lender

  Fox Davidson totals these up for clients before you commit to anything, so there are no surprises.

Special Scenarios: London, Negative Equity, and Future Plans

Different circumstances require tailored advice. Here’s how we approach three common situations.

London (up to 40% equity loan)

If you bought in London using the Help to Buy London scheme, the government may own up to 40% of your property. With strong price growth in many London boroughs, that 40% share can represent a very large sum to repay—potentially £200,000 or more on a £500,000 property.

Fox Davidson can explore longer mortgage terms to keep payments affordable, joint applications where a partner’s income helps, or even splitting borrowing across part repayment and part interest-only where lenders permit this. The goal is finding a structure that works for your circumstances.

Negative equity or low equity

Negative equity means your property is worth less than your outstanding mortgage, or that there’s insufficient equity to borrow more. In this situation, remortgaging to pay off the Help to Buy loan isn’t usually possible—you simply can’t borrow enough.

Instead, the focus shifts to a product transfer with your current lender (switching to a new deal without a fresh application) or waiting for property values to recover. Fox Davidson helps clients review their realistic options honestly. Sometimes the answer is to hold tight for now and revisit in 12 to 24 months.

Planning to move within a few years

If you’re thinking of moving soon, the trade-off between repaying now versus waiting until sale matters. Because the Help to Buy repayment is a percentage of your property’s future value, timing can materially affect how much you owe.

If you expect strong price growth, repaying now locks in today’s value. If prices are flat or uncertain, you might prefer to sell and settle everything at once. Fox Davidson can model both scenarios so you make an informed decision.

Intention to let the property in future

The Help to Buy scheme is designed for owner-occupiers. Letting your property while the equity loan is in place has strict rules and usually requires explicit permission, which is rarely granted long-term.

If you’re considering becoming a landlord, the typical exit strategy is to remortgage onto a standard residential product, repay the Help to Buy loan in full, and then later remortgage again to a buy-to-let product once you meet the criteria. Fox Davidson can advise on the sequencing and help you plan ahead.

How Fox Davidson Can Help with Your Help to Buy Remortgage

Fox Davidson is an independent, whole-of-market mortgage brokerage with extensive experience helping Help to Buy borrowers remortgage across England and London. We’ve guided clients through straightforward cases and complex ones alike.

We handle the entire process for you:

• Assessing your options – keep, staircase, or clear the equity loan
• Sourcing lenders – finding those happy with Help to Buy cases and offering competitive rates
• Coordinating with solicitors and Homes England – managing paperwork, consent applications, and timelines
• Handling your application – from submission through to completion

We work with employed, self-employed, and contractor clients. Even where income is complex or property values have moved significantly since purchase, we can often find a route forward.

Initial consultations are free and without obligation. We can usually give you an early indication within one conversation whether a full or partial Help to Buy repayment via remortgage looks achievable for your circumstances.

Ready to take the next step?

Call Fox Davidson, email us, or complete our online enquiry form. When you get in touch, it helps to have:

• Your original Help to Buy documents
• Your current mortgage statement
• An estimate of your property’s current value

Whether you want to staircase, fully repay, or simply explain your options, we’re here to help you find the right deal and take control of your home ownership.