The government's Help to Buy equity loan gave many buyers a leg up onto the property ladder. If you used the scheme, you have a mortgage and an equity loan from Homes England sitting on your property. When your initial mortgage deal ends, you cannot simply switch to any new lender without addressing that equity loan.
Not all lenders will accept a Help to Buy mortgage where the equity loan remains. We know which lenders are comfortable with this and handle the process with Homes England on your behalf.
The equity loan is interest free for the first five years. From year six, you pay interest at 1.75 percent, rising with inflation each year. This means the sooner you consider your options, the more choice you have. Some homeowners choose to repay the equity loan when they remortgage. Others remortgage the standard mortgage and leave the equity loan in place.
To repay the equity loan in full, you need a RICS valuation and to notify Homes England. If you have the equity to do this, it simplifies your finances and opens up the full range of mainstream lenders going forward.
If you want to leave the equity loan in place and just remortgage the main mortgage, the pool of lenders willing to accept this is smaller, but they do exist. We know which lenders are comfortable with Help to Buy remortgages.
Lenders who accept Help to Buy remortgages typically require the property to be revalued. The equity loan is calculated as a percentage of market value, not a fixed amount. If your property has risen in value, the equity loan balance will have increased too.
The process involves more communication with Homes England than a standard remortgage, which is why it helps to have an experienced broker managing it. We handle all of this for you, fee free.
We've broken down the full first-time buyer journey into focused guides. Explore each topic in detail — from choosing your mortgage type to understanding costs and government schemes.
How much deposit do you need? What can you borrow? And what other costs should you budget for beyond the down payment?
Fixed rate, variable, tracker, interest-only — understand how each mortgage type works and which is right for you as a first-time buyer.
Help to Buy, Shared Ownership, and step-by-step guidance on getting your Agreement in Principle and completing your mortgage application.
Self-employed? Adverse credit history? Find out how these factors affect your application and what solutions are available to you.
Why you need a conveyancer, which insurances are required vs. recommended, and how to protect your home and family from day one.
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