Help to Buy Equity Loan Calculator

No. The Help to Buy equity loan scheme closed to new applications on 31 October 2022, with completions by 31 March 2023. However, thousands of existing borrowers still have active equity loans that they will need to manage and eventually repay. This calculator helps existing borrowers understand their current position.

The equity loan is fee-free for the first five years. In year 6, you start paying an annual management fee of 1.75% of the loan value. After year 6, the fee increases annually by the Retail Price Index (RPI) plus 1%. These fees are in addition to your mortgage payments.

The repayment amount is based on the current market value of your property, not the original purchase price. You repay the same percentage that you borrowed. So if you borrowed 20% and your property is now worth £300,000, full repayment would cost £60,000 regardless of the original price.

Yes. You can make partial repayments (called staircasing) in chunks of at least 10% of the current property value. Each partial repayment requires a valuation from a RICS-qualified surveyor. You will also need your mortgage lender's permission and may need to remortgage.

If your property has decreased in value, the government shares in the loss proportionally. Your repayment amount is based on the current market value, not the original price. So if your property fell from £250,000 to £200,000 with a 20% loan, you would repay £40,000 instead of £50,000.

Yes. You must obtain a valuation from a RICS-qualified surveyor approved by the Help to Buy agent. The valuation is valid for three months. The cost of the valuation (typically £250-£500) is paid by you. This valuation determines the repayment amount.

Yes, you can sell at any time. When you sell, the equity loan is repaid from the sale proceeds as a percentage of the sale price. If you borrowed 20%, 20% of the sale price goes to repay the loan. The remaining proceeds are yours (minus your mortgage balance).

The 20% equity loan was available across England, while the 40% loan was only available in London due to higher property prices. London borrowers could get up to 40% of the property value as an equity loan, meaning they needed as little as a 5% deposit and 55% mortgage.

Yes, you can remortgage, but your new lender must agree to the Help to Buy equity loan remaining as a second charge on the property. Not all lenders accept Help to Buy properties, which may limit your options. You do not need permission from the Help to Buy agent to remortgage.

If you are struggling to pay the annual fees, contact your Help to Buy agent as soon as possible. They may be able to discuss options with you. Unpaid fees accrue and become a debt that must eventually be settled, typically when the property is sold or the loan is repaid.