Help to Buy repayment calculator
Help to Buy closed to new buyers — but if you bought with an equity loan between 2013 and 2023, the repayment question is live: the interest-free window ends after year 5, and repaying means paying a percentage of your home's current value, not what you borrowed. See both numbers for your own figures.
This is an information tool, not advice: projections use your inflation assumption and official scheme rules; your redemption statement from the scheme administrator is the definitive figure.
Worked example: £300,000 purchase, 20% loan, value now £330,000
Bought for £300,000 with a £60,000 (20%) equity loan five years ago; the home is now worth £330,000.
Repaying in full today costs £66,000 — £6,000 more than the £60,000 borrowed, because the loan is 20% of the current value. Doing nothing instead means interest starts in year 6 at 1.75% of the original loan — £1,050 in the first year (£88/month) — and the rate escalates every April thereafter, while the amount needed to repay keeps tracking your home's value.
Change the inputs below to model your own numbers.
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The three ways out of a Help to Buy loan
1. Remortgage to repay. Borrow more on your main mortgage to redeem the equity loan — swaps escalating scheme interest for mortgage interest, and needs enough equity and affordability headroom. Most owners do this at a fixed-rate renewal.
2. Staircase in part.Repay in slices of at least 10% of current market value. Halves the government's share of future growth (and the eventual interest exposure) without needing the full sum.
3. Repay on sale.The loan settles from sale proceeds at the scheme's percentage of the sale price. Simple — but if you sell after year 5 you'll have paid the interest in the meantime.
FAQ
Do I repay what I borrowed, or a percentage of today's value?
A percentage of today's value — the same percentage you borrowed. If your home rose in value, you repay more than you received; if it fell, less. That's the core design of the scheme, and the number one surprise on redemption statements.
When does Help to Buy interest start?
From the start of year 6, at 1.75% of the original loan amount, rising every April — RPI + 1% for pre-April-2021 loans, CPI + 2% for the 2021–2023 scheme. The interest never repays the loan; it's a fee on top.
Can I repay part of the loan?
Yes — in instalments of at least 10% of current market value, each requiring a RICS valuation and the scheme administrator's process. Repaying half a 20% loan halves both the redemption exposure and the interest.
Is remortgaging to repay the loan worth it?
It depends on your mortgage rate vs the escalating scheme rate, your equity, and how long you'll keep the home — run the interest schedule above against a remortgage quote. Our embedded affordability check shows whether the bigger loan fits your borrowing power.