You can remortgage a Help to Buy property, but the right route depends on what you want to do with the equity loan.

In most cases, you are choosing between four options:

• remortgage your main mortgage and leave the Help to Buy equity loan in place;
• remortgage to repay the Help to Buy equity loan in full;
• repay part of the equity loan, if the scheme rules and process allow it;
• sell the property and clear the mortgage and equity loan on completion.

The important point is that the Help to Buy equity loan is not normally repaid as the original cash amount you borrowed. It is usually repaid as a percentage of the property’s current market value, so the amount due can rise or fall with the value of your home.

This guide explains how to remortgage your Help to Buy loan, what lenders usually check, what can slow the process down, and what to prepare before you apply.

This is general guidance only and is not personal mortgage, legal or tax advice. Your options depend on your circumstances, lender criteria, the property, current scheme administration requirements and the evidence available at the time.

What does remortgaging a Help to Buy loan mean in practice?

Remortgaging a Help to Buy property means changing the mortgage secured on your home while the Help to Buy: Equity Loan is either left in place or repaid as part of the transaction.

The mortgage and the equity loan are separate. Your main mortgage is with your mortgage lender. The equity loan is administered under the Help to Buy process and is secured against the property. That is why a Help to Buy remortgage can involve more steps than a standard remortgage.

In practice, you may need:

• your current mortgage balance and redemption figure;
• details of the Help to Buy equity loan percentage;
• a property valuation acceptable for the Help to Buy process;
• a new mortgage offer, if you are changing lender or borrowing more;
• solicitor involvement;
• consent or administration through the Help to Buy process;
• enough time for valuation, underwriting and legal work.

The main decision is not simply “which mortgage rate is lowest?”. It is whether the route you want fits your affordability, loan-to-value, property and timing.

Your main Help to Buy remortgage options

A broker can help compare these routes, but the final answer depends on the numbers and lender criteria, not on the scheme name alone.

Can you remortgage to pay off Help to Buy?

Yes, some borrowers remortgage to repay their Help to Buy equity loan. This usually means increasing the main mortgage so it covers:

• the existing mortgage balance;
• the Help to Buy equity loan repayment amount;
• any permitted fees or costs you choose to add to the mortgage;
• any early repayment charge on your current mortgage, if relevant.

The lender will assess whether the larger mortgage is affordable. That assessment can include your income, commitments, household spending, dependants, credit history, mortgage term, property type and the lender’s own stress testing.

A common issue is that the numbers look comfortable on paper but fail on affordability. For example, a borrower may have enough equity in the property, but the proposed new mortgage payment may not fit the lender’s affordability model.

You should also check whether your chosen lender is comfortable with the purpose of the extra borrowing. Some lenders have specific criteria for Help to Buy equity loan repayment.

A common trap: budgeting for the original Help to Buy amount

Imagine a homeowner who bought a new-build flat with a 20% Help to Buy equity loan and is now approaching the end of the five-year interest-free period. They remember the original equity loan being around £48,000, so they start looking at remortgage options assuming they only need to borrow roughly that amount on top of their existing mortgage.

The problem is that the property is now estimated to be worth more than when they bought it. If the equity loan repayment is based on 20% of the current market value, the amount needed to clear it could be materially higher than the original loan. That extra borrowing may push the new mortgage into a different loan-to-value band and may also fail affordability if income, childcare costs or credit commitments have changed since purchase.

There is a second timing issue. If they wait until a few weeks before their mortgage deal ends, there may not be enough time to arrange the correct Help to Buy valuation, obtain a suitable mortgage offer, instruct a solicitor and complete the redemption process without pressure.

Practical checks before committing to this route:

• estimate the equity loan repayment using the current property value, not the original loan amount;
• check whether the larger mortgage fits lender affordability, not just loan-to-value;
• confirm whether the lender accepts borrowing for Help to Buy repayment;
• allow time for valuation, solicitor work and scheme administration;
• compare full repayment with keeping the equity loan if affordability is tight.

The lesson is that repaying Help to Buy can be sensible, but the decision should be built around today’s valuation and affordability, not the figures from when the property was first bought.

How is the Help to Buy equity loan repayment worked out?

The Help to Buy equity loan is normally linked to a percentage of your property’s current market value, not just the amount originally borrowed.

For example, if the equity loan was 20% of the property when you bought it, repayment is usually based on 20% of the property’s current value, subject to the scheme rules and valuation process.

That means:

• if the property value has increased, the repayment amount may be higher than the original equity loan;
• if the property value has fallen, the repayment calculation may be lower, although lender loan-to-value and sale proceeds can still create issues;
• you should not rely only on a rough online estimate when planning a remortgage.

GOV.UK explains the Help to Buy: Equity Loan repayment process and the need to repay the equity loan when required under the scheme terms. You can read the official guidance here: Help to Buy: Equity Loan.

What happens after 5 years of Help to Buy?

For many Help to Buy equity loans, the first five years were interest-free. After that period, interest becomes payable on the equity loan, alongside any management fee or administration costs required under the scheme.

That does not automatically mean you must remortgage at year five. It does mean you should review your options before the extra cost starts or increases.

Your broad choices may include:

• keeping the equity loan and paying the required interest;
• switching your main mortgage rate while leaving the equity loan in place;
• remortgaging to repay the equity loan;
• repaying part of the equity loan, where allowed;
• selling the property.

The right route depends on affordability and your longer-term plans. Repaying the equity loan can remove future equity loan interest and percentage-linked repayment risk, but it may also increase your mortgage balance and monthly mortgage payment.

Do not assume repayment is automatically better. Compare the total mortgage cost, fees, monthly affordability and flexibility before deciding.

How much does it cost to remortgage Help to Buy?

The cost depends on your route, lender, solicitor, valuation and whether you are repaying the equity loan.

Costs to check may include:

You can check official administration fee guidance here: Help to Buy: Equity Loan administration fees.

Fees and requirements can change, so check current figures before committing to a route.

What should you check before deciding?

Before looking at mortgage products, gather the numbers. A Help to Buy remortgage can go wrong if you start with the rate before checking the structure.

Use this checklist:

• What is your current mortgage balance?
• When does your current mortgage deal end?
• Is there an early repayment charge?
• What percentage is your Help to Buy equity loan?
• What is a realistic current property value?
• Do you want to keep, part-repay or fully repay the equity loan?
• How much extra borrowing would be needed?
• Would the new mortgage still be affordable if rates changed?
• Is your income straightforward or variable?
• Has your credit profile changed since you bought the property?
• Is the property leasehold, a flat, new-build or affected by cladding or building safety checks?
• How quickly do you need to complete?

James Blackler at The Mortgage Blog usually recommends starting with the numbers before comparing products: current mortgage balance, estimated property value, equity loan percentage, income, commitments, credit profile and deadline. Without those, it is easy to choose a route that looks sensible but fails on affordability or loan-to-value.

How do lenders assess a Help to Buy remortgage?

Lenders do not all use the same criteria, but these are the main areas they usually consider.

Affordability

Affordability is often the first major test, especially if you want to borrow more to repay the equity loan.

A lender may assess:

• employed, self-employed or contractor income;
• overtime, bonus or commission income;
• credit commitments;
• childcare or maintenance costs;
• dependants;
• household expenditure;
• mortgage term;
• future payment resilience.

public guidance explains that mortgage borrowers should think about affordability and wider household budgeting, not only the headline rate. You can read more here: Choosing a mortgage — shop around or get advice.

Loan-to-value

Loan-to-value, or LTV, compares the mortgage amount with the property value.

For example, if your property is worth £300,000 and the new mortgage would be £240,000, the LTV is 80%.

A Help to Buy repayment can push the mortgage to a higher LTV because the new loan may need to cover both the old mortgage and the equity loan repayment. Higher LTVs can reduce lender choice or affect pricing.

Credit history

Missed payments, defaults, county court judgments, high unsecured debt or recent credit applications can make the case harder. Some lenders may still consider certain credit issues, but the details matter.

If your credit history is not clean, it is usually sensible to check lender fit before making a full application. You may also find this guide useful: improving your credit score.

Property type

The property is the lender’s security, so its type and condition matter.

Extra checks may be needed for:

• flats;
• leasehold properties;
• properties with cladding or building safety concerns;
• unusual construction;
• new-build homes;
• properties with restrictions or complex title issues.

This can affect the mortgage even where your income is strong.

Product transfer or full remortgage?

A product transfer means staying with your existing lender and choosing a new rate. A full remortgage means moving to a new lender.

A product transfer can be suitable if you simply want a new rate and are not changing the Help to Buy position. It may not be enough if you want to raise funds to repay the equity loan.

Equally, moving lender is not automatically better. The right choice depends on the total cost, criteria, affordability and timing.

How to settle a Help to Buy equity loan

The exact process can vary depending on the scheme administration requirements at the time, but a full settlement usually involves these stages:

1. Check your current mortgage balance and whether any early repayment charge applies.
2. Confirm the Help to Buy equity loan percentage and current scheme requirements.
3. Arrange the required valuation evidence through the correct process.
4. Obtain a mortgage agreement or offer if you are using a remortgage to repay the loan.
5. Instruct a solicitor to handle the legal and redemption work.
6. Complete the remortgage or sale and repay the equity loan through the required process.

GOV.UK has specific guidance on remortgaging a Help to Buy home and borrowing more money: How to remortgage your Help to Buy home and borrow more money.

Because the valuation and legal work can take time, do not leave this until the final weeks of your mortgage deal if you can avoid it.

Documents to prepare before asking for advice

You do not need every document before an initial conversation, but the more accurate the information, the more useful the guidance is likely to be.

Prepare:

• your latest mortgage statement;
• current mortgage rate and deal end date;
• early repayment charge details, if any;
• Help to Buy equity loan paperwork;
• the equity loan percentage;
• an estimated current property value;
• payslips or income evidence;
• latest accounts or tax calculations if self-employed;
• bank statements;
• details of loans, credit cards and other commitments;
• credit report if you know there have been issues;
• lease details if the property is leasehold;
• service charge and ground rent details, if relevant;
• details of any building safety, cladding or management company issues;
• your target timescale.

If you are self-employed, make sure the income evidence matches what lenders are likely to request. GOV.UK’s Self Assessment information may be useful if you need to understand tax year documents: Self Assessment tax returns.

What can make remortgaging a Help to Buy loan harder?

A Help to Buy remortgage can become harder where:

• you need a much larger mortgage to repay the equity loan;
• the property value is lower than expected;
• your income has reduced since you bought;
• you have changed job recently;
• you are self-employed with fluctuating profits;
• you have new credit commitments;
• there are missed payments or other credit issues;
• the property is affected by leasehold, cladding or valuation concerns;
• your current mortgage deal ends very soon;
• the early repayment charge is high;
• you have not allowed enough time for solicitor and Help to Buy administration.

The biggest practical mistake is applying before checking whether the lender accepts the route you need. A lender that is suitable for a standard remortgage may not be suitable for a Help to Buy repayment case.

Common mistakes to avoid

Assuming you only repay the original equity loan amount

This can lead to a major shortfall. The repayment is usually based on the relevant percentage of the property’s current value, not simply the original cash sum.

Looking only at the interest rate

The lowest rate is not always the lowest overall cost. Check arrangement fees, legal costs, valuation costs, administration fees, early repayment charges and whether fees are being added to the mortgage.

Leaving it too late

Help to Buy remortgages can involve a lender, solicitor, valuer and scheme administrator. Starting late can reduce your options and create pressure to accept a route that is not ideal.

Assuming your current lender is your only option

Your current lender may be worth considering, but it is not always the only route. On the other hand, a new lender is not automatically better. Compare both where possible.

Adding all costs to the mortgage without considering the long-term effect

Adding fees to the mortgage can reduce upfront costs, but it can increase the amount you pay interest on. This may be acceptable in some cases, but it should be a conscious decision.

Forgetting the solicitor’s role

The solicitor may need to deal with the existing lender, new lender, Help to Buy administrator and redemption process. This is especially important if the equity loan is being repaid.

What could remortgaging a Help to Buy loan look like in practice?

These examples are simplified and are for illustration only. They are not mortgage advice.

Example 1: Remortgaging and keeping the equity loan

This may be more straightforward than repaying the equity loan because the mortgage balance is not increasing significantly. However, lender criteria still matter.

Example 2: Remortgaging to repay the equity loan

Here, the borrower needs a larger mortgage. The key issue is whether the lender is comfortable with the borrowing amount and whether the monthly payment is affordable.

Example 3: Property value has increased

This is where borrowers can be caught out. A higher property value can mean a higher Help to Buy repayment figure, which may require more borrowing.

Example 4: Affordability is tight

In this case, the LTV may be possible with some lenders, but affordability could still fail. Checking affordability before paying for valuations or legal work can avoid wasted time.

When should you speak to a broker?

It is worth speaking to a broker if:

• you want to repay the Help to Buy equity loan;
• you need to borrow more;
• you are close to your current deal end date;
• you are unsure whether to choose a product transfer or full remortgage;
• your income is self-employed, variable or complex;
• your credit history is not perfect;
• your property is leasehold, a flat or has building safety issues;
• you are worried the property value may not be high enough;
• you want to compare the total cost of different routes.

A broker can help you understand which lenders may be more likely to consider the case before you apply. This does not guarantee acceptance, but it can help you avoid routes that are unlikely to fit.

At The Mortgage Blog, we can help you work through the figures, compare realistic options and decide whether a remortgage, product transfer, further advance or another route is more appropriate.

If you want us to look at your circumstances, you can speak to a mortgage adviser or make a finance enquiry.

What if you are struggling with payments?

If you are already in mortgage arrears or worried you may miss payments, contact your lender as early as possible. Do not wait until the problem becomes urgent.

public guidance has guidance on help if you cannot pay your mortgage: Government help if you can’t pay your mortgage.

The FCA also provides consumer information and protections for financial services customers: FCA consumers.

If you are facing possession action or serious debt pressure, you may need debt or legal support as well as mortgage advice.

What should you read next?

You may also find these guides useful:

• how much mortgage can I afford
• how do mortgages work
• new build mortgages
• mortgage deals for first time buyers
• joint borrower sole proprietor mortgage
• does student loan affect mortgage
• UK swap rates and mortgages
• how to get a mortgage in 5 essential steps
• Nationwide Helping Hand mortgage

FAQs

Can I remortgage with Help to Buy still in place?

Yes, some borrowers can remortgage while leaving the Help to Buy equity loan in place. The lender must be comfortable with the equity loan remaining and the rest of the case must meet its criteria.

Can I remortgage to pay off my Help to Buy loan?

Yes, this is possible in some cases. The new mortgage must be large enough to repay the existing mortgage and the Help to Buy equity loan, and the lender must consider the borrowing affordable.

Is the Help to Buy equity loan repaid at the original amount?

Usually no. It is normally repaid as the relevant percentage of the property’s current market value, subject to the scheme rules and valuation process.

Do I need a valuation to repay Help to Buy?

A valuation is usually part of the repayment process. You should check the current Help to Buy requirements before arranging one, because the valuation may need to meet specific rules.

Do I need a solicitor?

Usually, yes. A solicitor is commonly needed to deal with the remortgage, lender requirements, title work and Help to Buy redemption process.

Should I use my existing lender or a new lender?

It depends. Your existing lender may offer a product transfer or further advance, which can be simpler in some cases. A new lender may offer wider options, but will require a new assessment. Compare total cost, criteria and the Help to Buy outcome you need.

What if I cannot afford to repay the equity loan?

You may still be able to keep the equity loan and switch your main mortgage rate, depending on lender criteria and scheme requirements. You should review the ongoing equity loan interest and your long-term plan.

How early should I start?

Starting several months before your current deal ends is sensible, especially if you want to repay the equity loan. Valuation, lender assessment, solicitor work and administration can take time.