Calculate repayment amount and ongoing management fees
Help to Buy Equity Loan Calculator
Note: The Help to Buy equity loan scheme closed to new applications in October 2022. This calculator is for existing borrowers repaying their equity loan.
Help to Buy Equity Loan — Key Facts
The Help to Buy equity loan scheme (now closed to new applicants) gave buyers a government loan of 20% (40% in London) of a new-build property's value. The loan is interest-free for 5 years, then fees apply from Year 6.
Fee Schedule
Years 1–5: No fees (interest-free)
Year 6: 1.75% of original loan amount per year
Years 7+: Previous year's fee × (RPI+1%)
The loan is repaid as a percentage of the property value at repayment (not the original loan amount), so you repay more if the property has increased in value.
Frequently Asked Questions
Is Help to Buy still available?
No. Help to Buy: Equity Loan England closed to new applications in October 2022. The Wales scheme also closed. Existing borrowers continue under their loan terms until they repay.
When do Help to Buy fees start?
Management fees start in Year 6 at 1.75% of the original equity loan amount per year. They increase annually by RPI+1%. There are no fees in Years 1–5.
How do I repay my Help to Buy equity loan?
Contact Homes England (the government agent) to obtain a repayment figure. The amount is based on the current market value of your home multiplied by the loan percentage (20% or 40%). You need an RICS valuation.
What happens to my equity loan if I sell?
On sale, the loan percentage is repaid from the proceeds. If you sell for more than you paid, you repay more than you borrowed (as a percentage of the higher value). If you sell for less, you repay less.
Can I partially repay my Help to Buy loan?
Yes — you can make partial repayments of at least 10% of the property's current market value. Partial repayment reduces your outstanding loan percentage and future fee calculations.
How is my HMRC tax affected by Help to Buy?
There are no special income tax implications. Any capital gain on sale of your main residence is typically exempt from CGT (Private Residence Relief). The equity loan is a debt, not income.
What is an EWS1 certificate and how does it affect Help to Buy?
EWS1 certificates assess cladding safety in flats. Properties with EWS1 issues can be difficult to remortgage or sell. This affects Help to Buy borrowers in flats as they may be unable to staircase or repay their loan.
Can I remortgage if I have a Help to Buy equity loan?
Yes. When remortgaging, lenders must be made aware of the equity loan (it ranks as a second charge). Most mainstream lenders accept this. You must inform Homes England when remortgaging.
Does Help to Buy affect my stamp duty?
No special treatment. SDLT applies to the full purchase price (including the equity loan portion) at purchase. First-time buyers received first-time buyer SDLT relief at purchase.
What is the target redemption period?
There is no fixed repayment deadline, but the management fees increase each year, making it financially sensible to repay as early as possible. The loan must be repaid by the 25-year term of the loan or when you sell.
Can I let out my Help to Buy property?
No. Help to Buy properties must be the owner's sole residence. You cannot let out a property purchased with Help to Buy without repaying the equity loan first.
What happens if I default on my Help to Buy loan?
Homes England can seek repayment and ultimately register a charge against your property. Unlike a mortgage, there are no monthly capital repayments — but the management fees must be paid or you risk enforcement action.