Calculate your Help to Buy equity loan repayment amount and ongoing interest charges. Interest-free for 5 years, then 1.75% rising with CPI+1% from year 6.
Your Help to Buy Loan Details
Repayment Amount
Current Annual Interest
Loan Summary
5-Year Interest Projection
How Help to Buy Interest Works
The Help to Buy equity loan was interest-free for the first 5 years. From year 6, Homes England charges an annual interest fee. The rate starts at 1.75% of the outstanding loan amount and increases each year in April by the CPI inflation rate plus 1 percentage point.
Year
Interest Rate
Monthly Admin Fee
Years 1–5
0% (interest-free)
£1/month
Year 6
1.75%
£1/month
Year 7+
Previous year rate × (1 + (CPI + 1%)/100)
£1/month
The interest fee is charged on the original loan amount (i.e., the property value at purchase × loan percentage). Repayment is based on the current market value.
Frequently Asked Questions
How does the Help to Buy equity loan work?
The government lent you 20% of the property value (40% in London), interest-free for 5 years. From year 6, interest starts at 1.75% rising by CPI+1% annually. You repay when you sell, remortgage, or pay it off voluntarily — always as a percentage of the current market value.
When did Help to Buy end?
The Help to Buy 2021–2023 scheme closed to new applications on 31 October 2022, with completions required by 31 March 2023. No new applications have been accepted since.
How much do I repay on a Help to Buy equity loan?
You always repay the same percentage of the current property value. For example, if you borrowed 20% and your property is now worth £300,000, you repay 20% × £300,000 = £60,000 — regardless of the original loan amount.
What is the Help to Buy interest rate from year 6?
From year 6, the interest fee is 1.75% of the original loan amount. From year 7 onwards, this increases each April by CPI+1%. For example, with 3% CPI: 1.75% × 1.04 = 1.82% in year 7.
Is there a monthly management fee for Help to Buy?
Yes — a £1 per month administration fee is payable throughout the life of the loan, including during the interest-free years 1–5. It is a flat fee that does not change.
Can I repay part of my Help to Buy loan?
Yes — you can make partial staircase repayments of at least 10% of the current property value. This reduces the government's equity share and your future interest charges.
What happens to my Help to Buy loan when I sell?
When you sell, the loan is repaid from the sale proceeds as the same percentage of the sale price. If the property has risen in value, you repay more in pound terms; if it has fallen, you repay less.
Can I remortgage with a Help to Buy equity loan?
Yes — you can remortgage your repayment mortgage without affecting the equity loan. Your new lender must agree to the existing equity loan charge. Most major lenders accept this.
What does it cost to redeem my Help to Buy loan?
To redeem: instruct a RICS surveyor to value the property (£150–£350), pay a Homes England redemption admin fee, and pay solicitor fees for the redemption (typically £500–£800).
What if my property value has fallen?
If the property value has fallen, you repay less in pound terms — the government shares in the loss as well as any gain. Repayment is always the current market value × the original loan percentage.
How do I stop paying Help to Buy interest?
The only ways to stop paying interest are to repay the full equity loan, sell the property, or staircase repayments to 100% ownership. There is no way to freeze interest without repaying the loan.
Is Help to Buy interest tax deductible?
No — Help to Buy interest fees are not tax deductible for owner-occupiers. If renting out the property (with Homes England consent), seek professional tax advice.