What is the Help to Buy equity loan?

The Help to Buy equity loan was a government scheme that lent first-time buyers up to 20% of a new-build property's price (40% in London), interest-free for the first 5 years. The scheme closed to new applicants on 31 October 2022. Existing borrowers continue to be managed by Homes England.

There are no fees for the first 5 years. From year 6, a monthly management fee is charged at 1.75% of the original loan amount per year. This fee increases each April by RPI (Retail Price Index) plus 1%. You can check your current fee in your annual statement or through the Target HCA portal.

How much will I repay when I sell or remortgage?

The equity loan is repaid as a percentage of the property's current market value, not the original loan amount. For example, if you borrowed 20% of £250,000 (£50,000) and the property is now worth £350,000, your repayment is 20% of £350,000 = £70,000. This means house price growth increases the amount you owe.

Can I repay part of the loan early?

Yes, you can make a partial repayment (called a "staircasing" payment) at any time in multiples of 10% of the property's current value. There's a minimum repayment of 10%. Each partial repayment reduces the loan percentage and therefore your ongoing fees and future repayment amount.

How do I get my property valued for repayment?

You must obtain a RICS (Royal Institution of Chartered Surveyors) valuation from a chartered surveyor. This valuation is used by Homes England to calculate the repayment amount. You cannot use an online estimate or estate agent valuation for official purposes.

Mortgage & Property

Help to Buy Equity Loan Calculator

Calculate the management fees and repayment cost of your Help to Buy equity loan year by year.

For existing borrowers only. The Help to Buy equity loan scheme closed to new applicants on 31 October 2022. This calculator is for those who already hold an equity loan and want to understand their ongoing fees and repayment costs.

Looking to buy your first home?

The Lifetime ISA (LISA) is the main government-backed scheme still open to first-time buyers. You can save up to £4,000 a year and receive a 25% bonus, up to £1,000 per year, towards your first home or retirement.

Lifetime ISA Calculator Help to Buy ISA vs Lifetime ISA Guide First-Time Buyer's Complete Guide Updated April 2026

Your details

Original purchase price

The price you paid when you bought the property

Equity loan percentage

20% outside London, up to 40% in London

Initial loan: £50,000

Annual property growth

Affects the repayment amount (loan is repaid as % of sale price)

Annual fee increase (RPI + 1%)

The management fee increases by RPI + 1% each April from year 7

Years until repayment

When you plan to sell or remortgage

Your results

Equity Loan Repayment After 10 Years

Loan repayment in year 10

£67,196

Total fees paid

£4,692

Initial loan: £50,000
Property value: £335,979
20% repayable: £67,196

Breakdown

Initial loan (at purchase): £50,000
Loan growth (due to house price rises): +£17,196
Total fees paid (years 6–10): £4,692
Total repayment in year 10: £67,196

Important: Due to property price growth, your repayment (£67,196) is £17,196 more than your original loan of £50,000. The equity loan is always repaid as a percentage of the current sale price, not the original amount.

Year-by-year schedule

Year	Property value	Equity loan	Annual fee	Monthly fee
1 fee-free	£257,500	£51,500	N/A	N/A
2 fee-free	£265,225	£53,045	N/A	N/A
3 fee-free	£273,182	£54,636	N/A	N/A
4 fee-free	£281,377	£56,275	N/A	N/A
5 fee-free	£289,819	£57,964	N/A	N/A
6 fees begin	£298,513	£59,703	£875	£72.92
7	£307,468	£61,494	£906	£75.47
8	£316,693	£63,339	£937	£78.11

Related calculators

Mortgage Calculator Mortgage Overpayment Stamp Duty Calculator Lifetime ISA Calculator

Frequently asked questions

Sources & methodology

Built and maintained by Tim, a personal finance enthusiast (not a financial adviser). Last reviewed April 2026. Rates and thresholds come from official UK government publications.

GOV.UK: Individual Savings Accounts · ISA allowances, types and eligibility rules
HMRC: Lifetime ISA · LISA bonus, withdrawal rules and limits
HMRC: Stamp Duty Land Tax · Rates, thresholds and first-time buyer relief
GOV.UK: Capital Gains Tax on property · Property CGT rates and exemptions

Figures are estimates only. This is not financial or tax advice. For help with your specific situation, speak to HMRC or a qualified adviser.