Repaying the equity loan
Last checked 28 September 2026
The new scheme's repayment rules haven't been published. This page explains how repaying worked under Help to Buy, the equity loan the government ran from 2013 to 2023, so you can see what it could look like. Everything below is Help to Buy's rules unless we say otherwise.
Rules not confirmed yet. Your First Home's repayment, staircasing and fee rules have not been announced. This page describes Help to Buy. The government says the full details will be set out at the Budget on 28 October 2026. We'll update this page when they are.
Independent guide. We are not the government, Homes England, a housebuilder or a lender, and this is not an official site for the scheme. Everything here is general information to help you understand it, not financial advice. The scheme's rules are due at the Budget on 28 October 2026.
You repay a share of the value, not the amount you borrowed
With Help to Buy you repaid your equity loan percentage of the home's market value at the time, and when you sold, of the market value or the agreed sale price if that was higher (GOV.UK). So a 20% loan meant repaying 20% of the value, whatever that turned out to be.
| Borrowed 20% of £230,000 (£46,000) | Home worth | Repay | Compared with £46,000 |
|---|---|---|---|
| Prices fall 10% | £207,000 | £41,400 | £4,600 less |
| Prices unchanged | £230,000 | £46,000 | Same |
| Prices rise 20% | £276,000 | £55,200 | £9,200 more |
| Prices rise 40% | £322,000 | £64,400 | £18,400 more |
Try your own numbers, with the mortgage balance too, in the calculator.
When the whole loan had to be repaid
Under Help to Buy you had to pay back the whole equity loan when any of these happened (GOV.UK):
- you sold the home;
- you reached the end of the equity loan term (usually 25 years);
- you paid off your repayment mortgage;
- you broke the loan's terms and conditions.
One report on the new scheme says its loan must be repaid on sale, within 25 years, or in line with the main mortgage (Global Banking & Finance Review). The government hasn't confirmed this.
Paying off part of it: staircasing
Help to Buy let you repay part of the loan early. The smallest repayment was 10% of your home's market value at the time, and repaying part reduced the interest you paid afterwards (GOV.UK). People call this "staircasing".
Example. You borrowed 20% on a £230,000 home. Five years later it's worth £253,939 (2% a year growth). Repaying 10% of the value costs £25,394 and leaves you owing the other 10%: whatever that is worth when you repay the rest.
Valuations
Each repayment needed a market valuation report from a chartered surveyor (GOV.UK). The HomeOwners Alliance's guide gives £200 as the valuation fee for staircasing (HomeOwners Alliance). Administration fees also applied when you changed the loan, for example on a partial repayment or a remortgage (GOV.UK).
Interest after the interest-free years
Help to Buy loans were interest-free for five years. From year 6 you paid interest at 1.75% a year of the amount you originally borrowed, spread over monthly payments, and the rate went up every April by CPI plus 2% (RPI plus 1% for loans taken out between 2013 and 2021). There was also a £1 monthly management fee. Interest and fees did not reduce what you owed (GOV.UK).
GOV.UK's own example: borrow £40,000 (20% of £200,000) and year 6 interest is £700, or £58.33 a month. On a £46,000 loan it would be about £67 a month. The new scheme's interest-free period and later fees haven't been announced.
Remortgaging
If you remortgaged with a Help to Buy loan, you paid administration fees for changing the equity loan (GOV.UK). Whether the new scheme's loan must be repaid, or can stay in place, when you remortgage isn't known yet.
What's still unknown for the new scheme
- How long it's interest-free, and what you pay after that.
- The loan term, and when it must be repaid.
- The minimum part-repayment, valuation rules and fees.
- Rules on remortgaging, letting and selling.
These are among the details the HomeOwners Alliance lists as still to come (HomeOwners Alliance).