Remortgaging My Help To Buy Property

To remortgage a Help to Buy property, you must decide whether to repay the equity loan in full, in part, or not at all. The process involves getting an independent property valuation, hiring a conveyancer, and getting permission from Homes England if you are changing lenders or borrowing more. 

Your repayment options

After the initial interest-free period on your Help to Buy equity loan ends (usually 5 years), your monthly payments will increase. You have three options for how to manage the loan: 

• Remortgage to pay off the full loan: You increase your mortgage to cover the value of the outstanding equity loan, based on the property's current market value. The benefit is that you will no longer have to pay interest on the equity loan, and you own 100% of your property's future growth.
• Staircase (part-pay) the loan: You use your savings or a larger mortgage to repay at least 10% of the equity loan, based on your property's current value. Be aware that you will incur administration fees for each part-payment you make.
• Remortgage and keep the full loan: You can remortgage to a new deal while keeping the equity loan. However, fewer lenders offer this option, and you will begin paying interest on the government's portion of the property.

The remortgaging process

1. Get financial advice. Speak to an independent mortgage broker. They can help you compare deals, determine the best option for your situation, and navigate the complex Help to Buy rules.
2. Get a property valuation. If you plan to repay all or part of your equity loan, you will need a market valuation from a surveyor who is a member of the Royal Institution of Chartered Surveyors (RICS). The amount you owe on the equity loan is a percentage of your home's current market value, not the original purchase price.
3. Appoint a conveyancer. You will need to hire a solicitor or conveyancer to handle the legal work. They will arrange for the necessary documents, such as the Deed of Postponement.
4. Settle any outstanding payments. Before you can proceed, you must be up-to-date with your equity loan payments. You must clear any arrears or arrange a payment plan with Homes England.