Repaying your Help to Buy loan involves several steps. Here’s a guide to help you through the process.
1. Start Early: 6 Months Before Your Fixed Rate Ends
Begin your application to a mortgage lender up to six months before your current fixed rate expires. As part of this process, the lender will value your property. At the same time, contact the Help to Buy agent for your area to receive the necessary paperwork. You’ll need to instruct a conveyancer to handle the legal side of things at this stage.
2. Three Months Before Fixed Rate Expiry
When you’re within three months of your fixed rate expiry, arrange for a separate Royal Institution of Chartered Surveyors (RICS) surveyor to carry out a valuation specifically for the Help to Buy portion. Valuations can differ, so you may need to revisit your mortgage application if they do.
3. Submit Your Valuation and Pay Fees
Once you have the RICS valuation, send it with your paperwork to the Help to Buy agent and pay the processing fee. After review, you’ll receive an authority to proceed (usually sent to your conveyancer), which allows you to redeem the Help to Buy loan for the specified amount. This authority is typically valid for three months.
Why Start Early?
The process involves multiple steps and timelines, and completing it early can prevent issues when moving to a new deal at the end of your current rate. If not, you may end up on your lender’s standard variable rate, which could be costly.
Funding Options
You can use savings or add the required amount to your mortgage balance through a capital raise.
Do You Have to Repay?
You don’t have to repay the Help to Buy loan immediately. You can remortgage with the loan still in place, but after five years, interest will be charged on the Help to Buy portion until it’s repaid. House prices typically rise over time, making it challenging to calculate the full cost of delaying, but valuations could go down as well.
What if You Sell?
If you sell, the Help to Buy repayment is based on the higher of the sale price or the RICS valuation. If your property sells for more than the RICS valuation, you’ll repay 20% of the higher figure. If it sells for less, repayment is based on the RICS valuation.
Typical Costs
- Legal fees: Between £700-£800 (varies by firm; some lenders may contribute)
- Help to Buy admin fee: Approximately £200
- RICS surveyor fee: Approximately £300
Valuation Differences
You may receive a higher valuation from your mortgage lender than the Help to Buy valuation, which can mean a more competitive interest rate. For instance, if the lender values your property at £280,000 but the Help to Buy valuation is £265,000, you might qualify for better rates due to higher equity.
Timing and Advice
Costs can vary and may increase over time. Deciding when to repay depends on your financial situation, so it’s essential to seek financial advice. This guide is accurate as of 12/11/2025 but is not financial advice.
Important: Your home may be repossessed if you do not keep up with payments.
The information contained within was correct at the time of publication but is subject to change.
