Help to Buy Remortgages

Looking to remortgage your Help to Buy property? An expert remortgage broker can help guide you on everything you need to know

Which Help to Buy scheme did you use when you purchased the property?

Home Remortgages Help To Buy Remortgages
Pete Mugleston

Author: Pete Mugleston

Mortgage Advisor, MD

Nathan Porter

Reviewer: Nathan Porter

Independent Mortgage Advisor

Updated: March 15, 2024

How we reviewed this article:

Our experts continuously monitor changes in the financial space and work closely with qualified mortgage advisors for factual verification.

March 15, 2024

If you bought a property using the government’s Help to Buy scheme and your fixed term or tracker deal is about to come to an end, you can remortgage.

Before you make any decisions it’s important to speak with a specialist Help to Buy mortgage broker so you can make a more informed choice.

Read on for more information or jump to the section that’s relevant to you via the links below…

Can you remortgage if you’ve used a Help to Buy loan to purchase your home?

Yes, you can still remortgage onto another deal. In fact, it’s quite important whether that’s with your current lender or a new one. If you don’t, you’ll be moved onto your lender’s standard variable rate (SVR), which will most likely be more expensive.

Much like with a standard remortgage, the loan to value ratio (LTV) – that’s the amount you’re borrowing relative to the property’s value – will be a key factor in the choice and quality of remortgage products lenders will offer you.

However, remortgaging with a Help to Buy loan is a bit more complicated than a standard remortgage as you have the 20% government loan, which you need to pay back when you sell the property, to take into consideration.

Do you need permission to remortgage your Help to Buy home?

If you’re remortgaging to another lender, you’ll need to make a Deed of Postponement request to the Help to Buy scheme administrator. Your solicitor/conveyancer will take care of this for you. Be advised that some solicitors may charge extra for this.

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How to get a Help to Buy remortgage

Your first step should be to find a specialist mortgage broker with experience in this area as this will boost your chances of getting approved at the best terms available.

Using our free broker-matching service you can speak straight away to the right broker by simply making an enquiry online.

They’ll be able to help with:

  • Gathering all the necessary paperwork, documentary evidence and approvals required for this specific type of remortgage
  • Downloading and optimising your credit reports to remove any inaccuracies or outdated information that could hinder your application
  • Finding the right lender who offers remortgages for the Help to Buy scheme and securing the best deal for you

Do you need to pay back the equity loan to remortgage?

No, it’s not essential. However, depending on your circumstances, it might be worth looking at. That’s because a significant number of lenders won’t consider lending to you if it will remain.

Also, remember you have to start paying interest on the loan after five years, which lenders will take into account during their affordability assessment. So, although not obligatory, if you can pay back the loan, you’ll have a wider choice of deals to pick from when remortgaging.

Can you remortgage to pay off the equity loan?

Yes, you can pay back the loan – or part of it – at any time and if you don’t have a cash lump sum or significant savings, you can release equity when you remortgage and use the additional money.

You may want to pay off the loan early so you don’t have to worry about repaying it when you come to sell the property or to avoid having to start paying interest on it (loans are interest-free for the first five years only).

Just bear in mind, if you remortgage to pay back the loan you’ll be borrowing more money so you need to make sure you’ll be able to afford the higher monthly repayments. A broker can help you work this out.

Another option is using the equity you’ve released to pay back part of the loan. This is called staircasing. The minimum you can repay at one time is 10% of the property value.

How much equity you can release

Some lenders may consider a remortgage up to 90% LTV, and a handful up to 95%, to release capital for paying off the equity loan.

Try our calculator below to get an idea of what your new mortgage payments will look like after you’ve released capital to settle your Help to Buy debt.

Help to Buy Remortgage Calculator

Our remortgage calculator can tell you what your new loan-to-value (LTV) ratio and repayments will be after you've refinanced to release equity to pay off your loan

Estimate if exact value is unknown
Estimate if exact value is unknown
Amount must be less than property value
This should be the remaining balance on your equity loan
What will the new term length be after you've refinanced?
Enter the mortgage rate, 5.5% is a typical rate currently but this can vary

New LTV:

After you have remortgaged your new LTV ratio will be and your new mortgage payments will be as indicated below…

New Monthly Repayments:

Get started with an expert broker to find out how much they can help you save on your remortgage.

You’ll need a Royal Institute of Chartered Surveyors’ valuation report to figure out how much you need to pay back. And remember, you repay the loan based on the property’s current value, not what you originally paid for it. The firm that manages the Help to Buy equity loans (Target) may also charge an admin fee of circa. £120.

What happens if you can’t repay the loan?

You can still remortgage with your existing lender or a new lender. There may just be fewer deals available to you, and rates may be higher.

A product switch with your existing lender may be the best route as you probably won’t have to go through their affordability checks again. A broker with specialist knowledge of Help to Buy remortgages is best placed to advise you on this.

Which lenders offer Help to Buy remortgages?

A handful of mainstream lenders offer these products including Natwest, Barclays and Halifax.

However, they won’t necessarily offer the most competitive rates. You may be better off using a specialist lender who’ll be able to offer a wider selection of rates and deals. Most specialist lenders require an introduction from a recognised broker.

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Will you have to pay any fees to remortgage?

If you’re remortgaging your Help to Buy home, there may be fees depending on whether or not you’re paying off any of your equity loan.

You’ll also have to pay any fees and charges associated with your remortgage such as booking fees, valuation fees, legal fees and broker fees.

Get matched with a remortgage specialist

Remortgaging a Help to Buy property and finding the best deal can be tricky so it’s always best to talk to a broker who specialises in this field. They’ll be able to save you both time and money and make sure you’re not paying over the odds for your mortgage.

Our broker matching service can connect you with an expert who will help you find the perfect deal. Give us a call on 0808 189 2301 or make an enquiry and get matched with an expert today for a free initial conversation.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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