Frequently Asked Questions

Interest starts on the 5th anniversary of your equity loan — the beginning of year 6. For the first five years you only pay a £1 per month management fee. If you completed in March 2018, for example, interest payments began in March 2023. The starting rate is 1.75% of your original loan amount, calculated monthly.

It depends on when you completed, your loan amount, and how long you keep the loan. Interest starts at 1.75% in year 6 and escalates every year. On a £40,000 equity loan, that's around £58/month initially — but after 10 years of escalation it could be £87/month or more, with over £8,600 paid in total. Use our calculator to see your specific figures.

In year 6, the rate is 1.75%. Each subsequent year, the rate increases by a formula: new rate = previous rate × (1 + inflation index + adjustment). For pre-April 2021 completions it's RPI + 1%. For post-April 2021 it's CPI + 2%. The rate compounds — each year's increase builds on the previous year's higher rate.

If you completed before April 2021, your interest escalates by the Retail Price Index (RPI) plus 1% each year. If you completed from April 2021, it's the Consumer Price Index (CPI) plus 2%. RPI tends to run higher than CPI (typically 1-2% higher), but the +2% adjustment on CPI means the post-2021 formula can escalate faster. Either way, the rate always increases — even when inflation is zero.

No. Help to Buy equity loan interest payments are not tax-deductible for residential homeowners. They're treated as a cost of your housing, similar to mortgage interest (which also isn't deductible for your main home since 2020 changes for landlords). The interest is a pure cost with no tax benefit.

You can repay in full (redemption) or in part (staircasing). For full redemption: get a RICS valuation, apply to your administrator (usually Lenvi), arrange your funding source (remortgage or savings), instruct a solicitor, and complete. The amount you repay is your equity loan percentage of the property's current market value — not the original amount.

Typically 3-6 months from start to finish. The main bottleneck is usually Lenvi (your equity loan administrator), who can take 4-8 weeks to process applications. Add time for the RICS valuation (1-2 weeks), mortgage application if remortgaging (4-8 weeks), and legal completion (2-4 weeks). Start the process well before any time-sensitive deadlines.

A RICS valuation is an independent property valuation carried out by a Royal Institution of Chartered Surveyors-registered surveyor. You need one any time you repay or staircase your equity loan — it determines the current market value, which determines how much you owe. Cost is typically £300-600. The valuation is valid for 3 months, so don't get it too early.

Budget for: RICS valuation (~£300-600), solicitor/conveyancing fees (~£500-1,000), and Homes England administration fee (~£200). If you're remortgaging, add your new mortgage arrangement fees. Total process costs are typically £1,000-1,800 before any mortgage fees. These apply whether you're doing full redemption or partial staircasing.

Yes. You can make partial repayments called 'staircasing'. The minimum payment is 10% of your property's current market value. So if your home is worth £300,000, the minimum staircasing payment would be £30,000. This reduces your equity loan percentage and therefore your ongoing interest payments. You still need a RICS valuation and pay the same process fees.

The minimum staircasing amount is 10% of your property's current market value (not 10% of the equity loan). On a property worth £300,000, that's £30,000. You can staircase multiple times, each time paying off at least 10% of the current value. Each staircasing requires a fresh RICS valuation and incurs process fees.

Yes, and it's how most people fund their equity loan redemption. You remortgage for a higher amount that covers both your existing mortgage balance and the equity loan repayment. You'll need sufficient equity and income to qualify for the larger mortgage. A specialist broker can help assess your options.

Yes, you can remortgage to get a better rate on your existing mortgage without redeeming the equity loan. However, your choice of lenders will be limited — not all lenders accept Help to Buy properties with an outstanding equity loan. You'll also continue paying the escalating HTB interest on top of your new mortgage payment.

You don't legally need one, but it's strongly recommended. Help to Buy redemptions involve specific lender requirements, equity loan administrators, and processes that many general brokers aren't familiar with. A specialist knows which lenders work well with HTB properties, how to navigate Lenvi, and how to structure the remortgage to cover the redemption.

If you're remortgaging to redeem, the equity loan is paid off from the new mortgage funds and the charge is removed from your property. If you're just switching your mortgage rate without redeeming, the equity loan stays in place — you'll have two charges on your property (your mortgage and the equity loan) and continue paying interest on both.

Your equity loan is a percentage of your property's current market value, not a fixed amount. If you have a 20% equity loan and your property is currently worth £350,000, your equity loan is worth £70,000. For interest calculations, it's based on the original purchase price. For redemption, it's based on the RICS-assessed current value.

If your property has fallen in value, the amount you'd need to repay is lower (it's still 20% or 40%, but of a smaller number). However, this can create problems: you may have negative equity in your main mortgage, making it hard to remortgage. In extreme cases, your total debt (mortgage + equity loan repayment) could exceed the property value. Speak to a specialist if you're in this situation.

Good news and bad news. The good: you have more equity, which helps with remortgaging. The bad: you owe more on the equity loan. A 20% loan on a property that's gone from £250,000 to £350,000 means you owe £70,000 instead of £50,000 to redeem. The property growth benefits you on the 80% you own, but the government benefits on their 20%.

You can commission a second RICS valuation at your own cost, but Homes England will typically use the first valuation unless there's a clear error. Some people try to time their valuation strategically (e.g., avoiding peak season or waiting for comparable sales). The valuation is valid for 3 months.

When you sell, the equity loan is repaid from the sale proceeds. If you have a 20% equity loan, 20% of the sale price goes to repay the government. Your mortgage is also repaid from the proceeds. Whatever is left is your equity. For example, if you sell for £350,000 with a 20% HTB loan and £180,000 remaining mortgage: £70,000 goes to HTB, £180,000 to the mortgage, and you keep £100,000.

Help to Buy properties have restrictions on subletting. You cannot let out the whole property. In some circumstances you may be able to get consent to let from your equity loan administrator, but this is discretionary and not guaranteed. If you need to rent out your property, you should seek to repay the equity loan first.

Lenvi (formerly Target Servicing, formerly Target Group) is the main administrator for Help to Buy equity loans in England. They manage your account, process interest payments, and handle redemption and staircasing applications. They're known for slow response times — be patient but persistent, and keep written records of all communication.

Contact your equity loan administrator (usually Lenvi) and request a redemption statement. You'll need to provide a RICS valuation first. They'll calculate the redemption amount based on your equity loan percentage and the valuation figure. Allow 4-8 weeks for processing. You can contact Lenvi at their Help to Buy department directly.

A source of funds certificate is a document from your mortgage lender confirming they will provide the funds to repay the equity loan. Your administrator requires this before they'll proceed with redemption. Your solicitor or broker arranges this as part of the remortgage process. It proves the money is coming from a legitimate, confirmed source.

No. The Help to Buy scheme closed to new applications (final completions were March 2023 in England), but existing equity loans continue under the same terms for up to 25 years. Your loan doesn't change because the scheme closed. You can still staircase, redeem, or continue paying interest as before. The administration (via Lenvi) continues as normal.