Your 2026 interest rate
If you're reading this, you're probably either about to hit year 6 (when interest starts) or you're wondering what this year's rate increase looks like. Here's what you need to know for 2026.
Your rate depends on two things: when you completed (which determines your formula and how many years you've had) and the latest inflation figures (RPI or CPI, depending on your completion date).
2026 inflation figures
Help to Buy interest rate adjustments are made each April, using the prior year's published inflation figures:
- RPI (for pre-April 2021 completions): The Retail Price Index has been running at approximately 3-4% through 2025. Your rate adjustment is RPI + 1%.
- CPI (for April 2021+ completions): The Consumer Price Index has been running at approximately 2-3%. Your rate adjustment is CPI + 2%.
Both formulas produce a similar effective escalation of around 4-5% per year on your interest rate. The exact figure depends on the specific inflation data used by Homes England for the April 2026 adjustment.
What you're paying in 2026, by completion year
Here's an approximate breakdown of what different cohorts of Help to Buy borrowers are paying in 2026, assuming RPI at ~3.5% and CPI at ~2.5%:
| Completed | Year in 2026 | Approx. rate | Monthly (£40k loan) | Monthly (£80k loan) |
|---|---|---|---|---|
| 2019 | 8 | ~1.91% | ~£64 | ~£127 |
| 2020 | 7 | ~1.83% | ~£61 | ~£122 |
| 2021 (pre-Apr) | 6 | 1.75% | £58 | £117 |
| 2021 (Apr+) | 6 | 1.75% | £58 | £117 |
| 2022 | 5 | Interest-free | £1 fee | £1 fee |
| 2023 | 4 | Interest-free | £1 fee | £1 fee |
Figures are estimates based on assumed inflation rates. Your actual rate may differ slightly. Get your exact figures →
If you're hitting year 6 in 2026
If you completed in 2020 or early 2021, you're about to start paying interest for the first time. Here's what to expect:
- Your starting rate is 1.75% — This is the same for everyone, regardless of when you completed. On a £40,000 equity loan, that's about £58/month.
- From next April, it escalates — Your rate will increase based on your completion date formula (RPI+1% or CPI+2%). This happens every April for the life of the loan.
- Lenvi will contact you — You should receive correspondence about your interest payments starting. If you haven't heard from them, contact them proactively.
- Now is the time to plan — If you're going to remortgage to redeem, starting the process now means you minimise the interest payments. The process takes 3-5 months.
What to do about your 2026 rate
Whatever year you're in, the escalation only gets worse. Every year you wait costs more. Your main options:
- Remortgage to redeem — Eliminate the equity loan entirely. Best option for most people. Read the guide →
- Staircase — Partially repay to reduce your rate. Read the guide →
- Use the calculator — Compare the cost of each option over 5 and 10 years using your actual numbers.
Looking ahead: 2027 and beyond
The final Help to Buy completions were in March 2023. Those borrowers will start paying interest in 2028. After that, every Help to Buy borrower in England will be paying escalating interest.
With around 85% of Help to Buy equity loans still active, the pressure to find solutions will only grow. If you're thinking about your options, starting sooner rather than later gives you more flexibility and lower cumulative costs.