Why remortgaging is usually the best option
Remortgaging to redeem your Help to Buy equity loan means taking out a larger mortgage that covers both your existing balance and the equity loan repayment. You end up with one mortgage, no equity loan, and no more escalating HTB interest.
For most people with enough equity and income, this is the best long-term option. You swap escalating, dead-money interest payments for a normal mortgage that actually pays down your debt. The maths usually works strongly in your favour, especially if you've been paying HTB interest for several years.
Use the calculator to compare remortgaging vs keeping your equity loan →
The remortgage process step by step
The process typically runs over 3-5 months. The biggest variable is Lenvi's processing time, which can range from 2 weeks to 10+ weeks depending on their backlog.
| Step | What happens | Timeline |
|---|---|---|
| 1 | Speak to a specialist broker | Week 1 |
| 2 | Get a RICS valuation of your property | Weeks 1-2 |
| 3 | Submit valuation to Lenvi and request redemption figure | Weeks 2-3 |
| 4 | Wait for Lenvi to process (the slow part) | Weeks 3-10 |
| 5 | Apply for new mortgage with broker | Weeks 4-8 (overlap) |
| 6 | Mortgage offer issued | Weeks 8-12 |
| 7 | Solicitor handles legal work and source of funds certificate | Weeks 10-14 |
| 8 | Completion — equity loan redeemed | Weeks 14-20 |
Key tip: Start the mortgage application while waiting for Lenvi. Steps 4 and 5 can run in parallel, which saves significant time.
Costs involved
Budget for these costs on top of the equity loan redemption amount itself:
| Item | Typical cost |
|---|---|
| RICS valuation | £300-600 |
| Homes England admin fee | ~£200 |
| Solicitor/conveyancing fees | £500-1,000 |
| New mortgage arrangement fee | £0-1,500 |
| Total process costs (excl. mortgage fee) | £1,000-1,800 |
These costs are one-off. Compare them to the ongoing cost of HTB interest: on a £40,000 loan, you might pay £700-1,000+ per year in interest that reduces nothing. The process costs pay for themselves quickly.
Which lenders will remortgage a Help to Buy property?
This is one of the most frustrating aspects of Help to Buy. Not all lenders will accept a remortgage on a property with an outstanding equity loan charge.
“Which lenders remortgage help to buy equity loan? Few is the simple answer.”
The challenge is that the equity loan creates a second charge on your property. Many mainstream lenders won't accept this. If you're remortgaging to redeem the equity loan, more lenders are willing because the second charge will be removed at completion.
If you're just looking to switch your mortgage rate without redeeming, your options are much more limited. This is why a specialist broker is valuable — they know which lenders handle HTB cases and can navigate the specific requirements.
Dealing with Lenvi
Lenvi (formerly Target Servicing) administers most Help to Buy equity loans in England. They have a poor reputation for response times and communication. Being prepared helps.
“Mortgage offers expiring from lack of movement and zero communication.”
Tips for dealing with Lenvi:
- Keep written records of everything — email is better than phone calls
- Follow up every 2 weeks if you haven't heard back
- Get your RICS valuation done before contacting them to avoid delays
- Be aware that their processing can take 4-8 weeks once submitted
- If your mortgage offer has a time limit, tell Lenvi upfront
- Escalate via the complaints process if response times exceed their stated SLAs
Common pitfalls to avoid
- RICS valuations expire after 3 months — If Lenvi or your mortgage application takes too long, you may need to pay for a second valuation.
- Early repayment charges on your current mortgage — Check whether your existing deal has ERCs before committing. It may be worth waiting until your fixed term ends.
- Underestimating the redemption amount — Remember, it's your equity loan percentage of the current property value. If your property has gone up, you owe more than the original loan amount. Check your current loan value →
- Not using a specialist broker — General brokers may not know the HTB-specific lender requirements and processes, leading to wasted time and rejected applications.
Is remortgaging to redeem worth it?
In most cases, yes. The compound escalation of HTB interest means that the longer you wait, the more you pay in dead money. A £40,000 equity loan costs over £8,600 in interest over 10 years — and that's at a relatively modest inflation assumption. None of it reduces your loan.
By contrast, every mortgage payment reduces your debt. Even at higher mortgage rates, you're building equity instead of burning money.
The main reasons to not remortgage:
- You don't have enough equity or income to qualify for the larger mortgage
- You're planning to sell within the next year or two anyway
- Your current mortgage has significant early repayment charges
- Your property is in negative equity
The calculator shows you the exact cost comparison for your situation, including process costs and interest savings over 5 and 10 years.