Calculate how much you owe on your Help to Buy equity loan when selling or remortgaging, and see your annual interest charges from Year 6 onwards.
⚠️ This calculator provides estimates for guidance only. The actual repayment figure will be confirmed by Target HCA using a RICS Red Book valuation. Interest charges are estimates based on assumed future CPI rates and will differ from actual charges. Always consult a qualified solicitor and financial adviser before making decisions.
The Help to Buy Equity Loan (England) scheme allowed first-time buyers to borrow 20% of a new-build home's purchase price from the government (40% in London), interest-free for the first 5 years. The scheme closed to new applications on 31 March 2023.
The loan must be repaid when you sell, remortgage, or at the end of the mortgage term — whichever comes first. Crucially, you repay a percentage of the market value at the time of repayment, not the original loan amount. This means you share in the property's gain — or loss — with the government.
| Year | Interest Rate | Example: £40,000 loan |
|---|---|---|
| Years 1–5 | 0% (interest-free) | £0/year |
| Year 6 | 1.75% | £700/year (£58/month) |
| Year 7 | ~1.75% + CPI+2% | ~£770–£840/year (estimate) |
| Year 10+ | Increasing each year | Rising significantly |
Interest is calculated on the original loan amount (not the current market value), but the rate increases each year. If you purchased in 2019 and haven't repaid, you'll currently be in Year 7 of interest payments.
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