Remortgage to Repay Help to Buy
Speak to an Expert Advisor
or
Why Choose Us
What Our Clients Say About Us
Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
29.10.2024
Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
29.10.2024
How the Help to Buy Scheme Works
The Help to Buy scheme allows first-time buyers to purchase a new-build home with just a 5% deposit. The government provides an equity loan of up to 20% (or 40% in London) of the property’s value, which is interest-free for the first five years. After this period, interest kicks in at a rate of 1.75%, increasing annually by the Retail Price Index (RPI) plus 1%.
Repaying this equity loan is a significant milestone for homeowners, and many consider remortgaging as a way to do this.
Can I Remortgage on Help to Buy?
Yes, you can remortgage while under the Help to Buy scheme. However, the process is slightly more complex than a standard remortgage because you need to account for the equity loan. There are two main options:
- Remortgage to Pay Off the Help to Buy Loan: You can remortgage your property to raise the funds needed to pay off the Help to Buy equity loan in full. This process involves increasing your mortgage amount to cover both your existing mortgage balance and the equity loan.
- Remortgage Without Paying Off the Equity Loan: Alternatively, you can remortgage your current mortgage deal without repaying the Help to Buy loan. In this case, you would still owe the government the percentage of the property value represented by the equity loan, and your new mortgage would only cover your existing mortgage balance.
Can I Remortgage to Pay Off the Help to Buy Equity Loan?
Yes, remortgaging to pay off the equity loan is a common option for those who wish to own their property outright. By repaying the equity loan, you will no longer owe a percentage of your property’s value to the government, which can be beneficial if your property has significantly increased in value.
To remortgage to pay off Help to Buy, you’ll need to have enough equity in your home to cover the amount you owe. Lenders will assess your property’s current value and the outstanding amount on your mortgage to determine whether you can borrow enough to cover the equity loan.
Can I Borrow More Money When I Remortgage?
It is possible to borrow more money when you remortgage, provided you have sufficient equity in your property and meet the lender’s affordability criteria. This extra borrowing could be used to pay off the Help to Buy loan or for other purposes such as home improvements.
Mortgage Repayment Calculator
Do Many Lenders Offer Remortgages for Help to Buy?
While there are lenders who specialise in remortgaging with Help to Buy, not all mortgage providers offer this service. It’s important to shop around and compare offers. Ascot Mortgages can help you mortgage broker who understands and help the Help to Buy scheme can be invaluable in in finding the right deal for your circumstances.
What Are My Remortgaging Options if I’m in Negative Equity?
If you’re in negative equity (owing more on your mortgage than your property is worth), your options for remortgaging may be limited. In such cases, it might not be possible to remortgage to repay the Help to Buy loan. However, you can explore options such as:
- Staying on Your Current Deal: If your current mortgage rate is competitive, you might choose to stick with it until property values improve.
- Overpaying: If possible, make overpayments on your mortgage to reduce your debt more quickly.
- Discussing with Your Lender: Some lenders may be willing to work with you to find a solution, especially if you can demonstrate that you can afford higher payments.
Today’s best buy mortgages
Latest mortgage best buys
Based on a mortgage of £300,000 at 75% LTV and 25 years
| Speak with Us | Interest Rate | Mortgage Type | Monthly Repayment Amount | Total Fees | Max LTV |
|---|---|---|---|---|---|
 | 4.14% | Fixed | £1,219 | £30 | 75% |
| 4.18% | Fixed | £1,216 | £1,025 | 75% |
| 4.18% | Fixed | £1,215 | £999 | 75% |
| 4.20% | Fixed | £1,220 | £1,403 | 75% |
Where to Start with a Help to Buy Remortgage
If you’re considering a help to buy remortgage, the first step is to assess your financial situation and understand how much you need to borrow to repay the equity loan. From there, you can start exploring mortgage options, with a mortgage broker at Ascot Mortgageseither on your own or with the help of a broker. It’s important to consider all the costs involved, including any early repayment charges on your existing mortgage and legal fees.
Apply for a Mortgage
Get things moving, apply for a remortgage.
Free unbiased mortgage advice is just a phone call away.
FAQ
01/ Can I remortgage on Help to Buy?
Yes, you can remortgage while under the Help to Buy scheme. There are two main options: remortgaging to pay off the Help to Buy equity loan in full or remortgaging without repaying the equity loan, which means you’ll continue to owe a percentage of your property’s value to the government.
02/ Can I remortgage to pay off the Help to Buy equity loan?
Yes, many homeowners choose to remortgage to pay off their Help to Buy equity loan. This involves increasing your mortgage amount to cover both your existing mortgage balance and the equity loan, allowing you to own your home outright without owing a percentage of its value to the government.
03/ Can I borrow more money when I remortgage?
It is possible to borrow more money when you remortgage, provided you have sufficient equity in your property and meet the lender’s affordability criteria. This extra borrowing could be used to pay off the Help to Buy loan or for other financial needs, such as home improvements.
04/ Do many lenders offer remortgages for Help to Buy?
Not all lenders offer remortgages for properties under the Help to Buy scheme, but there are several that do. It’s important to shop around or consult a mortgage broker to find lenders who are familiar with Help to Buy and can offer competitive rates.
Meet Our Team
A simples guide to mortgages
Video
Contact Us
Legal
Ascot Mortgages authorised and regulated by the Financial Conduct Authority and can be found on the FCA register (www.fca.org.uk) under reference 776062. The FCA do not regulate some forms of mortgages. The guidance and advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate it will be £599 per mortgage account. Ascot Mortgages Ltd give you the option to pay a non-refundable fee of £1299 payable with the application. If this option is taken, Ascot Mortgages Ltd will refund any procuration fee received by the lender.
Ascot Mortgages Limited is registered in England and Wales and have their registered office at 8 Webster Court, Westbrook, Warrington, WA5 8WD. The company’s registration number is 06764971.
We are a credit broker, not a lender. We work with the whole of the lending market. Typically; we will receive commission that will vary depending on the lender, product, or other permissible factors. The nature any commissions model will be confirmed to you before you proceed.
ICO Registration number is Z1842187
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON ITtypically; we will receive commission
©2025 AscotMortgages.co.uk – All Rights Reserved
