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Enter your equity loan details to calculate your management fees and repayment cost.
Calculate your ongoing management fees from year 6 and the cost of repaying your equity loan based on your current property value.
Enter your equity loan details to calculate your management fees and repayment cost.
The Help to Buy equity loan is fee-free for the first five years. From year 6 onwards, Homes England charges a monthly management fee. The year 6 fee is set at 1.75% of the original equity loan amount per year. From year 7, the fee increases annually by RPI inflation plus 1 percentage point. This means fees compound upwards each year you hold the loan, making it increasingly expensive over time.
The Help to Buy equity loan is not a fixed cash amount · it is a percentage of your property value. If you borrowed 20% of a £280,000 property (£56,000), but your home is now worth £310,000, you owe 20% of £310,000 = £62,000. The loan grows or shrinks with your property value. You repay the same percentage of whatever the property is independently valued at on the day of repayment. You cannot repay less than 10% of the property value at a time.
The equity loan must be repaid when you sell the property, when your mortgage term ends, or at the end of the equity loan term (typically 25 years from purchase). You can choose to repay it earlier through staircasing · buying back part of the loan in chunks of at least 10% of the current property value. Many borrowers choose to repay before year 6 to avoid management fees entirely. After year 6 the growing annual fees add significantly to the total cost.
For informational purposes only · Not financial advice · Fees are based on published Homes England rates · Speak to a mortgage adviser about your options