Category: Remortgages

  • Buy-to-let remortgage: how it works and when to switch

    Buy-to-let remortgage: how it works and when to switch

    As your buy-to-let mortgage deal approaches its end, you may be wondering whether to stay with your current lender or look elsewhere. Perhaps you’re also considering improvements to the property, releasing equity for another purchase or changing your borrowing to suit your longer-term plans.

    Whatever prompts the review, it helps to understand what switching would mean for you. A lower advertised rate can look appealing, but fees, a fresh valuation and checks on your rental income can all affect which buy-to-let mortgages are available and whether moving lender is worthwhile.

    In this guide, we’ll walk through when to start reviewing your deal, how a remortgage compares with a product transfer, and what lenders will assess. We’ll also explain the costs and equity-release options, with practical examples to help you judge your next step.

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    What is a buy-to-let remortgage?

    A buy-to-let remortgage replaces your existing mortgage with a new one secured against the same rental property, usually through a different lender.

    You may change the rate, mortgage term or repayment basis, subject to criteria. You can also apply to borrow more or use savings to reduce the balance.

    The basic process resembles how remortgaging works on a residential property, with additional attention to the rental position.

    A product transfer means choosing another mortgage product with your existing lender. It may involve fewer checks, but it isn’t necessarily automatic or fee-free.

    Why do landlords remortgage buy-to-let properties?

    The existing deal is ending

    Your mortgage will usually move onto the lender’s follow-on or reversionary rate when your fixed-rate mortgage ends unless you arrange something else. Check your offer for the rate that applies and when it starts.

    To change the rate or product

    You might want another fixed period for payment certainty, a different product type or more flexible overpayment and early repayment terms. Switching won’t necessarily reduce your monthly payment, particularly if your previous rate was lower than those now available.

    To release equity

    Additional borrowing could help fund repairs, improvements or a buy-to-let deposit on another property. The amount available depends on the lender’s assessment of the value, rent, proposed use of the money and your circumstances.

    To restructure borrowing

    You may want to change the term, repayment method or arrangements across several properties. Transferring a personally owned property into a company is different: it involves a change of ownership and can have legal and tax consequences.

    When should you start reviewing your BTL mortgage?

    Start reviewing several months before the current deal ends. The right timing depends on your early repayment charge, the new lender’s offer validity and the work needed to complete the application.

    One of the first things we would check is when any early repayment charge reduces or ends. Beginning a review early doesn’t mean completing the switch early.

    Check the deal-end date and charges, ask your lender about product-transfer options, then compare suitable alternatives. Allow time for underwriting, valuation and legal work, especially for company or portfolio cases. Coordinate completion to avoid unnecessary charges or time on the reversionary rate.

    Product transfer or remortgage: which should you consider?

    Your remortgage vs product transfer comparison should cover both the process and the overall cost.

    FeatureProduct transferRemortgage
    LenderExisting lenderUsually a different lender
    ApplicationMay be streamlinedNormally a new application
    Rental assessmentDepends on lender and transactionFresh checks may apply
    ValuationMay not be requiredCommonly required
    Legal workOften limitedUsually required
    Product choiceExisting lender’s rangeWider eligible market
    Additional borrowingMay be available separatelyCan potentially be included
    Main considerationConvenience and existing-lender pricingEligibility and switching costs

    A simpler product transfer can still cost more over the deal period. Equally, a lower rate elsewhere may offer little benefit after fees. Keeping your existing deal until its charges expire is also a valid option.

    What will a new BTL lender assess?

    Buy-to-let mortgage criteria vary, but a lender may consider:

    • The current value, mortgage balance and requested loan.
    • Loan-to-value (LTV), meaning the mortgage as a percentage of the property’s value.
    • Rent, local rental demand, tenancy arrangements and property type.
    • Your credit history, landlord experience and personal income where required.
    • Other properties, mortgages and financial commitments.
    • The company structure, directors and shareholders, where applicable.
    • The purpose of any additional borrowing.

    Before comparing rates, we would establish the borrowing you need and check the property, rent and existing mortgage. That helps identify realistic options before you commit to an application.

    Will the rent be reassessed when you remortgage?

    A new lender may reassess the rent using an interest coverage ratio (ICR): the rental income compared with the mortgage interest cost. It may calculate that cost using a stressed interest rate to test affordability at a higher rate.

    The rent used may reflect a valuer’s market assessment, rather than solely your tenancy agreement. Required cover and stress rates vary with lender, product, tax position and ownership. Some lenders consider personal income to supplement rent, often called top-slicing.

    The PRA’s underwriting standards exclude remortgages without additional borrowing from certain expectations, allowing specified fees to be disregarded. This doesn’t guarantee acceptance or remove lender checks.

    Your previous mortgage approval therefore doesn’t establish what you can borrow today. Our buy-to-let mortgage calculator helps you explore rental cover, yield and LTV, but gives estimates rather than a lending decision.

    How does the property valuation affect a BTL remortgage?

    The new lender normally needs a current valuation to establish the LTV and may also assess market rent. Its figure can differ from your estimate or an estate agent’s appraisal.

    For example, a £180,000 mortgage against an estimated £300,000 value gives a 60% LTV. If the lender values the property at £270,000, the LTV becomes approximately 66.7%.

    That change could affect the products available or reduce additional borrowing. A higher valuation may improve the LTV, but doesn’t override rental-affordability requirements.

    How much does it cost to remortgage a buy-to-let?

    The cost of remortgaging can include an early repayment charge, product or arrangement fee, valuation, legal work, mortgage-advice fee and lender administration or exit charges. Company borrowing may involve additional legal costs.

    Some products include valuation or legal-service incentives, subject to conditions. Check what these cover, particularly if your case needs specialist work.

    Compare the rate, monthly payments, upfront and added fees, incentives and early repayment terms over the period you expect to keep the mortgage. A product fee added to the loan remains payable and may attract interest.

    For illustration, saving £50 a month produces £1,200 over two years. If switching costs £2,000 more than the alternative, those payment savings alone wouldn’t cover the difference. This simplified comparison assumes the same borrowing and repayment basis.

    Can you remortgage a buy-to-let to release equity?

    Potentially, provided the requested mortgage meets the lender’s valuation, maximum LTV, rental-affordability and applicant requirements.

    Consider this illustrative example:

    ItemAmount
    Property value£300,000
    Existing mortgage£150,000
    Existing LTV50%
    Proposed new mortgage£210,000
    New LTV70%
    Gross amount released before fees£60,000

    Although the property initially holds £150,000 of equity, that doesn’t mean all of it is available to withdraw. The proposed £210,000 mortgage must still pass the lender’s assessment, including whether the purpose of the extra borrowing is acceptable.

    Borrowing more increases your secured debt and may increase interest costs. We would recommend checking that rent still leaves room for maintenance, tax and periods without a tenant.

    The use of borrowed money can affect its tax treatment. HMRC’s guidance on rental income and expenses explains the distinction between capital repayments and finance costs. Ask a qualified tax adviser how the rules apply to your ownership and proposed use of the funds.

    Can you remortgage a limited-company buy-to-let?

    Yes, potentially. A limited company buy-to-let mortgage is in the company’s name, but lenders may also assess its directors and shareholders. Directors may need to provide personal guarantees.

    Rent, value and LTV still matter. Newly formed and established companies can be treated differently, and an ordinary trading company may have different options from a property special purpose vehicle (SPV). Limited company buy-to-let rates and lender choice can also differ from personal borrowing.

    Refinancing an existing company-owned property is distinct from moving personal property into a company. The latter needs separate legal and tax consideration.

    What changes for portfolio landlords?

    The PRA treats borrowers with four or more distinct mortgaged buy-to-let properties in aggregate as portfolio landlords and expects specialist underwriting. Its portfolio lending guidance explains this approach.

    A portfolio landlord mortgage application may require a schedule of values, rents, mortgage balances and payments, plus assets, liabilities, cashflow, experience and a business plan. Lenders apply their criteria differently.

    We would prepare the wider portfolio details early, even when only one mortgage is being replaced.

    How does the BTL remortgage process work?

    1. Review the current mortgage. Check the balance, rate, deal-end date, charges, remaining term, repayment basis and available product transfers.
    2. Set the objective. Decide whether you need to replace an ending deal, control costs, change terms or release equity.
    3. Gather property information. Bring together the estimated value, monthly rent, tenancy details, property type and relevant licensing information.
    4. Compare eligible products. Assess existing-lender options against alternatives, allowing for fees and the intended deal period.
    5. Apply. Provide the documents needed for checks on you, the property and, where relevant, the company or portfolio.
    6. Complete valuation and legal work. The lender may use a physical, desktop or automated valuation. The conveyancer handles the legal requirements for replacing the mortgage.
    7. Complete the switch. The new mortgage repays the existing lender. Any agreed additional funds are released through the lender’s and conveyancer’s process.

    Timescales depend on underwriting, valuation, legal work and case complexity. Avoid committing released funds to another purchase before the financing and completion arrangements are confirmed.

    When might remortgaging not be worthwhile?

    Switching may offer little benefit if early repayment charges or fees outweigh the savings, particularly on a small mortgage balance. A competitive product transfer may be more suitable.

    A lower valuation, insufficient rental cover or limited options for your property or company structure can also restrict a new application. If you expect to sell soon, consider whether a new deal’s early repayment terms suit that plan.

    Extending the term can increase long-term interest costs, even if repayments fall. Increasing the balance adds debt. Waiting until charges expire or reducing the borrowing requested may make a later application more practical.

    What we would check before recommending a route

    We would ask about your current lender, balance, rate, deal-end date and early repayment charge, alongside the property’s value, rent, type and ownership.

    We would also establish the requested loan, purpose of additional borrowing, company details where relevant, other rental properties, income, credit history and plans to keep or sell the property.

    Before recommending a route, we would compare eligible products and the total cost over your intended borrowing period. Our buy-to-let mortgage advisers can help you assess whether to keep the current deal, arrange a product transfer or move lender.

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    Frequently asked questions

    How early can you remortgage a buy-to-let?

    Start reviewing several months before the deal ends. Application and completion timing depend on early repayment charges, lender timescales and how long the new offer remains valid.

    Can I remortgage a buy-to-let before the fixed rate ends?

    Potentially, but an early repayment charge may apply. Compare that charge and other switching costs with the benefit of changing early.

    Does a BTL lender check the rent again?

    A new lender may check existing or expected market rent and apply its own calculation. Evidence can include a valuation or tenancy agreement.

    Is a buy-to-let product transfer the same as remortgaging?

    A product transfer changes your deal with the existing lender. A remortgage replaces the mortgage, usually by moving to another lender.

    Can I release equity when remortgaging a rental property?

    Potentially. The amount depends on the valuation, existing balance, maximum LTV, rental assessment and lender criteria, including the use of the money.

    Do I need a solicitor for a BTL remortgage?

    Moving lender normally involves a solicitor or conveyancer. Some products include a legal-service incentive, but its scope and conditions vary.

    Can I remortgage a buy-to-let through a limited company?

    Potentially, with checks on the company, people behind it, property and rent. Transferring personal ownership into a company is a separate transaction.

    Can I remortgage if my rental property is empty?

    Possibly. Lenders differ on vacant properties and may require evidence of expected market rent and arrangements for letting the property.

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  • What happens to your Help to Buy equity loan after 5 years?

    What happens to your Help to Buy equity loan after 5 years?

    If you’re approaching Help to Buy after 5 years, you don’t suddenly have to repay your equity loan in full. The main change is that the interest-free period ends and you start paying interest from the beginning of year six.

    The Help to Buy interest rate starts at 1.75% in year six, and you continue paying the £1 monthly management fee. Importantly, neither of these payments reduces the equity loan itself.

    Help to Buy: Equity Loan is now closed to new applicants in England, but existing homeowners still need to manage and eventually repay their loans. Below, we’ll explain what actually changes after five years, how the interest works and the options you can consider.

    First-time buyers researching the government’s newly announced equity-loan proposal can read our Your First Home scheme guide. Your First Home is a separate proposed scheme, not a continuation of the previous Help to Buy loan, and applications are not yet open.

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    Do you have to repay Help to Buy after 5 years?

    No. Reaching the end of the first five years doesn’t normally create an automatic deadline to repay your Help to Buy equity loan.

    We tend to see people assume the fifth anniversary is a repayment deadline. In practice, it’s usually a change in cost, because this is when the interest-free period ends.

    Under the current Help to Buy: Equity Loan rules for England, you normally have to repay the equity loan in full when you:

    • reach the end of the equity-loan term, which is normally 25 years
    • pay off your main repayment mortgage
    • sell the property
    • are required to repay it because of certain breaches of the scheme terms

    You can also choose to make a part repayment or repay the equity loan in full earlier.

    So, if you’re wondering what happens after 5 years with Help to Buy, the immediate change is usually the start of interest payments, not a demand for the whole equity loan.

    What interest do you pay on Help to Buy after 5 years?

    According to Homes England’s guidance on Help to Buy interest, interest becomes payable from the beginning of year six, starting at 1.75% per year.

    If you haven’t previously made a part repayment, that rate is applied to the original amount of equity loan you borrowed. It isn’t calculated using your home’s current market value.

    The annual interest is then divided into monthly payments. You’ll also continue paying the separate £1 monthly management fee.

    Example of Help to Buy interest in year 6

    Homes England uses the example of someone who originally bought a £200,000 home with a 20% equity loan:

    • Original equity loan: £40,000
    • Year-six interest rate: 1.75%
    • Annual interest: £700
    • Approximate monthly interest: £58.33
    • Monthly management fee: £1

    That means the Help to Buy loan interest after 5 years would be around £58.33 per month in this example, before adding the £1 management fee.

    This is only an illustration. Your own payment depends on your equity-loan amount and whether you’ve already made any part repayments.

    PeriodHelp to Buy interestManagement feeEquity loan
    Years 1 to 5No interest£1 per monthEquity percentage remains
    Year 61.75%£1 per monthInterest doesn’t repay the equity loan
    Year 7 onwardsCan increase annually under the relevant scheme rules£1 per monthEquity percentage remains until repayment

    Does your Help to Buy interest rate increase every year?

    Yes. After Help to Buy year 6, the interest rate can increase each April.

    Homes England uses different annual increase formulas depending on which version of the English Help to Buy: Equity Loan scheme you used.

    Help to Buy: Equity Loan 2013 to 2021

    For the earlier 2013 to 2021 scheme, the interest rate is increased each year using Retail Price Index (RPI) plus 1% under the scheme’s formula.

    Help to Buy: Equity Loan 2021 to 2023

    For the later 2021 to 2023 scheme, the rate is increased using Consumer Price Index (CPI) plus 2%.

    These are annual increases to the existing interest rate rather than percentage points simply being added to it.

    This means there isn’t one universal Help to Buy year 7 rate. It depends on which scheme applies to you and the relevant inflation figure used for that year’s calculation.

    Homes England normally tells borrowers about their updated interest rate before the change is applied in April.

    Does the interest reduce your Help to Buy loan?

    No.

    This is one of the most important things we’d want someone to understand when reviewing Help to Buy after 5 years.

    Your Help to Buy interest is a charge for having the equity loan. The £1 monthly management fee is also a charge. Neither payment repays the equity loan itself.

    That’s different from the capital element of a normal repayment mortgage payment.

    For example, if your Help to Buy equity loan represents 20% of your property’s value and you simply continue paying the required interest and fees, that 20% equity share doesn’t gradually fall because you’ve paid interest.

    If you make a formal part repayment, however, the outstanding equity percentage reduces. Your future Help to Buy interest payments will then also reduce because the amount on which interest is calculated becomes smaller.

    Can the amount you owe Help to Buy still increase?

    The important distinction is between interest and the Help to Buy redemption amount.

    Your Help to Buy interest is calculated using the monetary equity-loan amount. Before any part repayment, that’s based on the amount originally advanced to you.

    The amount needed to repay the equity loan is different. It is based on the percentage of your home that remains subject to the equity loan and the property’s relevant market value when you repay it.

    For example:

    • Original purchase price: £200,000
    • Help to Buy equity loan: 20%
    • Original equity loan: £40,000
    • Property value when repaying: £250,000
    • Approximate full repayment: £50,000

    If the property were worth less instead, the percentage-based repayment amount could also be lower.

    So paying Help to Buy interest doesn’t freeze the amount you’ll eventually repay at the original cash amount.

    When you formally repay the loan, Homes England requires a qualifying RICS market valuation to establish the property’s current value.

    What are your options after the first 5 years?

    There’s no single answer that’s appropriate for every homeowner. Broadly, you can continue with the equity loan, make a part repayment or repay it in full.

    Keep the Help to Buy equity loan

    You can continue with your existing Help to Buy arrangement, subject to its terms. If your mortgage deal is also ending, our guide to remortgaging while keeping your Help to Buy loan explains that route.

    You’ll continue paying:

    • the applicable Help to Buy equity loan interest
    • the £1 monthly management fee

    The outstanding equity share remains in place until you make a repayment.

    We wouldn’t assume that keeping the equity loan is automatically the wrong option simply because the interest-free period has ended. Its cost needs to be considered alongside your mortgage, circumstances and future plans.

    Repay part of the equity loan

    You may be able to make a part repayment.

    Under Homes England’s Help to Buy remortgage and repayment process, a part repayment must normally be at least 10% of your home’s current market value, and you cannot leave less than 5% outstanding.

    Making a part repayment reduces the equity percentage you still owe and can also reduce the amount on which your future Help to Buy interest is calculated.

    Repay it in full

    You may choose to pay off your Help to Buy equity loan completely using:

    • your own savings or other available funds
    • proceeds when selling the property
    • additional mortgage borrowing through a remortgage

    The right route depends on your circumstances and the costs involved.

    If you’re considering additional mortgage borrowing, our remortgage calculator can help you estimate how changing the mortgage balance could affect your repayments. The figures are illustrative rather than an indication that a particular mortgage will be available.

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    Can you remortgage after 5 years to pay off Help to Buy?

    Potentially, yes.

    A Help to Buy remortgage after 5 years can sometimes be used to increase your first-charge mortgage and use the extra borrowing to repay the equity loan.

    That doesn’t mean the additional borrowing will automatically be available.

    If someone wants to remortgage to pay off their Help to Buy equity loan, we’d usually want to establish the current mortgage balance, Help to Buy percentage, estimated property value, income and financial commitments before assuming a larger mortgage is realistic.

    The resulting mortgage still has to meet the lender’s affordability assessment, loan-to-value limits, credit criteria and property requirements.

    Lender rules also differ. Some lenders currently require the Help to Buy equity loan to be repaid completely when remortgaging to them, while others can consider certain part-repayment structures.

    Before someone pays for the formal Help to Buy valuation, we’d normally want to sense-check whether the proposed borrowing appears affordable and whether the resulting LTV fits suitable lender criteria.

    You can find more information about help with remortgaging and how lenders assess a new mortgage before starting the formal redemption process.

    Is it cheaper to repay Help to Buy after 5 years?

    There’s no universal answer.

    We wouldn’t simply compare a 1.75% Help to Buy loan interest rate with a mortgage rate and assume whichever percentage is lower must be the cheaper option.

    They’re structurally different types of borrowing.

    When we’re reviewing Help to Buy after 5 years, we’d normally consider factors including:

    • your current and future Help to Buy interest
    • the £1 management fee
    • the equity percentage you still owe
    • your property’s current value
    • the estimated Help to Buy repayment amount
    • the amount of mortgage borrowing required
    • the mortgage interest rate
    • the remaining mortgage term
    • mortgage product and remortgage fees
    • legal and Help to Buy administration costs
    • the RICS valuation cost
    • any early repayment charge on your existing mortgage
    • how long you expect to keep the property

    A lower monthly payment doesn’t automatically mean lower overall borrowing costs.

    For example, increasing your mortgage and extending its term could make the monthly payment look more manageable while also meaning that interest is charged over a longer period.

    We tend to look at the mortgage and Help to Buy position together rather than comparing two headline interest rates on their own.

    What would we check before deciding whether to repay Help to Buy?

    If we were reviewing your Help to Buy equity loan after 5 years, we’d normally want to establish:

    • which Help to Buy scheme you used
    • the original equity-loan amount and percentage
    • whether you’ve already made a part repayment
    • your current Help to Buy interest rate
    • your existing mortgage balance and rate
    • when your current mortgage deal ends
    • whether an early repayment charge applies
    • your approximate property value
    • your income and employment or self-employment position
    • your regular credit commitments
    • your credit history
    • your remaining mortgage term
    • your plans for the property

    These figures give a much more useful picture than simply asking whether a 1.75% rate sounds cheap or expensive.

    What if you cannot afford to repay Help to Buy yet?

    Reaching year five doesn’t normally mean that you suddenly have to find the money to clear your entire equity loan.

    You can generally continue with the equity loan subject to the scheme terms, while paying the applicable interest and £1 monthly management fee.

    You can then review your position again later.

    However, if you’re struggling to meet the Help to Buy interest or management-fee payments, Homes England’s current guidance says you should contact Help to Buy Customer Services as soon as possible rather than allowing unpaid amounts to build up.

    Should you review your Help to Buy loan when year 5 ends?

    The fifth anniversary can be a useful point to review your position because your costs are changing.

    But the end of the interest-free period doesn’t, by itself, tell you whether you should keep, partially repay or fully repay your Help to Buy loan.

    The main points to remember are:

    • Year five isn’t normally an automatic repayment deadline
    • Interest starts from year six
    • The interest doesn’t reduce your equity loan
    • Your property’s market value affects the eventual repayment amount
    • Keeping, partially repaying and fully repaying the loan have different financial consequences
    • Remortgaging may be one way to fund repayment if the borrowing meets affordability and lender criteria

    If we were reviewing this with you, we’d compare your Help to Buy position with your current mortgage, property value, borrowing capacity and future plans before deciding whether changing anything makes sense.

    Thinking about paying off Help to Buy?

    If your Help to Buy interest-free period is ending, Monday Mortgages can help you review the numbers and understand whether keeping the equity loan, repaying some or all of it, or using a remortgage to repay Help to Buy could fit your circumstances.

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    Frequently asked questions

    What happens when Help to Buy reaches 5 years?

    When Help to Buy reaches 5 years, the interest-free period ends. Interest becomes payable from the beginning of year six at an initial rate of 1.75%, and the £1 monthly management fee continues. You don’t automatically have to repay the whole equity loan simply because five years have passed.

    What is the Help to Buy interest rate after 5 years?

    The Help to Buy interest rate after 5 years starts at 1.75% in year six. From then on, it can increase each year. The 2013 to 2021 scheme uses an RPI plus 1% calculation, while the 2021 to 2023 scheme uses CPI plus 2%.

    Does paying Help to Buy interest reduce the loan?

    No. Help to Buy interest and the £1 monthly management fee are charges and don’t repay the equity loan. The outstanding equity percentage only reduces when you make an eligible part or full repayment.

    Do I have to pay Help to Buy back after 5 years?

    No, not simply because the five-year interest-free period has ended. Full repayment is normally required by the end of the equity-loan term, when you pay off your repayment mortgage, when you sell the property, or in certain other circumstances under the scheme terms.

    Can I remortgage after 5 years to repay Help to Buy?

    Potentially. You may be able to increase your mortgage to repay the equity loan, but the larger mortgage must meet the lender’s affordability, LTV, credit and property criteria. Lender rules on Help to Buy repayment also differ.

    Does the amount I owe Help to Buy increase if my home goes up in value?

    It can. The repayment amount is based on the outstanding equity percentage and your property’s relevant market value when you repay. If the property’s value rises, the cash amount required to repay the same percentage can rise. If its value falls, the repayment amount can also fall.

    Can I repay part of my Help to Buy loan?

    Potentially. Homes England currently allows part repayments of at least 10% of the property’s current market value, and you cannot leave less than 5% outstanding. A qualifying valuation and the formal Help to Buy repayment process are required.

    Is it better to pay Help to Buy off or keep it?

    There isn’t a universal answer. You need to compare the Help to Buy interest and equity share with the cost of any replacement mortgage borrowing, fees, mortgage term, property value and your future plans. Monthly payments alone don’t show the total cost.

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  • Can you remortgage with Help to Buy without paying it off?

    Can you remortgage with Help to Buy without paying it off?

    You do not necessarily have to repay your Help to Buy equity loan when your mortgage deal ends. You may be able to remortgage with Help to Buy still in place if the mortgage balance does not increase and the lender accepts the second charge. Affordability, credit history, the property and lender criteria also matter.

    The process differs depending on whether you stay with your lender or move. Staying may require fewer steps. Moving requires Homes England’s permission and a Deed of Postponement so the new mortgage keeps the first charge. This guide covers Help to Buy: Equity Loan in England.

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    Can you keep your Help to Buy loan when you remortgage?

    Potentially, yes. The Help to Buy equity loan can remain as a second charge while the first mortgage changes, but the mortgage lender must accept that arrangement.

    Under Homes England’s route for remortgaging without borrowing more, the new mortgage balance should not increase, apart from permitted lender charges. The £1 monthly management fee, any interest due and the outstanding equity percentage continue. Fees and interest do not reduce the equity loan.

    We would first establish whether you need a new deal or also want extra money, because that changes the Homes England process and suitable lenders.

    Do you have to repay Help to Buy when your mortgage deal ends?

    No, not solely because a fixed, tracker or discounted mortgage deal has ended. The mortgage deal and the Help to Buy equity loan are separate borrowing arrangements.

    The end of your mortgage deal may move you onto the lender’s standard variable rate. Separately, the end of the five-year Help to Buy interest-free period means interest starts to become payable. It is not an automatic repayment deadline.

    Help to Buy: Equity Loan is closed to new applicants in England, but existing loans continue.

    What is the difference between staying and changing lender?

    RouteHomes England applicationDeed of PostponementMain consideration
    Stay with your current lender without borrowing moreHomes England says you do not need to contact it or applyCheck whether your lender requires oneProduct availability and lender-specific checks
    Move to a new lender without borrowing morePermission is requiredRequired so the new mortgage remains the first chargeThe new lender must accept Help to Buy remaining
    Borrow moreA separate permission process appliesMay be requiredAdditional borrowing is restricted to specified purposes

    A rate switch or product transfer can be operationally simpler than a legal remortgage, but the terms are not interchangeable and lender requirements vary.

    Can you stay with your current lender?

    Yes, potentially. Homes England’s remortgaging guidance says that if you remain with your current lender and do not borrow more, you do not need to contact Homes England or apply for permission. You should still ask the lender whether it requires a Deed of Postponement.

    The lender’s rules apply, and some changes may trigger affordability checks. We would compare the rate, fees, early repayment charge and overall cost with realistic new-lender options rather than assume staying is best.

    Can you change mortgage lender and keep Help to Buy?

    Potentially, if the new lender accepts the equity loan remaining as a second charge. Homes England’s permission is required before you change lender under the no-additional-borrowing route.

    You will normally need a mortgage offer, a redemption statement, a breakdown of lender charges and your conveyancer’s details. Homes England says the statement must be less than 12 working days old. Check with its Customer Service team if lender charges exceed £2,000.

    Help to Buy arrears must be cleared or covered by an agreed payment plan. The administration fee is currently £115, and an Authority to Proceed lasts six months. Specialist remortgage advice can help identify realistic routes before you apply.

    What is a Deed of Postponement?

    A Deed of Postponement is a legal agreement confirming that the new repayment mortgage keeps the first charge while Help to Buy remains the second. It does not repay Help to Buy. Your conveyancer handles it.

    How does the process work when you move lender?

    1. Confirm that no extra borrowing is requested. Compare the current redemption figure with the proposed new loan.
    2. Find a lender that accepts the remaining equity loan.
    3. Obtain the mortgage offer, redemption statement and fee breakdown.
    4. Instruct a conveyancer. Homes England requires their details.
    5. Apply to Homes England and pay the fee. Address any arrears first.
    6. Receive the Authority to Proceed. It is currently valid for six months.
    7. Complete the legal work. The conveyancer handles the Deed of Postponement and completion notification.

    The official no-additional-borrowing checklist does not currently list a Help to Buy-compliant RICS valuation. The mortgage lender may still arrange its own valuation.

    Can you borrow more and keep Help to Buy?

    This follows a separate process. Additional borrowing requires Homes England’s permission and is limited to specified purposes, including repaying the equity loan, approved structural alterations and funding a transfer of equity. Some arrears cases may be considered individually.

    Unrestricted equity release should not be assumed to qualify, and additional borrowing is not allowed in negative equity. If you want to increase the mortgage and remove the equity loan, read about remortgaging to pay off your Help to Buy loan.

    Will keeping Help to Buy restrict your mortgage options?

    It can. Some lenders consider it, while others require repayment of the equity loan. LTV, term, repayment and property rules differ. Help to Buy interest may affect affordability alongside the usual income, credit and property checks.

    We would check policy before rates because an affordable-looking case can still fail a lender’s shared-equity criteria.

    What happens to your Help to Buy payments?

    Remortgaging does not reset the equity loan or its interest-free period. The £1 monthly management fee and any interest due continue, but neither reduces the equity loan. The outstanding percentage remains linked to the property’s relevant market value when eventually repaid.

    What will a mortgage lender check?

    We would check the redemption figure, deal-end date, early repayment charge, proposed loan, Help to Buy percentage and interest, property value and LTV, income, credit commitments, property type and future plans.

    We would want to separate a straightforward lender switch from any request to change ownership, increase the mortgage balance or alter the property. Those changes can move the case into a different Homes England process.

    Is it better to keep Help to Buy or repay it?

    There is no universal answer. Compare the mortgage rate and fees, early repayment charge, Help to Buy costs, equity percentage, property value, mortgage term, legal costs and likely time in the property.

    Keeping Help to Buy may avoid increasing the first mortgage today, but the equity percentage remains. Repaying it removes that interest but can substantially increase the mortgage. Compare this with using a remortgage to repay Help to Buy.

    What if you cannot switch to a new lender?

    Possible reasons include lender policy, affordability, credit history, LTV, property concerns, arrears or additional borrowing. You could investigate a product transfer, address arrears or incorrect information, review the mortgage later, or consider Help to Buy repayment where affordable and permitted. None is guaranteed.

    What should you check before remortgaging with Help to Buy?

    1. Are you staying with your lender or moving?
    2. Is the mortgage balance increasing?
    3. Does the lender accept Help to Buy remaining?
    4. Is Homes England permission required?
    5. Is a Deed of Postponement required?
    6. Are your Help to Buy payments up to date?
    7. What fees and early repayment charges apply?
    8. Does the new mortgage work on affordability and LTV?
    9. How does keeping the equity loan compare with repaying it?

    We would identify the correct Homes England route, then check which lenders accept the remaining equity loan. This avoids comparing unavailable products.

    Need to remortgage while keeping Help to Buy?

    Monday Mortgages can assess staying or moving and check which lenders accept the equity loan remaining. Compare your remortgage options.

    [FAQ]

    Frequently asked questions

    Can I remortgage without paying off my Help to Buy loan?

    Potentially. The lender must accept the remaining equity loan, and moving lender requires Homes England’s permission.

    Do I need Homes England’s permission to remortgage?

    Not if you stay with your current lender without borrowing more. You need permission if you move. Your lender may still require a Deed of Postponement.

    What is a Help to Buy Deed of Postponement?

    It is a legal agreement that preserves the new mortgage lender’s first-charge priority while Homes England’s equity loan remains the second charge.

    Can I switch mortgage products with my current lender?

    Potentially. Homes England does not require an application if you stay with the same lender without borrowing more, but the lender’s rules apply and it may require a Deed of Postponement.

    Can I change lender and keep Help to Buy?

    Potentially, if the new lender accepts the structure, the mortgage is otherwise affordable and suitable, and Homes England grants permission.

    Can I borrow extra money without repaying Help to Buy?

    Only for purposes accepted under Homes England’s separate additional-borrowing process. You should not assume unrestricted equity release is permitted.

    Do I need a RICS valuation to remortgage and keep Help to Buy?

    The current no-additional-borrowing process does not list a Help to Buy-compliant RICS valuation, although the lender may arrange its own. Repayment and additional-borrowing routes have different requirements.

    Does remortgaging stop Help to Buy interest?

    No. The £1 management fee and any interest due continue while the equity loan remains outstanding.

    [/FAQ]

  • Can you release equity from a Right-to-Buy property?

    Can you release equity from a Right-to-Buy property?

    If you bought your council home through Right to Buy, you may now have a significant amount of equity in the property, particularly if you received a large discount or your home has increased in value since you bought it. It’s natural to wonder whether you can use some of that to release equity, perhaps for home improvements, to repay other borrowing or for another major expense.

    The answer is potentially yes, but releasing equity from a Right-to-Buy property isn’t always as straightforward as looking at the difference between your mortgage balance and the property’s current value. This is particularly important during the first five years after purchase, while the Right-to-Buy discount repayment rules still apply.

    In this guide, we’ll explain how equity works after a Right-to-Buy purchase, the difference between simply remortgaging and borrowing more, how the five-year discount period can affect your options, and what lenders are likely to consider if you want to raise additional money. We’ll also explain why the equity shown on paper isn’t necessarily the amount you’ll be able to access.

    [TOC]

    Can you release equity from a Right-to-Buy property?

    Potentially, yes. In this context, releasing equity means increasing borrowing secured against your home and taking some of the difference as cash.

    You might do this through a further advance from your existing lender or by moving to a new lender and increasing the mortgage balance. By contrast, a remortgage can simply mean moving lender without borrowing extra.

    When we look at a Right-to-Buy remortgage involving additional borrowing, we don’t base the assessment on the headline equity figure alone. We also look at the current mortgage balance, property value, affordability, lender criteria, the reason for borrowing and whether any restrictions or charges could affect the proposed mortgage.

    Why you can have equity from the day you buy

    Suppose your council home is worth £200,000, but you buy it for £150,000 after a £50,000 Right-to-Buy discount.

    Amount
    Market value£200,000
    Purchase price£150,000
    Mortgage£150,000
    Apparent equity£50,000

    The Right-to-Buy discount has created a £50,000 gap between the mortgage and market value. However, that doesn’t mean you could automatically remortgage to £180,000 and withdraw £30,000. During the first five years, the discount repayment rules still matter.

    What happens to your Right-to-Buy discount during the first five years?

    If you sell a Right-to-Buy home within five years of purchase, some or all of the discount will usually have to be repaid. Under the current rules:

    When you sellDiscount repayment percentage
    First year100%
    Second year80%
    Third year60%
    Fourth year40%
    Fifth year20%
    After five yearsNo normal Right-to-Buy discount repayment

    The amount repayable can also reflect the property’s value when it is sold. GOV.UK’s April 2026 Right to Buy guidance confirms both the five-year repayment period and the reducing repayment percentages above.

    Importantly, this is a sale rule. It does not show how much equity becomes available to borrow each year.

    Does 20% of the equity become available each year?

    No. This is one of the main points we’d want to clarify before assessing a case.

    The 20% annual reduction relates to the potential discount repayment liability. It is not an automatic borrowing allowance.

    Whether you can borrow more depends on the lender, affordability, current property value, existing mortgage balance and the purpose of the borrowing. During the discount repayment period, the former landlord can also retain an interest connected with repayment of the discount, so the priority of mortgage charges can matter.

    Depending on the property and proposed borrowing, your lender or conveyancer may need information or agreement from the former landlord. Some social landlords specifically use a Deed of Postponement where a lender needs new or additional borrowing to rank ahead of the landlord’s claim. We therefore wouldn’t recommend relying on a simple “market value minus mortgage” calculation during the first five years.

    Remortgaging vs borrowing more: what’s the difference?

    OptionWhat it means
    Product transferStaying with your existing lender but changing deal
    RemortgageMoving your mortgage to another lender
    Further advanceBorrowing extra from your existing lender
    Remortgage with additional borrowingMoving lender and increasing the mortgage balance
    Releasing equityUsing extra secured borrowing to access some property value

    What might lenders look at if you want to borrow more?

    Having equity is only one part of the assessment. We’d normally expect a lender to consider:

    • current property value and mortgage balance;
    • the new loan-to-value;
    • income, expenditure and affordability;
    • credit history and existing commitments;
    • the purpose of the additional borrowing;
    • property type and suitability;
    • time since the Right-to-Buy purchase; and
    • any restrictions or charges affecting the property.

    What happens after five years?

    Once the standard five-year discount repayment period has ended, that particular complication falls away. Normal lender criteria still apply, including affordability, credit history, property suitability and loan-to-value.

    The five-year rule is separate from the ten-year Right-to-Buy right-of-first-refusal rule. If you sell within ten years, you generally need to offer the property back to your former landlord or another social landlord first. Our guide to how Right to Buy works explains the wider scheme rules.

    When should you speak to a mortgage broker?

    Advice can be useful if you want to change lender, borrow more for home improvements, consolidate borrowing or understand whether waiting until after the five-year period could affect your options.

    If you bought through Right to Buy and want to remortgage your home, we can review your equity, affordability and lender criteria and explain which mortgage routes may be realistic.

    Where the answer depends on the legal terms of the original sale or the priority of charges, we may also recommend confirming the position with your former landlord or conveyancer. That way, we can assess the mortgage options without making assumptions about equity that may not actually be available to access.

    [FAQ]

    Frequently asked questions

    Can I remortgage a Right-to-Buy property?

    Potentially. Moving lender and borrowing extra are separate questions, so being able to remortgage does not necessarily mean you can also release additional equity.

    Can I borrow more on my Right-to-Buy mortgage?

    Possibly, through a further advance or a remortgage with additional borrowing. The amount available depends on lender criteria, affordability, LTV and any restrictions affecting the property.

    Can I release equity within five years of Right to Buy?

    It may be possible, but the discount repayment period can make additional borrowing more complex. We’d recommend checking both the mortgage and legal position rather than assuming the equity created by the original discount is freely available.

    Does 20% of my Right-to-Buy equity become available each year?

    No. The 20% annual reduction relates to the discount repayment liability, not an automatic allowance for additional borrowing.

    Can I remortgage after five years?

    Yes, subject to normal lender criteria. After five years, the standard Right-to-Buy discount repayment requirement no longer applies.

    [/FAQ]

  • What happens when your fixed-rate mortgage ends?

    What happens when your fixed-rate mortgage ends?

    When your fixed-rate mortgage ends, your mortgage itself doesn’t end. The fixed interest rate expires. Unless you’ve arranged another deal, you’ll normally move onto your lender’s reversion rate, often its Standard Variable Rate (SVR). Because that rate may differ from your current rate, your monthly repayments could go up or down.

    You can usually stay on the reversion rate, take another deal with your existing lender, or remortgage to another lender.

    [TOC]

    What happens at the end of a fixed-rate mortgage?

    Your mortgage balance and remaining term continue. What changes is the interest rate.

    If you haven’t arranged a new deal, your lender will normally apply its contractual reversion rate. The FCA explains that this is often an SVR, but it can be another type of rate.

    When someone’s fixed deal is ending, we’d normally start by checking the exact deal-end date, outstanding balance, remaining term, current rate and the rate the mortgage is due to move onto.

    What is a Standard Variable Rate?

    SVR stands for Standard Variable Rate. It’s a variable interest rate set by the lender, which can change over time.

    It doesn’t necessarily move directly in line with the Bank of England base rate, and it isn’t automatically the most expensive mortgage available. Some lenders use another type of reversion rate instead.

    Will your mortgage payment go up when your fixed rate ends?

    It depends on your outstanding balance, remaining term, repayment type and the difference between your current and new interest rates.

    When we review an expiring deal, one of the first things we’d do is compare the current payment with the estimated payment at the rate the mortgage could move onto. This gives a more useful picture than comparing two interest-rate percentages alone.

    You can use our mortgage rate change calculator to estimate how a different rate could affect your monthly repayments.

    What can you do when your fixed mortgage deal ends?

    Stay on your lender’s reversion rate

    You can generally remain on the reversion rate. Your payment may change and, because the rate is variable, it could change again later. You can normally still review other deals afterwards.

    Take a new deal with your existing lender

    Taking another mortgage product from the same lender is usually called a product transfer.

    A straightforward product transfer can involve a simpler process and fewer checks in some circumstances. However, you’re limited to that lender’s available products, and changing the mortgage term, repayment type or borrowing amount can change the process.

    We wouldn’t assume staying with your current lender is automatically cheaper, but we wouldn’t rule it out either.

    Remortgage to another lender

    Remortgaging means replacing your existing mortgage with one from another lender.

    The new lender will generally assess the application against its current criteria, including affordability, income, credit history, the property and loan-to-value.

    You can explore our remortgage options, or use our remortgage calculator when comparing potential repayments.

    Speak to your lender if you’re worried about the payments

    If your next payment looks unaffordable, contact your lender early. Simply speaking to your lender about payment concerns does not itself affect your credit file.

    OptionWhat it meansWhat to consider
    Reversion rate/SVRStay without arranging another productThe rate and your payments can change
    Product transferTake a new product from your current lenderPotentially simpler, but limited to that lender’s products
    RemortgageMove your mortgage to another lenderEligibility, affordability, fees and other costs need considering

    When should you start looking for your next mortgage deal?

    You don’t need to wait until your fixed rate has ended. It usually makes sense to start reviewing your position several months beforehand.

    Under the Mortgage Charter 2026, customers approaching the end of a fixed deal with participating lenders can have the opportunity to lock in a new deal up to six months ahead.

    However, six months is the maximum under the Charter, not a universal switching window. Lenders use different timeframes, commonly around three to four months in several major-lender cases. We’d check the rules for your existing mortgage rather than assume one timeframe applies to everyone.

    Can you switch before your fixed rate ends?

    Potentially, yes. The main issue is whether an early repayment charge applies.

    Depending on your mortgage terms, switching before the charge period ends can trigger a cost. Some lenders provide an early-repayment-charge-free switching window close to the end of a deal, but the rules vary.

    We’d normally check the early repayment charge first. A lower new rate doesn’t necessarily outweigh the cost of leaving the existing deal early.

    Product transfer or remortgage: what’s the difference?

    A product transfer means choosing another mortgage product from your existing lender. A remortgage means moving your mortgage to another lender.

    We’d usually compare both where appropriate rather than assume one route is better. Rates, fees, eligibility and overall mortgage costs all matter.

    What would we check when your fixed mortgage is ending?

    We wouldn’t look at the expiring rate in isolation. We’d normally check:

    • Your deal-end date, current rate and monthly payment
    • Your outstanding balance and remaining term
    • The reversion rate and any early repayment charge
    • Your estimated property value and loan-to-value
    • Changes to your income, employment, debts or credit history
    • Whether you want to borrow more, change the term or move home

    Something such as becoming self-employed, taking on new borrowing or planning to move could affect which options make sense.

    Can extending your mortgage term reduce your payments?

    Potentially. Repaying the mortgage over a longer period can reduce the amount due each month.

    However, a lower monthly payment doesn’t necessarily mean lower borrowing costs. Extending the term can mean paying interest for longer and increasing the total amount you repay.

    What happens if you do nothing?

    Your mortgage continues and normally moves onto its contractual reversion rate when the fixed period ends. Your payment may then be recalculated.

    You can generally still consider another product or lender afterwards, subject to your mortgage terms and eligibility.

    What if you’re worried about affording your next mortgage payment?

    Contact your lender early rather than waiting until payments have been missed.

    Support depends on your circumstances. For eligible customers of participating Mortgage Charter lenders, options can include temporarily moving to interest-only payments or extending the mortgage term.

    These options can reduce payments in the short term, but may increase the overall cost of the mortgage.

    How can a mortgage broker help when your fixed rate is ending?

    A mortgage broker can check your deal-end and early repayment charge position, estimate how your payment could change, compare your existing lender’s products with suitable alternatives elsewhere, and consider fees and overall costs.

    We’d also look at anything that has changed since the mortgage was arranged rather than treating the expiring interest rate as the only issue.

    [FAQ]

    Frequently asked questions

    Does a fixed-rate mortgage automatically renew?

    No. The fixed rate expires. Unless another deal has been arranged, the mortgage normally continues on its contractual reversion rate.

    Do I have to remortgage when my fixed rate ends?

    No. You may be able to stay on the reversion rate, take another product with your current lender or remortgage elsewhere.

    How early can I arrange a new mortgage rate?

    It varies by lender. Participating Mortgage Charter lenders can allow eligible customers to secure a deal up to six months ahead, but individual switching windows differ.

    What happens if my new mortgage rate is higher?

    Your monthly payment may increase depending on your balance, remaining term and repayment type. Our mortgage rate change calculator can estimate how a different interest rate could affect your repayments.

    Can I stay on the Standard Variable Rate?

    Usually, subject to your mortgage terms. Because an SVR can change, it’s worth comparing its monthly and overall costs with your other options.

    Will I pay an early repayment charge when my fixed rate ends?

    The relevant early repayment charge period will often end at or around the fixed deal-end date, but check your mortgage offer for the exact dates and terms.

    [/FAQ]

  • Can you remortgage to pay off your Help to Buy loan?

    Can you remortgage to pay off your Help to Buy loan?

    If you bought your home through Help to Buy, you may be able to remortgage for enough to repay both your existing mortgage and the Help to Buy loan. Once the redemption process completes, the Help to Buy charge can be removed and you’re left with the new mortgage secured against your property.

    The important part is working out how much you actually need to borrow. Your Help to Buy repayment isn’t simply the original cash amount you received. It’s normally based on the percentage of your home’s current market value that you still owe.

    Below, we’ll explain how that amount is calculated, what a mortgage lender will assess, how the redemption process works and what could happen to your monthly and overall borrowing costs.

    [TOC]

    Can you remortgage to pay off a Help to Buy equity loan?

    Potentially, yes.

    Before the remortgage, you effectively have two forms of borrowing secured against the property:

    • Your existing first mortgage
    • Your Help to Buy equity loan

    If you repay Help to Buy in full through a remortgage, these are effectively replaced by one larger first-charge mortgage.

    The new mortgage normally needs to cover your existing mortgage balance and the amount required to redeem Help to Buy, plus any permitted fees you choose to add to the mortgage.

    Whether you can borrow enough will depend on factors including your income, affordability, credit history, property value, mortgage balance and resulting loan-to-value.

    When we look at a Help to Buy remortgage, we’d normally start with three figures: the outstanding mortgage, the Help to Buy percentage and a realistic estimate of the property’s current value.

    How much Help to Buy do you have to repay?

    This is where Help to Buy differs from a normal fixed loan.

    Homes England calculates your repayment using the equity-loan percentage you still owe and the property’s current market value, established through an appropriate RICS valuation.

    Your repayment is based on the current property value

    Suppose you originally bought a property for £250,000 and used a 20% Help to Buy equity loan:

    • Original property price: £250,000
    • Original Help to Buy equity loan: £50,000
    • Current property value: £300,000
    • 20% of the current value: £60,000

    Your Help to Buy redemption amount would be based on approximately £60,000 rather than the original £50,000, subject to the formal valuation and redemption calculation.

    We tend to see homeowners focus on the original amount they borrowed. In practice, it’s the percentage interest that matters.

    What if your home has increased in value?

    If its qualifying market value has increased, the amount needed to redeem the same percentage can also increase.

    Homes England doesn’t simply have a £50,000 debt in the example above. It has a 20% equity interest secured against the property.

    What if your home has fallen in value?

    The reverse can also apply. If the qualifying market value has fallen, the amount represented by the outstanding percentage may be lower.

    The actual figure should always be established through the official Help to Buy redemption process rather than relying on an estate-agent estimate.

    Why do people repay Help to Buy when they remortgage?

    Help to Buy: Equity Loan has closed to new applicants in England, but homeowners who used the scheme still have an equity loan to manage and repay.

    The fifth anniversary is often when people start reviewing their position because Help to Buy interest becomes payable from the beginning of year six.

    One particularly important point is that Help to Buy interest after five years does not reduce the equity loan itself. The interest is an ongoing charge for the borrowing.

    Some homeowners therefore consider repayment because they:

    • Have reached the interest-paying period
    • Are remortgaging at the end of a fixed deal anyway
    • Want to simplify their borrowing
    • Want Homes England’s percentage interest removed
    • Have built enough equity to consider refinancing
    • Now have sufficient income to support a larger mortgage

    We wouldn’t assume that reaching year five automatically means you should repay Help to Buy. We’d look at the overall numbers first.

    What happens to your monthly costs when you repay Help to Buy?

    Repaying the equity loan removes the Help to Buy interest charge and £1 monthly management fee.

    However, it also increases the amount you’re borrowing through your main mortgage.

    Your new mortgage payment could therefore be higher, similar or potentially lower depending on the amount borrowed, mortgage rate and term.

    For example, you can use our mortgage repayment calculator to see how increasing the mortgage balance could affect your monthly payment and total interest.

    The important thing is not to treat the Help to Buy payment disappearing as an automatic saving. You’re replacing one form of borrowing with another.

    Will remortgaging to repay Help to Buy cost more overall?

    It can.

    If you add £50,000 or £60,000 to your mortgage to redeem Help to Buy, you’ll start paying mortgage interest on that additional capital.

    Extending the mortgage term could make the monthly payment look more manageable, but may increase the amount of mortgage interest you pay over time.

    Keeping Help to Buy has its own costs. Interest continues under the scheme rules, the management fee remains payable, and Homes England retains its percentage interest in the property’s value.

    We’d normally compare more than the monthly payment. We’d want to understand the additional mortgage cost, the fees involved and what keeping the equity loan would mean instead.

    How does the Help to Buy remortgage process work?

    The exact mortgage process varies by lender, but the Help to Buy redemption itself has several important stages.

    1. Check your existing mortgage and Help to Buy position

    Start with your current mortgage balance, rate, deal-end date, any early repayment charge, your outstanding Help to Buy percentage and a rough property value.

    2. Check whether the larger mortgage looks affordable

    Before spending money on formal reports, we’d normally sense-check whether the borrowing required appears realistic.

    A lender will still need to carry out its own affordability and underwriting assessment. Increasing your mortgage to repay Help to Buy isn’t simply a like-for-like remortgage.

    3. Arrange the required RICS valuation

    Homes England requires a qualifying RICS valuation to establish the property’s current market value. The valuation must meet its specific requirements.

    Importantly, this is separate from the mortgage lender’s valuation. Homes England specifically states that it can’t accept a valuation produced for bank or mortgage purposes.

    4. Establish the Help to Buy redemption amount

    Homes England uses the qualifying valuation and your outstanding equity-loan percentage to calculate the amount required.

    5. Arrange the new mortgage

    You can then proceed with the mortgage required to replace your existing mortgage and repay Help to Buy, subject to lender criteria.

    Different lenders treat these cases differently, so this is one area where we’d check current policy rather than assuming any remortgage lender can accommodate the structure.

    6. Instruct a conveyancer

    You’ll need a conveyancer to deal with the legal work involved in redeeming Help to Buy.

    7. Complete the repayment application

    Homes England’s process requires information including your conveyancer’s details and a copy of your new mortgage offer. You also need to pay the applicable administration fee.

    8. Complete the remortgage and repay Help to Buy

    On completion, the new mortgage funds are used to redeem the existing mortgage and Help to Buy equity loan. Your conveyancer handles the relevant legal transfers and the Help to Buy charge can then be removed following full repayment.

    You should continue paying any Help to Buy interest and management fees until redemption has completed.

    Do you need a solicitor to remortgage and pay off Help to Buy?

    Yes, although “conveyancer” is the more accurate general term.

    Homes England requires you to instruct a conveyancer because repaying the equity loan involves legal work and the removal of a registered charge against your property.

    This makes the process more involved than simply switching from one mortgage product to another.

    What does it cost to remortgage and repay Help to Buy?

    As of September 2026, Homes England’s administration fee for repaying an equity loan is £200.

    You may also need to allow for:

    • The RICS valuation
    • Conveyancing costs
    • Mortgage product or arrangement fees
    • A mortgage valuation fee where applicable
    • A broker fee where applicable
    • Any early repayment charge on your existing mortgage

    The £200 Help to Buy fee is therefore only one part of the potential cost.

    What will a mortgage lender check?

    Repaying Help to Buy normally means asking the lender for a larger mortgage than your existing first-charge balance.

    We’d typically want to establish your:

    • Income and employment status
    • Monthly financial commitments
    • Credit history
    • Current mortgage balance
    • Help to Buy redemption amount
    • Property value
    • New mortgage loan-to-value
    • Required mortgage term
    • Age and retirement position where relevant

    Lender criteria also differ in how Help to Buy redemption is treated. Some lenders require the equity loan to be cleared completely, while others have different criteria for partial repayment or additional borrowing.

    That’s one reason specialist remortgage advice can be useful in these cases.

    What loan-to-value could you have after repaying Help to Buy?

    Your new LTV is calculated using the whole replacement mortgage, including the money used to redeem Help to Buy.

    For example:

    • Property value: £300,000
    • Existing mortgage: £180,000
    • Help to Buy repayment: £60,000
    • New mortgage required: £240,000
    • New LTV: 80%

    Although you might currently think of yourself as having a £180,000 mortgage, the new lender is assessing a £240,000 mortgage against a £300,000 property.

    You can use our loan-to-value calculator to calculate the resulting percentage.

    Can you partially repay Help to Buy instead?

    Potentially.

    Homes England currently permits part repayment, sometimes referred to as staircasing. A part payment must normally represent at least 10% of the property’s current market value, and you can’t leave less than 5% outstanding.

    However, lender appetite for partially repaying a Help to Buy equity loan varies. Some mortgage lenders will accept an equity loan remaining in place, while others require Help to Buy to be redeemed completely.

    Can you remortgage and keep the Help to Buy loan?

    Potentially, although your mortgage options may be more restricted.

    If you’re remortgaging while keeping Help to Buy, Homes England’s requirements still apply and your chosen mortgage lender must also be willing to lend while its charge remains in place.

    Keeping the equity loan isn’t the focus of this guide, but it can be an option worth checking before assuming full repayment is necessary. Our guide to remortgaging while keeping Help to Buy explains when that route may be possible.

    What if you can’t borrow enough to repay Help to Buy?

    Not being able to redeem Help to Buy through a remortgage doesn’t necessarily mean anything has gone wrong.

    The amount available could be restricted by affordability, income, credit history, LTV, your mortgage term or lender criteria. A higher property valuation can also increase the amount required to repay the equity loan.

    Depending on your circumstances, you might instead consider retaining Help to Buy for now, making a permitted partial repayment, combining the remortgage with personal savings or reviewing the position again later.

    Is repaying Help to Buy through a remortgage worth it?

    There isn’t a universal answer.

    We wouldn’t compare the Help to Buy interest rate with a mortgage rate in isolation because they’re different types of borrowing. The Help to Buy redemption amount is also linked to your property’s value.

    Instead, we’d look at questions such as:

    • How much would Homes England require today?
    • What Help to Buy interest are you paying?
    • How much larger would your mortgage become?
    • What would the new monthly payment be?
    • What would that borrowing cost over the relevant period?
    • Are there mortgage, valuation and legal fees?
    • Is an early repayment charge due?
    • How long are you likely to keep the property?

    Once you understand those figures, you can make a more meaningful comparison between retaining the equity loan and refinancing enough to repay it.

    What should you check before starting the Help to Buy redemption process?

    Before paying for a valuation, we’d usually want a reasonably clear picture of:

    1. Your outstanding mortgage
    2. Your mortgage deal-end date
    3. Any early repayment charge
    4. The Help to Buy percentage still outstanding
    5. Your current Help to Buy interest rate
    6. A realistic property value
    7. The approximate redemption amount
    8. Your income and affordability
    9. The likely new mortgage LTV
    10. The expected mortgage, legal and valuation costs

    Once those figures are clear, you can make a much more useful comparison between keeping the equity loan and refinancing enough to repay it.

    [CTA – Large]

    If you’re considering a remortgage to repay Help to Buy, we can check how much you may need to borrow, what the resulting LTV could look like and which lenders currently accept this type of remortgage.

    [FAQ]

    Frequently asked questions

    Can I remortgage to pay off my Help to Buy equity loan?

    Potentially. Your new mortgage would need to cover your existing mortgage and the Help to Buy redemption amount while remaining within the lender’s affordability, LTV and wider criteria.

    Do I repay the original Help to Buy loan amount?

    Not necessarily. Repayment is based on the percentage of your property’s current qualifying market value that remains outstanding, rather than simply the original cash amount borrowed.

    Do I need a RICS valuation to repay Help to Buy?

    Yes. Homes England requires a qualifying RICS valuation as part of the redemption process.

    What happens after I’ve paid off my Help to Buy equity loan?

    Once full redemption and the legal process are complete, the equity loan ends and the Help to Buy charge can be removed from the property. You’ll then be left with your replacement mortgage.

    Can I pay off half of my Help to Buy loan?

    Potentially, provided the repayment meets Homes England’s minimum percentage rules. Mortgage lender criteria will also need to accommodate the remaining equity loan.

    Does Help to Buy interest pay off the loan?

    No. Your interest payments and management fee don’t reduce the equity loan itself.

    Can I remortgage after five years of Help to Buy?

    Potentially, yes. Year five is significant because interest becomes payable from the beginning of year six, but whether you can remortgage enough to redeem Help to Buy will still depend on affordability, LTV and lender criteria.

    Do I need a solicitor to repay Help to Buy?

    You’ll need a conveyancer to carry out the legal work required by the Help to Buy repayment process. A solicitor who carries out conveyancing can fulfil this role.

    How long does it take to remortgage and repay Help to Buy?

    There isn’t one standard timeframe. The process involves obtaining the required valuation, arranging the mortgage, completing Homes England’s redemption documentation and carrying out the conveyancing work. The time required will depend on how quickly each stage progresses.

    [/FAQ]

  • What is remortgaging and how does it work?

    What is remortgaging and how does it work?

    A remortgage is when you replace the mortgage on your current home with a new mortgage from a different lender. You stay in the same property, but the new mortgage is used to repay the one you already have.

    People often consider remortgaging when a fixed or introductory deal is coming to an end, although there are other reasons to switch. You might want different mortgage features, your circumstances may have changed, or you may want to borrow more against your home.

    Remortgaging doesn’t automatically mean you’ll save money. The new rate, fees, mortgage term and any charges for leaving your existing deal can all affect whether switching makes financial sense.

    [TOC]

    So what is a remortgage?

    In a standard residential remortgage, you take out a new mortgage with another lender without moving home. The money from the new mortgage repays the outstanding balance with your existing lender, and you then make your mortgage payments to the new lender.

    This is different from a product transfer, where you stay with your current lender but move onto another of its mortgage products.

    When we look at a remortgage, we’d usually start with your existing mortgage balance, the deal you’re currently on, when that deal ends and an estimate of what your property is worth. These give us a useful starting point for understanding the options available.

    Why do people remortgage?

    One of the most common reasons to explore remortgaging is that an existing fixed or discounted mortgage deal is approaching its end. Rather than automatically moving onto the lender’s reversion rate, a homeowner may want to compare other options. Our guide to what happens when your fixed rate ends explains the next steps.

    There are other reasons too. You might consider remortgaging because:

    • Your current mortgage no longer suits your circumstances.
    • You want different features or greater flexibility.
    • You want to change the mortgage term.
    • You want to change the repayment structure, where appropriate.
    • You want to increase the amount you’re borrowing.
    • You want to see whether another mortgage could reduce your costs.

    That last point isn’t guaranteed. MoneyHelper’s guidance on remortgaging recommends considering the costs of switching rather than looking only at the headline interest rate.

    How does remortgaging work?

    The exact remortgage process can vary between lenders and applications, but it will usually involve the following steps:

    1. Review your current mortgage. Check the mortgage balance, current deal and deal-end date.
    2. Estimate your property’s value. This helps you work out your approximate loan-to-value ratio.
    3. Decide how much you need to borrow. You may simply replace the existing mortgage or apply to borrow more.
    4. Review your circumstances. Income, expenditure, debts and other commitments may affect affordability.
    5. Compare your options. This can include products available from your existing lender as well as mortgages from other lenders.
    6. Apply for the new mortgage. The new lender will assess the application against its criteria.
    7. The property is valued. The lender will normally need to establish whether the property provides suitable security for the mortgage.
    8. Underwriting takes place. The lender assesses the borrowers, property and proposed mortgage.
    9. Legal work is completed. This includes arranging for the existing mortgage to be redeemed.
    10. The new mortgage completes. The new lender repays the old mortgage and your new mortgage begins.

    What will lenders check when you remortgage?

    Changing lender will normally involve the new lender assessing both your financial circumstances and the property.

    Some of the main factors a lender may consider include:

    FactorWhy it can matter
    IncomeHelps determine affordability
    Existing debtsCan reduce available borrowing
    Property valueUsed to calculate LTV
    Credit historyCan affect lender and product availability
    Extra borrowingMay change affordability and lender criteria
    Mortgage termAffects repayments and overall borrowing cost

    A lender may also look at your employment, regular expenditure, age and retirement plans where relevant, and the type and condition of the property.

    If you’re self-employed, the lender will also need to assess the income it can use for affordability. Different lenders can approach this differently.

    We’d also want to understand what’s changed since you took out your existing mortgage. A higher income could improve affordability, for example, while new loans, childcare costs or changes to your credit history could affect the options available.

    If credit is a concern, our guide to the credit score for a mortgage explains what lenders may consider.

    How does LTV affect a remortgage?

    Loan-to-value, or LTV, compares the amount you owe with the value of your property.

    For example:

    • Estimated property value: £300,000
    • Mortgage remaining: £180,000
    • Approximate LTV: 60%

    As you repay your mortgage, your LTV may fall. An increase in your property’s value could also reduce your LTV, while a decrease in value could increase it.

    LTV can affect which lenders and mortgage products are available, although a lower LTV doesn’t guarantee a particular rate or mortgage.

    Is remortgaging always cheaper?

    No. A mortgage with a lower interest rate isn’t automatically cheaper overall.

    When comparing a remortgage, costs can include:

    • The new mortgage’s product or arrangement fee.
    • An early repayment charge on your existing mortgage.
    • Account closure or exit fees where applicable.
    • Valuation costs.
    • Legal or conveyancing costs.
    • Broker fees where applicable.
    • The length of the new mortgage term.

    Cashback or fee-assisted products can also change the comparison.

    In practice, we’d usually compare the overall cost rather than simply choosing the mortgage with the lowest headline rate. How much you owe and how long you expect to keep the new mortgage can make a significant difference.

    Our remortgage calculator can help you compare how different rates, fees and mortgage terms could affect the numbers.

    Can lower monthly payments mean paying more overall?

    Yes. A lower monthly payment doesn’t necessarily mean a cheaper mortgage overall.

    For example, extending the mortgage term could reduce the amount you repay each month, but interest would then be charged over a longer period. That can increase the total amount repaid over the life of the mortgage.

    Both government Mortgage Charter guidance and the FCA highlight the potential longer-term cost of extending a mortgage term.

    Can you borrow more when remortgaging?

    You may be able to apply for additional borrowing as part of a remortgage.

    Homeowners sometimes explore this for purposes such as home improvements, buying out another owner or other significant expenditure.

    If you’re looking to borrow more, we’d also ask what the additional money is for. That’s because lender criteria can differ depending on whether you’re simply replacing the existing mortgage or increasing your borrowing, and the purpose of the extra borrowing can also matter.

    Some people consider using additional mortgage borrowing to repay unsecured debts. Doing this converts unsecured borrowing into debt secured against your home and may mean repaying it over a longer period, potentially increasing the total amount you repay.

    What’s the difference between remortgaging and a product transfer?

    A remortgage normally means replacing your existing mortgage with one from a different lender.

    A product transfer means staying with your current lender but moving onto another of its mortgage products.

    A product transfer can sometimes involve fewer checks where the borrowing and other important details aren’t changing. A remortgage, meanwhile, allows you to consider suitable products from other lenders.

    Neither is automatically the better option. The useful comparison is the overall cost, suitability and relevant lender criteria rather than simply choosing whichever process looks easiest.

    When should you start looking at remortgaging?

    It can make sense to review your mortgage before your existing deal actually ends rather than leaving it until the final few weeks.

    Under the 2026 Mortgage Charter, participating lenders may allow eligible customers approaching the end of a fixed deal to lock in a new deal up to six months ahead. Your lender can tell you when its options become available.

    That doesn’t mean every borrower can arrange any remortgage six months in advance. Timings vary between lenders and applications, and an early repayment charge may still be relevant if you’re considering leaving your existing mortgage early.

    Our mortgage rate change calculator can help you estimate how your repayments could change at a different mortgage rate.

    What if your circumstances have changed?

    Your circumstances today may be very different from when you originally took out your mortgage.

    For example, you may now be self-employed, have changed jobs, taken on new borrowing, had children, experienced changes to your income or be approaching retirement.

    We wouldn’t assume that because you qualified for your current mortgage you’ll automatically qualify for the same borrowing with another lender. We’d look at your circumstances as they are now, because different lenders can also assess the same situation differently.

    If you’ve become self-employed since taking out your mortgage, our guide to getting a mortgage when self-employed explains some of the additional considerations.

    How can a mortgage broker help with remortgaging?

    A mortgage broker can review your existing mortgage, understand how much you still owe and consider your property’s value and approximate LTV.

    They can also look at your current income and commitments, check how additional borrowing could affect the options available, compare relevant lender criteria and consider fees alongside headline rates.

    A broker can then compare suitable options from the lenders they have access to and help with the application process.

    If you’re considering changing lender, our remortgage advice service explains how we can help you review your current mortgage and explore your options.

    [FAQ]

    Frequently asked questions

    What does remortgaging mean?

    Remortgaging means replacing the mortgage on your existing home with a new mortgage from another lender. You don’t move property: the new mortgage repays the existing one and takes its place.

    Do you have to change lender to remortgage?

    In the usual consumer definition, a remortgage involves moving your mortgage to a different lender. Moving onto another mortgage product with your existing lender is generally known as a product transfer.

    Do you need a deposit to remortgage?

    You don’t normally need another cash deposit in the same way as when buying a home. Instead, lenders look at the equity in your property and the resulting loan-to-value ratio.

    Does remortgaging affect your credit score?

    Applying for a mortgage with a new lender may involve credit searches as part of the application process. The type and timing of searches can vary, so you shouldn’t assume every lender follows exactly the same process.

    Can you remortgage before your fixed rate ends?

    Potentially. However, an early repayment charge may apply if you leave your existing mortgage before the end of the deal. The costs of switching early should be compared with any potential benefit.

    Can you remortgage and borrow more money?

    Potentially, provided the additional borrowing meets the lender’s affordability, LTV and other criteria. The purpose of the extra borrowing can also affect which lenders or products are available.

    [/FAQ]