By 2030, over 104,000 Help to Buy loans will reach the end of their interest-free period, leaving many homeowners facing higher costs.
What is Help to Buy?
The scheme (2013–2023) allowed buyers of new-build homes to borrow up to 20% of the property’s value (40% in London) as an equity loan.
- Interest-free for five years.
- Repayable when selling or when the loan is cleared.
Rising Repayments
More than 101,000 loans are already interest-bearing, with the average payment around £107 per month. These costs rise over time as interest is linked to inflation (RPI).
Your Options
If your Help to Buy loan is becoming more expensive, you could:
- Remortgage to pay off the equity loan.
- Part-repay (staircase) to reduce what you owe.
- Review your mortgage deal to cut overall costs.
Why Advice Matters
Every situation is different. Speaking to a broker can help you understand your options and avoid unnecessary costs.
At MortgagePal, I help clients in Cramlington, North Tyneside, and across the UK manage Help to Buy repayments and secure the right mortgage deal.
Your home may be repossessed if you do not keep up repayments on your mortgage.
