Remortgaging to Pay Off Help to Buy
Remortgaging is the most common way to pay off your Help to Buy loan without needing to sell. You use the increase in the property's value from when you bought it to when you remortgage to pay off the loan. Whether you are staircasing to partially pay it off or paying it off in full, we cover every step of the process below.
We are specialists in Help to Buy repayments with a national panel of RICS surveyors and Help to Buy solicitors, so if you have a question, please get in contact, and we'll gladly help; no question is too much.
How does remortgaging to pay off Help to Buy work?
When you take out a standard remortgage, you are simply replacing your existing mortgage with a new one of the exact same size. However, remortgaging to pay off your Help to Buy equity loan involves a specific lending process known as capital raising.
You are asking a mortgage lender to increase your total borrowing to cover both your existing mortgage balance and the cash sum to pay off the Homes England loan. Upon completion, your conveyancing solicitor will receive the new, larger mortgage advance, pay off your original mortgage, and transfer the balance to Homes England to clear the equity loan.
Because you are increasing your overall debt, lenders will strictly assess your application based on two key factors:
- Loan-to-Value (LTV): Most lenders cap capital raising for Help to Buy redemptions at around 85% to 90% LTV. This means you must have built up enough personal equity in the property (through your original deposit, monthly mortgage repayments, or house price growth) to satisfy the lender's risk criteria.
- Affordability Stress Testing: The lender will scrutinise your income and outgoings to ensure you can afford the higher monthly repayments, especially given that your new mortgage balance will be significantly larger than your first one.
Further Advance vs. Remortgaging: Which is better?
To raise the capital needed to repay Homes England, you have two distinct borrowing options. The right choice depends entirely on your current mortgage deal and how quickly you need to complete the transaction.
1. Getting a Further Advance (Staying with your current lender)
A further advance involves asking your existing mortgage provider to lend you the extra money required to pay off the equity loan, rather than switching to a completely new bank.
- The Pros: It is generally faster than a full remortgage because the lender already holds the primary charge on your home. Crucially, if you are currently locked into a fixed-rate mortgage deal, taking a further advance allows you to avoid paying hefty Early Repayment Charges (ERCs) because you are not leaving the lender.
- The Cons: The extra borrowing is treated as a separate loan part. You will end up with two different mortgage rates running side by side (your original mortgage rate and the rate for the additional advance), which can complicate your finances. You are also restricted to whatever interest rates your current lender is offering.
2. A Full Remortgage (Switching to a new lender)
This involves moving your entire debt to a completely new mortgage provider. The new lender provides a single loan large enough to pay off both your old mortgage and the Help to Buy charge.
- The Pros: You consolidate everything into one clean, manageable monthly payment. By searching the whole market, you can secure the most competitive interest rate available, rather than being tied to your current bank's rates.
- The Cons: The administrative and legal conveyancing process takes longer. Additionally, if your current mortgage is still within its fixed penalty period, the Early Repayment Charges for leaving your existing lender could heavily outweigh the savings of the new rate.
The timing trap: Coordinating your mortgage offer and RICS valuation
Remortgaging to clear your equity loan involves juggling two entirely separate financial deadlines: your new lender's mortgage offer and Homes England's valuation. Getting these two timelines out of sync is the number one reason Help to Buy remortgages fall through or face costly delays.
The conflict arises from the strict validity periods of your paperwork:
- The RICS Valuation: Is strictly valid for only 3 months. Furthermore, it must be submitted to Homes England as a PDF within 5 working days of being issued.
- The Mortgage Offer: Securing a remortgage (including underwriting and affordability checks) can take 4 to 8 weeks, though the formal offer itself is usually valid for up to 6 months once issued. A further advance can often be secured a lot faster than a completely new mortgage.
The Common Mistake
Many homeowners instruct their RICS surveyor on day one, before they have even applied for their remortgage. If the mortgage underwriting process takes 6 weeks, and the legal conveyancing takes another 6 weeks, the RICS valuation will expire just as the solicitor is ready to complete. Homes England will then refuse to issue the Authority to Complete.
The Optimal Timeline
To ensure a smooth, stress-free conveyancing process, you should follow this exact sequence:
- Apply for your remortgage: Work with a broker or apply directly to your chosen lender first.
- Wait for approval: Wait until your formal mortgage offer has been officially issued (or you have written confirmation it is imminent).
- Instruct your RICS surveyor: Now that your funding is secure, pay for your Homes England-compliant RICS valuation.
- Submit and Instruct: As soon as the valuation report is issued, send it to Homes England and formally instruct your Help to Buy conveyancing solicitor to begin the legal work.
Expert Tip: Missed the deadline? You have a 2-week safety net
If your remortgage is delayed by the lender and your RICS valuation expires, Homes England offers a strict contingency plan. You have a two-week window from the exact date of expiration to request a 'Desktop Valuation' from your original surveyor.
This desktop extension is significantly cheaper than a physical survey and extends your valuation for a further 3 months. However, if you miss this strict two-week window, Homes England will reject the extension, and you will be forced to pay for a brand-new physical inspection to complete your remortgage.
CEO & Managing Director
What are the conveyancing costs for a Help to Buy remortgage?
When budgeting for your Help to Buy remortgage, it is important to understand that the costs are split into three distinct categories: your RICS valuation, Homes England's administrative fees, and your conveyancing solicitor's legal fees and disbursements.
1. The RICS Valuation
You must pay for a physical inspection by a Homes England-compliant surveyor (MRICS or FRICS). We offer fixed-fee valuations starting from £250 EXC VAT, depending on your property's location and size.
2. Homes England Administration Fee
Homes England charges a mandatory, non-refundable £200 administration fee to process your remortgage application and issue the necessary legal paperwork. You pay this directly to them when you submit your application.
3. Conveyancing Legal Fees & Disbursements
Your solicitor will charge a fixed fee for the legal work, plus 'disbursements' (essential third-party costs they pay on your behalf). Our legal fee for a Help to Buy remortgage is INC VAT. The standard disbursements you can expect include:
Description | Estimated Cost |
|---|---|
Land Registration Fee | £20 - £140 |
Local Authority Search Indemnity | £50 - £120 |
Online ID & Anti-Money Laundering Checks | £18 - £50 INC VAT (per person) |
Online Mortgage Portal Fee | £12 INC VAT |
Expert Tip: Free legals may not work here
Some mortgage lenders offer free legal services as part of their mortgage product. The problem is that the solicitor firm only handles the remortgage work for free, and will charge for handling the Help to Buy repayment; some don't even offer this extra service.
This can leave you with the issue of having two solicitors handling the legal work: the free legals looking after the remortgage, and a specialist Help to Buy solicitor handling the repayment of the loan. This can get messy, and there are often additional legal fees payable to get both solicitors to work together.
In our experience, it is simpler and easier to work with one solicitor for the remortgage and Help to Buy repayment.
Partner & Conveyancing Solicitor
Step-by-step Help to Buy remortgage process
Because you are dealing with two separate lenders (Homes England and your new bank), the legal process is more complex than a standard remortgage. Here is the exact path to completion:
Secure your new mortgage offer
Work with your mortgage broker or lender to pass the affordability checks and secure your formal mortgage offer. Remember, do not instruct your surveyor until this offer is approved or imminent.
Instruct your RICS Valuer and Solicitor
Once your funding is secure, instruct your Homes England-compliant RICS surveyor to visit the property. On the exact same day, instruct your Help to Buy conveyancing solicitor so they can begin the initial anti-money laundering checks and open your file.
Apply to Homes England
As soon as you receive your valuation report, you must complete the Help to Buy remortgage Application Form, attach your RICS valuation and new mortgage offer, and pay your £200 admin fee directly to Homes England.
Redemption Statements
Your solicitor will request a formal 'Redemption Statement' from your current mortgage lender to find out exactly how much you still owe them. Simultaneously, Homes England will review your application and issue a redemption letter to your solicitor confirming their final percentage cut.
Authority to Complete and Legal Undertakings
Your solicitor will review the terms of your new mortgage, sign a legal undertaking promising Homes England they will be paid, and request the 'Authority to Complete' from the Help to Buy Administrator. You will also sign your new mortgage deed.
Drawdown and Completion
On completion day, your solicitor will draw down the funds from your new mortgage lender. They will use this money to first pay off your existing mortgage in full, and then immediately wire the remaining required funds to Homes England to clear the equity loan.
Post-Completion (Land Registry)
With the debts settled, your solicitor will apply to HM Land Registry to officially remove both your old mortgage lender and Homes England's legal charge from your property title, replacing them with your new mortgage lender. The update at the Land Registry can take several months.
Remortgaging to pay off the Help to Buy calculator
If you are looking to work out how large a mortgage you need to pay off your equity loan, then use our free online Help to Buy Repayment Calculator.
Our panel of specialist Help to Buy remortgage solicitors sit on 99% of mortgage lender panels, meaning we can act for you and your new bank simultaneously without delay. We can completely finalise the paperwork so you can enjoy your home outright.
Andrew Boast FMAAT is a qualified accountant, conveyancing specialist and author with over 25 years of experience in the UK property sector. Since beginning his career in 2000 within established SRA and CLC-regulated conveyancing solicitor firms, Andrew has overseen the legal journeys of more than 75,000 clients.
He is the self-published author of the first-time buyer guide: How to Buy a House Without Killing Anyone, and a frequent contributor to mainstream UK media on legislative updates, property law, first-time buyer guides, conveyancing best practices, and stamp duty changes. Andrew specialises in resolving complex title issues, property conflict disputes, and property tax options, streamlining the enquiry process to reduce transaction times and maintaining a client-friendly focus.
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