The Help to Buy equity loan scheme ran from 2013 to 2023 and was widely used across Basingstoke. New build developments at Chineham, Brighton Hill, Lychpit and Popley saw thousands of buyers use the scheme — typically borrowing 20% of the purchase price from the government, interest-free for five years, with a standard mortgage covering the remaining 75%.
Those five years are now expiring for buyers who purchased between 2016 and 2021. From month 61, Homes England begins charging a monthly management fee of 1.75% of the outstanding equity loan value, rising each April by CPI inflation plus 2%. This fee compounds year on year and is separate from your main mortgage payment. It does not reduce the equity loan balance — it is a pure additional cost.
If your Help to Buy purchase completed between 2016 and 2021, your fee-free period may already have started or be imminent. The monthly fee is unavoidable once it begins — but whether you redeem the equity loan or remortgage on better terms is a decision we can help you make before it costs more than it should.
Redeem vs Retain: The Two Options
| Option | What It Means |
|---|---|
| Redeem the equity loan | Repay Homes England in full using a larger remortgage or savings. Ends the monthly fee permanently. The redemption figure is the same percentage of your current property value as the original loan percentage — not the original loan amount. |
| Retain the equity loan | Keep the equity loan in place and remortgage only your main mortgage. Monthly fee continues and rises annually. May be the right choice if redemption would push your LTV to an uncompetitive rate tier. |
How the Redemption Figure Is Calculated
This is where Basingstoke homeowners are often surprised. The Help to Buy equity loan redemption is calculated as the same percentage of the current property value as the original loan percentage — not the original loan amount. If you borrowed 20% of a 300,000 pound purchase price (60,000 pounds), and your property is now worth 360,000 pounds, the redemption figure is 20% of 360,000 — which is 72,000 pounds, not 60,000.
For buyers on Chineham and Brighton Hill developments where property values have risen materially since 2018 to 2020, this difference can be significant. We calculate your specific redemption figure using a current market valuation before recommending which route to take.
A buyer purchased on the Chineham development in 2019 at 290,000 pounds using 20% Help to Buy (58,000 pounds). Property now valued at 340,000 pounds. Redemption figure: 20% of 340,000 = 68,000 pounds. Main mortgage outstanding: 195,000 pounds. Total new mortgage needed to redeem: 263,000 pounds at 77% LTV — within competitive rate tiers and eliminating the rising monthly fee permanently.
The Remortgage Process with Help to Buy
Free assessment
We calculate your estimated redemption figure, model redeem versus retain, and confirm your maximum borrowing with specialist lenders. Same-day in most cases.
RICS valuation
Homes England requires a valuation by a RICS-approved surveyor. We guide you through this step and ensure the surveyor is on the Homes England approved list for Basingstoke.
Redemption authority from Homes England
Homes England issues a redemption statement confirming the exact repayment figure. Your solicitor coordinates this. Allow 4 to 6 weeks for Homes England to respond.
Remortgage completion
New mortgage completes, solicitor repays Homes England from the proceeds, equity loan is discharged. You are left with one mortgage, no monthly fee, no equity loan.