According to a Freedom of Information (FOI) request sent by this publication to Homes England, there are currently around 101,807 Help to Buy accounts that are interest-bearing and have come to the end of the interest-free period.
An additional 104,337 accounts are due to repay the Help to Buy loan in the next four years, with the average amount of interest payable on a Help to Buy equity loan estimated at around £107 per calendar month, according to Homes England.
| Year | Number of accounts |
| 2025 | 35,464 |
| 2026 | 38,242 |
| 2027 | 27,301 |
| 2028 | 3,330 |
| Total | 104,337 |
That’s an additional £1,284 per year that Help to Buy borrowers could have to repay, on top of heightened mortgage costs, which have increased significantly since 2020.
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Help to Buy was a scheme that ran from 2013 until 2023 to help buyers purchase new-build properties, for which the Government offered an equity loan for up to 20% of the value of a property or up to 40% in London that is repayable when the property is sold.
From 2013 to 2023, there were 387,195 properties bought with the equity loan, and 328,346 were bought by first-time buyers.
Stephanie Charman, chair of the Association of Mortgage Intermediaries (AMI), said: “That Help to Buy scheme supported over 387,000 households get on the property ladder by the time the scheme ended in spring 2023.
“Thousands of first-time buyers who have used the Help to Buy Equity Loan scheme are now entering the repayment phase, facing new financial pressure many hadn’t fully anticipated. After five years interest-free, borrowers must now begin paying interest on the Government’s loan. For a £40,000 loan, that’s an extra £700-plus a year in costs, before any mortgage payments.
“At the same time, mortgage rates have risen sharply. Average monthly repayments have increased by over £300 in the past five years, putting strain on budgets already stretched by the cost of living. Many of these borrowers are often balancing family life and rising household expenses,” she explained.
Charman said many homeowners are juggling young families, rising living costs, and growing financial responsibilities.
“This is where professional advice is essential and crucial conversations around protection are often overlooked but can make a meaningful difference.
“Today’s mortgage advisers play a broader role than ever – acting as financial coaches, helping clients manage debt, plan ahead, and protect their financial wellbeing.
“Many consumers won’t be aware they have options: from remortgaging to part or early equity loan repayment. With the right advice, homeowners can navigate this complex financial landscape with greater clarity and confidence,” she said.
Combination of new-build depreciation and tighter affordability could make remortgage challenging
Nick Jones, mortgage sales and marketing director at Access FS, said there will be a higher number of accounts becoming interest-bearing in 2026 as it was five years after the peak of Help to Buy, and fewer in following years as the scheme tailed off.
He said: “Theoretically, new-build homes, common in Help to Buy, can be subject to initial depreciation. This, combined with the increases in rates and tighter affordability, makes remortgaging difficult for some borrowers.
“While Access FS hasn’t seen too many customers struggling with Help to Buy at remortgage, my recommendation remains that anyone who needs help should consult a mortgage broker.”
Noord Romjon, director at New Homes Mortgage Broker, said it had seen a “large number of customers” who used the Help to Buy scheme and are approaching the end of their five-year interest-free period.
He said: “This transition is proving to be a financial shock for many, particularly those in London who took advantage of the full 40% equity loan and purchased at the maximum price of £600,000.
“These borrowers, already facing significantly higher mortgage payments due to the end of low fixed rate deals, are now also contending with Help to Buy interest payments that can reach up to £350 per month. The combined impact can amount to a substantial increase in monthly outgoings,” he said.
Romjon continued on to say that this may not be the case for everyone, as some “forward-thinking customers” have prepared for this moment by making regular overpayments, investing and building savings.
He said he had recently reviewed a case where a customer had nearly halved their mortgage over five years and is now using savings and capital raising to repay the Help to Buy loan in full.
“It’s remarkable to reflect that just a few years ago, someone could purchase a £600,000 property with a 5% deposit and pay as little as £1,100 per month on their mortgage, something that seems almost unimaginable today.
“Interestingly, in some areas of London, we’re now seeing customers repay their Help to Buy loan at a lower amount than they originally borrowed due to lower valuations in the area,” Romjon noted.
Help to Buy remortgagors have options but need advice
Adam Wells, mortgage adviser at Bristol Rose Mortgages, said the figures highlighted a “significant moment for many homeowners”.
He said it really underscored the “need for people to start thinking proactively about their options, as this change could certainly come as a surprise to some”.
Wells continued on to say that he was “absolutely” seeing more customers with Help to Buy concerns.
“As these interest-free periods draw to a close, more and more people are reaching out, looking for guidance. The good news is there are several pathways available: from selling their home and repaying the loan that way, to exploring remortgaging options that could consolidate their Help to Buy loan into a single, more manageable mortgage, or even making overpayments if that’s an option for them.
“With money being tight for so many families right now, I’d always suggest speaking with a mortgage broker. We can provide comprehensive advice tailored to individual circumstances, which a current mortgage provider might not be able to offer.
“Ultimately, if we can help homeowners reduce their monthly payments or minimise the overall interest they pay, especially as these loans transition, that’s got to be a positive outcome for everyone involved,” he said.
Paul Johnson, company director at Premier Property Solutions, said when clients came to him with concerns around Help to Buy, the first thing was to look at their mortgage scenario and whether Help to Buy could be consolidated and paid off.
“In some cases, this works, as it also allows us to remodel the mortgage term. Other cases, that isn’t affordable, so the alternative is to extend the mortgage term while paying the interest of the Help to Buy to bring down overall monthly outgoings.
“What I am finding at the moment is many clients who have Help to Buy don’t know how much interest is due when it kicks in, and a lack of information from Help to Buy, so some customer[s] shave the shock of a new direct debit coming out. Help to Buy seem to be not very responsive and difficult to get hold of. Paying off Help to Buy can take months,” he said.
As an example, he said that in one case where they were trying to clear a Help to Buy as part of a remortgage, it took five months, and Homes England’s response times were “poor”, adding that they could be waiting 10 days before a reply in some cases.
Tom Andrews, director at Salcey Mortgages, said that with higher mortgage rates, “one eye should firmly be kept on what the total combined payment of their mortgage and Help to Buy loan could look like when their current mortgage deal ends”.
“This is particularly important to anyone who took a five-year (or longer) deal initially and will likely still be on lower rates [than] what is available currently. We have seen some clients opt to repay their Help to Buy loan, as though the overall monthly payment has increased, they take comfort in knowing they are not just ‘paying the interest’ on their Help to Buy loan.
“Regardless of whether the Help to Buy loan has been repaid, some clients have taken longer mortgage terms to offset the higher cost of borrowing and/or the Help to Buy interest,” he said.
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Exclusive: Over 104,000 Help to Buy accounts set to come to end of interest-free period by 2030
