Remortgaging while you still have a Help to Buy equity loan is usually possible with adverse credit, although two things sit on top of the normal checks. Your Help to Buy administrator generally needs to agree to the remortgage, and fewer lenders offer mortgages alongside an equity loan in the first place. Adverse credit narrows that smaller field further, but it does not rule it out.
This page covers the England Help to Buy equity loan scheme: how the administrator fits into a remortgage, what happens to the interest fee and repayment amount, and how bad credit is weighed on top. It does not cover Wales or Scotland, which ran different schemes. If you are struggling with payments, free help is available from MoneyHelper, StepChange and National Debtline.
On this page
In short
- Your Help to Buy administrator usually needs to agree before you remortgage, whether you are switching lender or repaying the loan.
- The equity loan is interest free for the first 5 years, then an interest fee applies and typically rises each year.
- Repaying the loan is based on its percentage share of your home’s current market value, not what you originally borrowed.
- Fewer lenders offer mortgages alongside a Help to Buy loan, and adverse credit narrows that field further.
Can you remortgage with a Help to Buy equity loan and bad credit?
Yes, it is usually possible, whether you want a new deal on your main mortgage while keeping the equity loan, or you want to remortgage to repay some or all of it. Lenders assess your credit history in the same way as any remortgage: how recent and serious the problems are, whether they are settled, and how they sit alongside your income and equity.
What makes Help to Buy different is the equity loan itself. A separate legal charge sits behind your mortgage, your administrator has an interest in what happens to it, and fewer lenders are set up to lend alongside it at all. That narrower field of lenders is what adverse credit then narrows further.
Does your Help to Buy administrator need to agree?
Usually, yes. Your Help to Buy administrator (Homes England or a Help to Buy agent, depending on the region) generally needs to give permission before you remortgage, because its equity loan is secured against your home behind your main mortgage. This applies whether you are simply switching lender, borrowing more, or using the remortgage to repay the equity loan in part or in full.
Administrators handle requests in their own way and in their own timescale, often through an online portal, and may ask for a redemption or valuation statement first. Build extra time into your plans, particularly if your current deal is close to ending, and start the conversation with your administrator early.
- Your Help to Buy agreement and the equity loan percentage
- Any correspondence with your administrator about redemption or consent
- Your current mortgage deal end date, so you know your timescale
What happens to the interest fee and how is the loan repaid?
A Help to Buy equity loan is interest free for the first 5 years. From year 6 an interest fee applies and typically rises each year after that, so many homeowners look to repay some or all of the loan around this point, alongside or instead of a straightforward remortgage. We do not quote the fee amount here, as it is set out in your own agreement and can change.
| Stage | What it means for a remortgage |
|---|---|
| Years 1 to 5 | Interest free, but your administrator still generally needs to agree any remortgage |
| Year 6 onwards | An interest fee applies and typically rises each year, so repaying can reduce ongoing cost |
| Staircasing | Buying more of the equity share, which can be done alongside or separately from a remortgage |
| Full repayment | The amount due is based on the loan’s percentage share of the home’s current market value |
General descriptions only. Check your own agreement and administrator for exact terms and current figures.
A current valuation, usually a RICS valuation, sets the market value used to work out how much you owe. Because the amount is a percentage of value rather than a fixed sum, it moves with house prices, up or down, between when you bought and when you repay.
How does bad credit affect a Help to Buy remortgage?
Bad credit is assessed the same way as on any remortgage: lenders look at what is on your file, how recent it is, and whether it is paid or settled. Our pages on remortgaging with a CCJ, defaults and missed payments explain how each is usually weighed.
Because fewer lenders offer mortgages alongside a Help to Buy loan in the first place, adverse credit can narrow the choice more sharply than it would on a standard remortgage. If you are repaying the equity loan in full as part of the remortgage, your new mortgage is assessed like any other, without the equity loan complication, which can widen your options again.
A lower loan to value generally widens options with bad credit, and our guide on how LTV affects a bad credit remortgage explains the bands lenders tend to use.
Can you remortgage to help repay a Help to Buy loan?
Some homeowners remortgage specifically to raise the money to repay their Help to Buy loan, either in full or through partial staircasing. This means increasing your main mortgage borrowing, so a lender will assess the higher amount for affordability in the usual way, and adverse credit is weighed as it would be for any extra borrowing.
Our page on releasing equity with bad credit explains how lenders set the amount you can raise. If you are also weighing up consolidating other debts at the same time, read the risks first.
If you use extra borrowing to clear unsecured debts as well as your Help to Buy loan, those debts become secured on your home, and your home may be repossessed if you do not keep up repayments. Free advice from StepChange or National Debtline can help you weigh this up.
What if a Help to Buy remortgage is not straightforward?
If a new lender is not available or the equity loan makes things complicated, other routes may be worth comparing.
- A product transfer with your current lender, which may still need your administrator’s agreement
- Waiting until older credit problems are further behind you before applying
- Getting a redemption statement now, even if you are not ready to repay, so you know the figures
- Speaking to a broker who has experience with Help to Buy and adverse credit
- Getting free advice from MoneyHelper if repayments generally feel like a struggle
What may affect a Help to Buy remortgage with bad credit
| Factor | Why it matters |
|---|---|
| Administrator agreement | Your Help to Buy administrator generally needs to agree before the remortgage can complete. |
| Whether the loan is repaid or kept | Repaying it in full can widen lender choice; keeping it in place narrows the field. |
| Interest fee stage | Whether you are still in the first 5 interest-free years or paying the fee affects your reasons for remortgaging. |
| Current property valuation | Sets both your loan to value and the amount due if you repay the equity loan. |
| Type and age of credit issues | Recent or unresolved problems narrow an already smaller pool of Help to Buy lenders. |
| Mortgage payment history | A clean recent record on your existing mortgage generally helps. |
| Equity and loan to value | A lower LTV on the main mortgage generally widens options. |
| Purpose of the borrowing | Repaying the equity loan is treated as extra borrowing, assessed for affordability like any other. |
| Income and affordability | Lenders check your income and outgoings and stress test any higher payment. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- Your Help to Buy completion date, region and the equity loan percentage
- A recent redemption or valuation statement, if you have one
- Contact details for your Help to Buy administrator and any correspondence so far
- Your current mortgage balance, deal end date and any early repayment charges
- Your credit reports from Experian, Equifax and TransUnion
- Details of any CCJs, defaults, missed payments or arrears, with dates
- Proof of income and a summary of your regular outgoings
Specific situations
More detail for particular circumstances.
Remortgaging to pay off your Help to Buy equity loan
The steps involved in remortgaging to repay a Help to Buy equity loan in full, including the redemption statement, valuation and how bad credit is assessed against the higher amount.
Frequently asked questions
Can I remortgage while I still have a Help to Buy loan?
Yes, it is usually possible. Your Help to Buy administrator generally needs to agree, and fewer lenders offer mortgages alongside an equity loan, so choice is narrower than for a standard remortgage. Adverse credit narrows it further, but does not rule it out.
Do I need permission from Help to Buy to remortgage?
Usually, yes. Because the equity loan is secured behind your main mortgage, your administrator generally needs to agree before a new lender can complete. This applies whether you are switching lender, borrowing more or repaying the equity loan.
How much will I need to repay if I remortgage to clear my Help to Buy loan?
The amount is based on the equity loan’s percentage share of your home’s current market value, set by a valuation at the time, not what you originally borrowed. Ask your administrator for a redemption statement to get an up-to-date figure before you apply.
Will bad credit stop me remortgaging with a Help to Buy loan?
Not necessarily, but it can narrow an already smaller field of lenders willing to consider Help to Buy cases. If you are repaying the loan in full, your new mortgage is assessed without that complication, which can open up more options.
Can I remortgage to pay off part of my Help to Buy loan?
This is called staircasing, and it can often be done alongside or separately from a remortgage. You buy an extra share of the equity loan using a current valuation, so check with your administrator how the process and any fees work.
What if my Help to Buy administrator is slow to respond?
Build extra time into your plans and start the request early, ideally as soon as you begin thinking about a remortgage. If your current deal is close to ending, tell your adviser so they can factor in the administrator’s timescale.