When it’s time to repay your Help to Buy loan, knowing exactly what to do can save you stress, time, and money. The process may appear complicated at first, but once you understand the steps, it becomes far easier to manage.
Repaying your equity loan is a key moment in your homeownership journey because it determines how much of your property you truly own. Keep reading to understand each stage of the Help to Buy repayment process and how to handle it with confidence.
Understanding How Repayment Works
Your Help to Buy loan is tied to the current market value of your property, not the original purchase price. This means that if your home’s value has increased since you bought it, your repayment amount will rise too. Repayments can be made in full or partially through a process known as “staircasing.”
Understanding the Help to Buy loan repayment process is essential before taking any action as it involves valuation, legal verification, and coordination between your lender and solicitor. For expert help through every legal step, SAM Conveyancing provides trusted support to ensure your repayment is completed accurately and without unnecessary delay.
Start With a RICS Valuation
Your first step is to get a RICS valuation, which establishes your home’s current market value. This independent report must be carried out by a qualified RICS surveyor, and it’s valid for three months. The valuation ensures your repayment amount reflects real market conditions rather than estimates or online figures.
Act quickly once the valuation is complete. If it expires before repayment is finalised, you’ll need an updated report, which could slightly change the amount you owe depending on property market shifts. Having your solicitor and mortgage lender ready beforehand helps you progress smoothly once the valuation arrives.
Notify Homes England of Your Intention to Repay
After receiving the valuation, you’ll need to inform Homes England (or their appointed agent) that you intend to repay your equity loan. They’ll confirm your repayment figure and provide specific instructions for your solicitor to follow.
Your solicitor then handles the legal aspects, including sending the valuation report, verifying repayment details, and arranging the transfer of funds. If you’re remortgaging, your solicitor coordinates with your new lender to ensure funds are released and applied correctly.
Arrange the Funds for Repayment
How you fund your repayment depends on your situation. If you’re selling your home, repayment is settled from the sale proceeds. If you’re staying in the property, most homeowners choose to remortgage to release enough funds to clear the loan.
It’s important to plan early since lenders require up-to-date valuations and legal documents before approving funds. Your solicitor will ensure the repayment amount matches the final statement from Homes England and confirm the transfer once all parties agree on the figures.
Finalise the Repayment and Remove the Charge
Once the payment has been made, Homes England issues a confirmation letter confirming the loan is cleared. Your solicitor will then arrange to remove Homes England’s charge from the property’s title, officially transferring full ownership to you.
If you’ve made a partial repayment, your solicitor will update the records to reflect the reduced equity share. You’ll then be free to repay the remaining balance at a later stage, using another valuation when you’re ready.
Staying Organised for a Smooth Process
Staying organised makes the entire process easier. Keep digital copies of your valuation, repayment forms, and solicitor correspondence. Since valuations expire in three months, it’s wise to act promptly and maintain regular communication with your solicitor and lender.
A clear plan helps you avoid repeated valuations, unexpected costs, or administrative delays.
Reaching Full Ownership with Confidence
Repaying your Help to Buy loan is more than just a financial transaction. It’s a major milestone in your journey as a homeowner and a step toward financial independence. By staying informed, acting quickly, and working with a professional solicitor, you’ll complete repayment efficiently and with peace of mind.
With expert guidance and careful planning, you’ll soon enjoy the satisfaction of owning your home outright and moving forward with true financial freedom.
