When you sell a home bought with a Help to Buy: Equity Loan in England, you repay the same percentage of its value that you borrowed, based on a RICS valuation or the sale price, whichever is higher, and the repayment comes out of the sale money on completion. So if the loan was 20% of the price when you bought, you repay 20% of what the home is worth when you sell, plus any interest or fees owed.
That rule has one big consequence for anyone thinking of a quick sale: accepting less than the valuation does not reduce what you owe on the equity loan. This guide explains how the repayment works, the valuation you need, the steps and fees, and how the schemes in Wales and Scotland differ.
How much do you repay when you sell?
GOV.UK says that when you sell, you pay the equity loan percentage of the market value, or of the agreed sale price if it is higher. The market value is the figure in a compliant RICS valuation report.
GOV.UK’s repayment guide gives a simple example. You bought a home for £100,000 with a 10% equity loan. It is now worth £110,000. You would repay £11,000 (10% of £110,000), plus any unpaid fees.
What you owe on top depends on how long you have had the loan. GOV.UK explains that there is no interest for the first 5 years. In the sixth year, interest is charged at 1.75%, and it rises every April by the Consumer Price Index plus 2%. There is also a monthly management fee of £1 until the loan is repaid. Any arrears must be cleared as part of the repayment.
Your main mortgage comes first. The equity loan is secured as a second charge behind your mortgage lender, so on completion your solicitor pays off the mortgage and the equity loan from the sale money, and you receive what is left.
Why does the RICS valuation matter so much?
Because it usually sets the repayment figure. GOV.UK’s valuation guidance says:
- the surveyor must be RICS qualified and registered, independent of any estate agent, and not related or known to you
- the report must include at least 3 comparable properties sold within the last 12 months
- the report is valid for 3 months from the date it was produced
- if it is about to expire, a desktop valuation can extend it by 3 months, using at least 6 comparable sales from the last year
- you choose, arrange and pay for the surveyor yourself
- the report can be rejected if it does not follow the criteria or is too high or low compared with similar homes, and you would then need a new one
Time the valuation carefully. If your sale is likely to take a while, a report ordered too early may expire before you are ready to redeem.
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What if you sell for less than market value?
This is the part many sellers miss. The repayment is based on the market value in the RICS report or the sale price, whichever is higher. If you accept a price below the valuation, you still repay the loan percentage of the valuation.
An illustration, using round numbers only. Your home has a RICS valuation of £200,000 and your equity loan is 20%.
| Sale at valuation | Sale below valuation | |
|---|---|---|
| Sale price | £200,000 | £170,000 |
| Equity loan repayment (20% of the higher figure) | £40,000 | £40,000 |
| Left for your mortgage, costs and you | £160,000 | £130,000 |
The whole £30,000 difference comes out of your side. That does not rule out a quick sale, but it does mean you should work out your figures first: your mortgage redemption amount, the equity loan repayment, interest, fees and legal costs, against any offer. A quick sale to a cash buyer usually means accepting less than full market value in return for speed and certainty, and with Help to Buy that trade-off lands entirely on your share. Our guide to how much cash buyers pay explains how to judge an offer.
What are the steps to repay when you sell?
GOV.UK sets out the process for repaying on a sale:
- Get a RICS valuation that meets the criteria.
- Instruct a solicitor or conveyancer for the sale.
- Complete the repayment application form and send it with the valuation and, if you have one, the memorandum of sale.
- Pay the £200 administration fee and clear any arrears.
- Receive a redemption letter setting out what you owe.
- Your solicitor provides a legal undertaking.
- You receive an Authority to Complete, which GOV.UK says is issued within 5 days of receiving the undertaking.
- Your solicitor transfers the funds on completion.
If the sale proceeds do not cover the total due, GOV.UK says you will need to make an additional payment. Our guide to selling a house with a mortgage explains how the main mortgage is redeemed alongside, and our list of the documents you need to sell covers the rest of the paperwork.
Who do you deal with?
The equity loan is provided by Homes England. GOV.UK directs customers to the Help to Buy customer service team, by email at customerservices@myhelptobuyloan.co.uk, by phone on 0300 123 4123, or by post to PO Box 5262, Lancing, BN99 9HE. You can no longer apply for a new equity loan in England, but GOV.UK’s guidance on managing and repaying existing loans still applies. Always check the latest contact details on GOV.UK before sending documents or payments.
This page is about the equity loan. The Help to Buy ISA is a separate savings product and is not covered here.
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Is it different in Wales or Scotland?
Yes. Each nation has its own scheme and rules.
Wales. Help to Buy - Wales provides an equity mortgage of up to 20% of the purchase price. The Welsh Government says it must be repaid within 25 years, although you can repay it at any time, in part or in full, with or without selling. You must instruct your own RICS valuer to confirm the current market value, and a change of ownership needs the scheme’s permission. The full rules on selling are in the scheme’s post sales guide. Applications for the scheme must be submitted by 31 March 2027.
Scotland. If you bought through Help to Buy (Scotland), mygov.scot says that when you sell, you pay the Scottish Government its share of the sale price. For example, if it owns 15% and the home sells for £170,000, it is due 15% of £170,000, and the same applies if the value has fallen. Selling fees such as estate agent and solicitor fees are not deducted before the share is worked out, and you meet all costs, including those of the administering agent and Scottish Ministers.
Shared ownership is different again. MoneyHelper explains that if you own less than 100% of a shared ownership home, you must offer it to your housing provider first, and you will need a RICS survey to confirm the price.
When does a quick sale make sense with Help to Buy?
It can, for example if the costs of waiting are high, the home has problems that put off mortgage buyers (see our guide to hard-to-sell homes), or a deadline cannot move. If you bought recently, our guide to how soon you can sell after buying covers the other costs to check. It makes the least sense where the home would sell readily on the open market, because the equity loan repayment will not shrink to match a lower price.
If you have your figures and want to compare, you can get offers for my home from vetted cash buyers on our panel. Tell us the home has a Help to Buy equity loan so buyers can factor in the valuation and redemption steps. We never charge homeowners, and there is no obligation to accept any offer.
Common questions
Do I have to pay back Help to Buy when I sell?
Yes. GOV.UK says that if you sell your home, you pay the equity loan percentage of the market value, or of the agreed sale price if that is higher. The repayment is made from the sale proceeds on completion, along with any interest or fees owed.
Who pays for the RICS valuation?
You do. GOV.UK says you choose the surveyor and arrange and pay for the report yourself. The surveyor must be RICS qualified and registered, independent of any estate agent, and not related or known to you.
How long is a Help to Buy valuation valid for?
GOV.UK says the report is valid for 3 months from the date it was produced. If it is about to expire, you can ask for a desktop valuation, which extends it by 3 months from the expiry date and needs at least 6 comparable sales from the last year.
What if my home is worth less than when I bought it?
The repayment is a percentage of the current market value or sale price, whichever is higher, not a fixed sum. So if the home has fallen in value, the amount you repay falls too. If the sale proceeds do not cover everything you owe, GOV.UK says you will need to make an additional payment.
Can I sell my Help to Buy home to a cash buyer?
Yes, but the equity loan is still repaid on the higher of the RICS market value and the sale price. If you accept less than the valuation, the whole discount comes out of your share of the proceeds, so work out the figures before you agree a price.
Related guides
- Selling a house with a mortgage Redemption, early repayment charges, porting and negative equity.
- How much do cash house buyers pay? Why offers are below market value, and how to judge one.
- Documents you need to sell a house A checklist of the paperwork for a sale, and where to find it.
- How soon can you sell a house after buying it? No legal minimum, but mortgage charges, tax, costs and negative equity.