Help to Buy Calculator
Calculate your mortgage payments under the Help to Buy Equity Loan scheme, including Year 6 management fees and equity loan repayment projections for England and London.
The equity loan is repaid as a % of property value at time of repayment — so if property rises, you repay more. Repayment projections assume 3% annual growth. Year 6 fee rises with RPI + 1% each year.
How to Use This Help to Buy Calculator
Enter your Property Value (max £600,000), select England or London (which allows up to 40% equity loan), then set your Deposit (minimum 5%) and the Equity Loan % you want to take. The calculator shows your mortgage size, monthly payments, Year 6 fees, and estimated equity loan repayment amounts.
How Help to Buy Works
The Help to Buy Equity Loan scheme (England) was a government programme that allowed buyers to purchase a new-build home with just a 5% deposit. The government lent up to 20% of the property value (40% in London) interest-free for the first 5 years. The buyer provides a mortgage for the remaining balance.
Important: The Help to Buy Equity Loan scheme closed to new applications in March 2023. However, many buyers who took the scheme are still in it — this calculator helps them understand ongoing fees and repayment scenarios.
Equity Loan Fees from Year 6
From the start of year 6, you pay an annual management fee of 1.75% of the original equity loan value, rising each April by the Consumer Price Index (CPI) plus 2%. This fee is paid monthly on top of your mortgage. There is no interest — it is solely a management fee.
Repaying the Equity Loan
You must repay the equity loan when you sell the property, pay off your mortgage, or at the end of the mortgage term. Crucially, you repay the same percentage of the property's current market value — not the original loan amount. If your property rises in value, you repay more.
Help to Buy Structure
Example (England, £300,000 property):
Deposit: £15,000 (5%)
Equity Loan: £60,000 (20%)
Mortgage: £225,000 (75%)
Year 6 Fee = Equity Loan × 1.75% / 12 per month
(rises by CPI + 2% each April)
Repayment at Sale = Sale Price × Original Equity Loan %
Example: Help to Buy in London
Anna Buying a £450,000 New Build in East London
Anna uses the London Help to Buy scheme with a 5% deposit and a 35% equity loan, leaving just a 60% LTV mortgage.
| Property Price | £450,000 |
| Anna's Deposit (5%) | £22,500 |
| Equity Loan (35%) | £157,500 |
| Mortgage (60%) | £270,000 |
| Monthly Mortgage (4.25%, 25yr) | £1,466 |
| Years 1–5 Monthly Cost | £1,466 (no equity loan fee) |
| Year 6 Monthly Fee (1.75%) | £230 |
| Year 6 Total Monthly | £1,696 |
| Repay at Year 5 (est. £517K) | £181,000 (35% of £517K) |
Anna's mortgage LTV of 60% gives her access to competitive rates. However, the equity loan repayment rises with property values — if the flat appreciates to £600,000 before she sells, she repays £210,000 (35% × £600,000) on the original £157,500 loan — effectively paying £52,500 extra for rising property prices.