Help to Buy and Remortgaging — Can You Switch Lenders or Products?

Remortgaging With a Help to Buy Equity Loan — What You Need to Know

Many Help to Buy borrowers reach the end of their initial mortgage fix and need to remortgage. Perhaps you took a two- or five-year fixed rate and your current deal is expiring, or you want to switch to a better rate from a different lender. The good news is that remortgaging a Help to Buy property is possible. The important caveat is that you must obtain written consent from Target HCA before you complete any remortgage — without it, you are in breach of your equity loan agreement.

Why Do You Need Consent?

Your Help to Buy equity loan is secured by a second charge on your property. The government sits behind your main mortgage lender in priority. When you change your first-charge mortgage — whether by switching lenders or moving to a new product — the legal arrangements over your property change, and Target HCA must agree to those changes to protect the government's position.

This is a consent process, not a veto. Target HCA will not routinely refuse a reasonable remortgage, but they must be formally notified and must provide their written consent before your new mortgage completes.

What Target HCA Will and Will Not Approve

Target HCA will generally consent to a remortgage where:

• The new mortgage does not exceed the value of your original first-charge mortgage (i.e., you are not increasing your total mortgage borrowing)
• The new lender is a recognised mainstream mortgage lender
• The purpose is straightforward rate switching or product transfer, not raising additional capital

Target HCA will not consent to a remortgage that increases your borrowing above the level of the original first-charge mortgage, as this could undermine the government's security.

Can You Raise Capital by Remortgaging?

Raising additional capital (a further advance) on a Help to Buy property is possible in principle, but it requires Target HCA's consent and must not extend your total mortgage borrowing beyond the first-charge level agreed at original purchase. In practice, capital raising is complex on a Help to Buy property and many lenders are reluctant to facilitate it. Speak to a mortgage broker with specific Help to Buy experience before pursuing this route.

The Consent Process — Step by Step

**1. Contact Target HCA.** Log in to your Target HCA account and submit a consent to remortgage request. You will need to provide details of the new lender and mortgage product.

**2. Allow time for processing.** Target HCA aims to process consent requests within a set timeframe, but allow at least two to three weeks. Do not exchange or complete on your remortgage before receiving written consent.

**3. Provide consent documentation to your new lender.** Your mortgage lender and solicitor will require Target HCA's written consent as part of the remortgage legal process.

**4. Complete the remortgage.** Once consent is in place, your solicitor can complete the remortgage in the normal way. The equity loan charge remains in place — it is not discharged by remortgaging.

Product Transfers vs Lender Switches

If you are staying with the same lender and simply moving to a new product (a product transfer), the legal position is less complex — you are not changing the first-charge lender, only the rate. Some lenders handle product transfers administratively without a full legal process. However, it is still advisable to confirm with Target HCA whether a formal consent request is required in your specific case.

Planning Your Remortgage Timing

Because the consent process takes time, plan your remortgage well in advance of your current deal expiring. If your fix ends and you revert to a standard variable rate while waiting for consent, the cost can be significant. Most mortgage advisers recommend starting the process at least four to six months before your current deal expires.

Use our [Help to Buy calculator](/help-to-buy-calculator) to understand your current equity loan position before you speak to a mortgage broker, so you have a clear picture of the full picture of charges secured on your property.

Key Points

• You must obtain written consent from Target HCA before completing any remortgage
• Consent is generally granted for like-for-like lender switches that do not increase total borrowing
• Allow at least two to three weeks for Target HCA to process your consent request
• The equity loan charge remains in place after remortgaging — it is not redeemed
• Capital-raising remortgages on Help to Buy properties are complex and require specialist advice