How to Repay Your Help to Buy Equity Loan — Step-by-Step Guide

How to Repay Your Help to Buy Equity Loan

Repaying your Help to Buy equity loan is not as simple as writing a cheque — there is a formal process managed by Target HCA that requires a professional valuation, an application, and careful coordination with your solicitor. Here is a clear, step-by-step explanation of how it works.

Step 1: Decide Whether to Repay in Full or in Part

You have two options:

• **Full repayment** — clear the entire equity loan at once. This is the most common route when selling your home or when you have accumulated sufficient savings or equity.
• **Partial repayment (staircasing)** — repay a portion of the loan, reducing your future management fees and the percentage the government holds. The minimum partial repayment is **10% of your property's current market value** at the time of repayment.

Note: partial repayment is 10% of your current market value, not 10% of your original loan amount. This distinction matters significantly if your property has risen in value.

Step 2: Commission a RICS Valuation

Before Target HCA will process any repayment, you need a formal valuation from a RICS-registered (Royal Institution of Chartered Surveyors) surveyor. This is a full Red Book valuation — not a mortgage valuation or an estate agent's market appraisal.

The valuation must be:

• Completed by a RICS-registered surveyor
• No older than three months when you submit your repayment application to Target HCA
• Based on the property in its current condition

Expect to pay between £250 and £500 for a RICS valuation, depending on your location and property size. You cannot use an automated online valuation or a desktop estimate — only a physical inspection qualifies.

Step 3: Contact Target HCA and Submit Your Application

Once you have your valuation, contact Target HCA through your online account or by telephone. You will need to provide:

• Your equity loan account reference
• A copy of your RICS valuation report
• Confirmation of the repayment amount (for partial repayment)
• Your solicitor's details (for full repayment on a sale)

Target HCA will calculate the exact repayment figure based on your original loan percentage applied to the RICS-confirmed current market value.

Step 4: Instruct Your Solicitor

For a full repayment — whether on sale or as a standalone redemption — your conveyancing solicitor will handle the mechanics of paying Target HCA from the sale proceeds or from your own funds. They will liaise with Target HCA to obtain a redemption statement and confirm the charge is removed from the title.

For partial repayments, your solicitor will also be involved to ensure the equity loan charge is properly updated on the land register.

Step 5: Confirm the Charge Is Removed or Reduced

After repayment, Target HCA will issue a confirmation, and your solicitor will update the title at HM Land Registry. If you have repaid in full, the equity loan charge will be removed entirely. If you have made a partial repayment, the remaining loan percentage will be noted.

Planning Your Repayment With Our Calculator

Our [Help to Buy calculator](/help-to-buy-calculator) can show you what you are likely to owe based on your current property value and your original loan percentage. Enter your details to project the repayment figure before you commission a valuation.

Key Points

• You must use a RICS valuation — no exceptions
• Repayment is calculated on current market value, not original purchase price
• The minimum partial repayment is 10% of current market value
• Target HCA administers all repayments for the closed scheme
• Your solicitor handles the legal mechanics on completion