Help to buy interest calculator

Help to Buy Interest Calculator

Has it already been 5 years since you secured your help to buy loan?

If so, your interest-free period is up and you will start being charged a rate on the money you’ve borrowed. 

Use our help to buy interest calculator below to find out how much is being added to your repayments each month.

How Help to Buy Interest Works

For the first 5 years, you won’t be charged loan fees on the money you have borrowed from the government.

In the 6th year you will be charged a fee of 1.75% of the total value of the loan.

Thereafter the fee will increase every year in line with the rate of inflation. This is calculated by using the Retail Price Index (RPI) + 1%, and is a figure set by the Office of National Statistics.

Paying off Help to Buy

Help to Buy Interest Rate Calculation

The following is how your help to buy interest rate will be calculated:

  • Years 1-5: 0%
  • Year 6: 1.75%
  • Year 7: 1.75% + RPI + 1%


Importantly, these fees do not go towards paying off the actual loan.

Paying Back Your Loan

If you are now looking to repay, remortgage or sell your help to buy property, you are required by Target to get an independent Help to Buy Valuation by a Chartered Surveyor.

This is used to calculate the current market value of your property, which will determine the amount you will have to pay back.

Help to Buy Loan Repayment


Your Help to Buy Valuation is only valid for 3 months. It is therefore very important that you have planned ahead and have everything in place prior to Instructing your Chartered Surveyor. This is even more important when remortgaging your property, as a new mortgage process can take considerable time.

Of course, you can always talk to one of our Surveyors ahead of time and we’ll be happy to help you prepareWe are regulated by the RICS, and are registered with the Financial Conduct Authority and the Ombudsman Services: Property.