When it comes to paying back the loan at the time of selling, the value will be calculated as 20% (or 40% in London, 15% in Scotland) of the sale price.
If you choose to pay back the loan before you come to sell, it will be as a percentage of the future value. If you sell your house or have lived there for over 25 years you will have to repay the equity loan amount back in full if you haven’t already done so.
The Help to Buy equity loan is interest free for the first five years, after which you will be charged a rate of 1.75%.
This rate steadily increases year on year in line with any rise in the Retail Price Index plus 1%. These repayments will be on top of your mortgage repayments.