When the government launched the Help to Buy scheme, it was designed to make homeownership more achievable. For many buyers, it did just that, offering a leg up onto the property ladder at a time when saving a large deposit seemed impossible.

But now, years later, thousands of homeowners are discovering the downside: the rising cost of interest payments attached to their Help to Buy loans.

The Catch With Help to Buy

The scheme gave buyers the option to borrow up to 20% (40% in London) of the property price, interest-free for the first five years. The trouble starts in year six, when interest charges kick in. While the initial rate seems low, it rises annually and with today’s high interest environment, those monthly costs can escalate quickly.

For many households, this means:

  • Paying hundreds of pounds a month in extra interest, with no dent in the original loan balance.
  • Finding it harder to remortgage or sell, especially as property values fluctuate.
  • Feeling trapped financially, as their housing costs spiral.

Why Debt Consolidation Could Help

If you’re in this position, one option worth exploring is debt consolidation. This isn’t about taking on more debt, it’s about restructuring what you already owe in a way that’s more manageable.

By consolidating, you could:

  • Replace multiple expensive debts (like a Help to Buy loan and credit cards) with one monthly repayment.
  • Potentially secure a lower overall interest rate, reducing the cost over time.
  • Simplify your finances, making budgeting less stressful.

For some, it could also mean refinancing the Help to Buy loan altogether, either through a new mortgage deal or by rolling it into a structured repayment plan that works better long-term.

The Bottom Line

Help to Buy was a useful lifeline for many, but the rising cost of interest is catching homeowners out. If you’re struggling with repayments or simply want to free up some breathing space in your budget, it may be time to look at debt consolidation or other refinancing options.

The key is not to ignore the problem, the sooner you explore your options, the more control you’ll have over your financial future.