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The FHS journey does not end at drawdown
Once the First Home Scheme funds are drawn down, the equity facility remains attached to your home until it is redeemed or otherwise dealt with under the scheme rules. That means you should keep track of more than just the original amount you received.
Good management is mostly about records, timing and knowing when to ask before making a major change. Selling, renting out, switching mortgage, topping up borrowing, redeeming the share and changing ownership can all create FHS questions.
| Area to track | Why it matters |
|---|---|
| Annual statement | Shows the equity share position, service charges and redemption activity. |
| Service charges | May apply from year 6 if the share remains outstanding. |
| Insurance | The property should remain properly insured according to lender and scheme requirements. |
| Property use | FHS homes are intended as principal private residences, not investment properties. |
| Mortgage changes | Switching or top-ups may require no-objection steps or redemption planning. |
| Redemption planning | Buying back the share may require a current valuation and service-charge calculation. |
Annual checklist for FHS homeowners
- Read the annual statement — check the FHS equity share, any payments and any service-charge position.
- Update your long-term plan — decide whether you want to redeem early, wait, or budget for service charges.
- Keep insurance active — maintain suitable building insurance and keep documents accessible.
- Save major documents — customer contract, solicitor documents, statements, valuations and service-charge notices.
- Review property use — confirm the home is still your main residence and ask before renting or changing use.
- Check before changing mortgage — switching, top-ups and restructuring can interact with the FHS equity share.
Documents to keep in one folder
- FHS eligibility certificate and customer contract.
- Mortgage offer and drawdown documents.
- Solicitor correspondence and signed FHS forms.
- Annual FHS statements.
- Service charge notices or payment records.
- Property valuation reports used for redemption.
- Insurance documents and proof of cover.
- Any no-objection or approval correspondence for switching, top-ups or ownership changes.
This may sound boring, but it can save time when selling, switching, redeeming or answering solicitor/lender questions years later.
What to check before making a major change
| Change | FHS question to ask first | Useful guide |
|---|---|---|
| Redeeming part or all of the share | Do I need an updated valuation and what service charges are due? | Redeeming FHS Equity |
| Selling the home | How will the FHS share be cleared on completion? | Selling or Renting Out After FHS |
| Renting out the home | Would this break the principal-private-residence requirement? | Selling or Renting Out After FHS |
| Switching lender | Is the new lender participating, or will redemption be required? | Switching Mortgage with FHS |
| Mortgage top-up | Is the purpose allowed and will enough equity remain? | Mortgage Top-Ups with FHS |
Planning the year-6 point
One of the most important dates is the move from the early no-service-charge years into the period where service charges may start applying. This does not mean everyone must redeem immediately, but it does mean you should stop ignoring the equity share.
| Timing | Practical action |
|---|---|
| Years 1–3 | Keep documents, review statements and understand how redemption works. |
| Years 4–5 | Estimate whether partial redemption, full redemption or keeping the share is realistic. |
| From year 6 | Check service charges, payment options and whether buying back some of the share makes sense. |
| Before sale/switch/top-up | Ask early, because the FHS position can affect solicitor and lender timelines. |
Use the FHS Service Charge Calculator for a rough planning estimate, then confirm actual charges with official documents.
Frequently asked questions
Will I receive an annual FHS statement?
Yes, official FHS guidance says homeowners receive annual information about the equity facility, including details such as service charges, redemption payments and the equity share held.
Do I need to keep building insurance?
Yes. Keep adequate building insurance in place and follow lender and scheme requirements. Store proof of cover with your FHS documents.
Can I ignore FHS until I sell?
That is not a good idea. Service charges, valuations, switching, top-ups and redemption planning can all matter before sale.
What happens if I want to rent out the property?
FHS-supported homes are intended as a principal private residence. Before renting or changing use, check the official scheme rules and speak with your solicitor.
Should I redeem before service charges start?
It depends on your finances, property value and mortgage options. Some people redeem early; others cannot or choose not to. Compare service charges, valuation risk and affordability before deciding.
Who should I contact before switching mortgage or topping up?
Speak with the proposed lender, your solicitor and the official FHS process before committing. The FHS share can affect whether a switch/top-up is straightforward.
Sources & references
Related calculators
Use these tools for the numbers behind this guide.