The Treasury is reportedly in talks with investors to offload the loans, which would free up cash to invest in other public services.
It comes amid a wider review of the Government’s balance sheet, which was announced in the 2017 Budget and set to be updated in the Budget later this year.
Under the Help to Buy equity scheme launched in 2013, borrowers were given interest-free loans for five years to put toward a deposit for property, provided they had saved at least 5%.
As of next month, the earliest of more than 144,000 borrowers who have used the scheme, will start to pay 1.75% of the loan value, which is to rise in line with inflation.
The government has been talking to major asset managers in recent months about selling the book, according to the Financial Times.
The average equity loan for borrowers in the scheme is £51,040, used to buy a home worth an average £243,818, according to official data.
The total value of the properties sold under the scheme totals £35bn.
The Treasury declined to comment.