Support for Mortgage Interest (SMI)

Printable version

1. Overview

If you바카라 사이트檙e a homeowner or have bought a shared ownership property, you might be able to get help towards interest payments on:

  • your mortgage
  • loans you바카라 사이트檝e taken out for certain repairs and improvements to your home

This help is called Support for Mortgage Interest (SMI).

This guide is also available in Welsh (Cymraeg) and easy read format.

It바카라 사이트檚 paid as a loan, which you바카라 사이트檒l need to repay with interest when you sell or transfer ownership of your home. You may be able to transfer the loan if you바카라 사이트檙e buying a new home.

You need to be getting a qualifying benefit to get SMI.

There바카라 사이트檚 no guarantee that you바카라 사이트檒l get SMI for a mortgage or loan you take out.

What you cannot use SMI for

SMI cannot help you pay:

  • anything towards insurance policies you have
  • missed mortgage payments (arrears)

Speak to your lender

You could speak to your mortgage lender before you apply for SMI.

Some lenders can offer other ways to help, such as temporary payment holidays, interest-only payments or extending your mortgage term to reduce monthly payments.聽

Help and support

Check if you can get cost of living support.

You can get free information about housing support from:

2. What you'll get

You바카라 사이트檒l get help paying the interest on your mortgage or loan.

Support for Mortgage Interest (SMI) usually helps pay the interest on up to 拢200,000 of your loan or mortgage. However, you can only get up to 拢100,000 if either:

If you바카라 사이트檙e already getting SMI and move to Pension Credit within 12 weeks of stopping your other benefits, you바카라 사이트檒l still get help with interest on up to 拢200,000.

The interest rate used to calculate the amount of SMI you바카라 사이트檒l get is currently 3.66%.

Example

You have 拢250,000 of your mortgage left to pay and you바카라 사이트檙e eligible for SMI for up to 拢200,000.

At the current SMI interest rate, you바카라 사이트檒l get a loan of 3.66% of 拢200,000 across a year. This is 拢7,320 a year or 拢610 a month.

What you바카라 사이트檒l pay back

SMI is paid as a loan. You바카라 사이트檒l need to repay the money you get with interest when you sell or transfer ownership of your home (unless you바카라 사이트檙e moving the loan to another property).

If you want to pay the loan back more quickly, you can also make voluntary repayments.

Find out more about how you repay your SMI loan.

How SMI is paid

SMI is normally paid direct to your lender.

You can ask to stop getting SMI at any time by .

When payments can start depends on what benefit you바카라 사이트檙e claiming.

If you get Pension Credit

Payments can start from the date you start getting Pension Credit.

If you get Universal Credit

Payments can start if you바카라 사이트檝e got Universal Credit for 3 months in a row.

If you move to Universal Credit within a month of another benefit ending, payments can start when you바카라 사이트檝e spent 3 months in total getting that previous benefit and Universal Credit.

If you get Income Support, income-based JSA or income-based ESA

Payments can start when you바카라 사이트檝e claimed for 39 weeks in a row.

3. Eligibility

To be eligible for a Support for Mortgage Interest (SMI) loan, you must own your home or have bought a shared ownership property. You must also be getting one of the following qualifying benefits:

Contact the relevant office to claim SMI. There바카라 사이트檚 no credit check.

You can start getting the loan:

  • from the date you start getting Pension Credit
  • after you바카라 사이트檝e聽got Universal Credit聽for聽3 months聽in a row or you moved to Universal Credit within a month of another benefit ending and you바카라 사이트檝e spent 3 months in total getting these benefits

You can apply for SMI from the date you start getting your benefit.

If you stopped getting SMI because you stopped getting a qualifying benefit

You바카라 사이트檒l start getting SMI again straight away if:

  • you stopped getting Universal Credit but you started getting it again within 6 months
  • you stopped getting Pension Credit and you were moved to Universal Credit
  • you stopped getting Income Support, income-based JSA or income-based ESA, and you applied for Universal Credit within a month

Otherwise, you바카라 사이트檒l have to wait the normal period before getting SMI again.

4. How to apply

When you apply for a qualifying benefit, you바카라 사이트檒l be asked extra questions about your housing costs to find out if you바카라 사이트檙e eligible for Support for Mortgage Interest (SMI).聽

If you then want to apply for SMI, you바카라 사이트檒l need to fill in and sign in a form. You do not need to pay a fee to apply.

Before filling in the form, you바카라 사이트檒l need to:

  • find out how much mortgage or home improvement loans you have left to pay
  • find out how much interest you바카라 사이트檙e paying on your mortgage or home improvement loans
  • get your partner to agree to sign the form, if you have a partner

You바카라 사이트檒l then need to send the form to your lender for them to complete. Your lender will send the completed form to the office that pays your benefit.

If you qualify for SMI, you바카라 사이트檒l be offered a loan. You can choose to accept it or turn it down.

If you turn down the offer at first, you can still accept it at any time as long as you바카라 사이트檙e eligible for SMI. The payments to your lender can be backdated up to when you were first entitled to the loan. Contact the office that pays your benefit.

If you already get a qualifying benefit

Contact the office that pays your benefit to find out if you could get an SMI loan.

The payments to your lender can be backdated up to when you were first entitled to the loan.

If you get or have applied for Income Support, income-based JSA or income-related ESA, contact Jobcentre Plus.

Jobcentre Plus
Telephone: 0800 169 0310
Textphone: 0800 169 0314
(if you cannot hear or speak on the phone): 18001 then 0800 169 0310
British Sign Language (BSL) if you바카라 사이트檙e on a computer - find out how to
Welsh language: 0800 328 1744
Monday to Friday, 8am to 5pm
Find out about call charges

If you get or have applied for Pension Credit, contact the Pension Service.

Pension Service
Telephone: 0800 731 0469
Textphone: 0800 731 0464
(if you cannot hear or speak on the phone): 18001 then 0800 731 0469
British Sign Language (BSL) if you바카라 사이트檙e on a computer - find out how to
Welsh language: 0800 731 0453
Welsh language textphone: 0800 731 0456
Monday to Friday, 8am to 6pm (except public holidays)
Find out about call charges

If you get or have applied for Universal Credit, you can either:

Universal Credit helpline
Telephone: 0800 328 5644
(if you cannot hear or speak on the phone): 18001 then 0800 328 5644
British Sign Language (BSL) if you바카라 사이트檙e on a computer - find out how to
Welsh language: 0800 328 1744
Textphone: 0800 328 1344
Monday to Friday, 8am to 6pm
Find out about call charges

5. Repaying your loan

You바카라 사이트檒l need to repay your SMI loan as a lump sum with interest if you sell or transfer ownership of your home.

The interest you pay can go up or down, but the rate will not change more than twice a year. The current rate is 4.1%. You바카라 사이트檒l be told if this is going to change.

Interest will be added every year until the loan is completely repaid or written off.

If you die before you바카라 사이트檝e paid off your SMI loan, it will not need to be repaid if your home is left to a surviving partner. The loan will need to be repaid if your home is left to anyone else or it바카라 사이트檚 sold.

If you finish paying your mortgage, you will not need to repay your SMI loan unless you sell or transfer ownership of your home.

Selling your home

You will not be asked to sell your home in order to repay your SMI loan.

If you sell your home, you바카라 사이트檒l repay the SMI loan from what바카라 사이트檚 left after you pay:

  • your mortgage
  • any other loans secured against your home before you started getting SMI, including home improvement loans

If you do not have enough left to pay off all of the SMI loan, you will have to pay back what you can. The rest of the loan will be written off.

Example 1

You sell your property for 拢95,000.

You have 拢35,000 of your mortgage left to pay and you owe 拢4,500 for your SMI loan.

You바카라 사이트檒l be left with 拢55,500 after repaying your mortgage and SMI loan.

Example 2

You sell your property for 拢80,000.

You have 拢71,000 left to pay in your mortgage and you owe 拢9,600 for your SMI loan.

After repaying your mortgage you only have enough money to pay back 拢9,000 of your SMI loan. The remaining 拢600 will be written off and you do not have to repay it.

If you바카라 사이트檙e buying a new home

You may be able to transfer the loan to your new home. Contact DWP Loan Management as soon as you know you intend to move, and before you complete your sale.

DWP Loan Management
Telephone: 0800 916 0567
(if you cannot hear or speak on the phone): 18001 then 0800 916 0567
Monday to Friday, 8am to 6pm
Find out about call charges

SMI Loan Management
Post Handling Site A
Wolverhampton
WV98 2DS

You바카라 사이트檒l need to give DWP Loan Management your solicitor바카라 사이트檚 contact details. They will work with your solicitor to arrange for the loan to be moved to your new home.

The office paying your qualifying benefit will also check you바카라 사이트檙e still eligible.

Voluntary repayments

If you want to pay the loan back more quickly, you can also make voluntary repayments. The minimum voluntary repayment is 拢100 or the outstanding balance if it바카라 사이트檚 less than 拢100.

How to repay

Contact DWP Loan Repayment to ask for a 바카라 사이트榮ettlement letter바카라 사이트� - this will tell you how much you need to pay.

You can pay by telephone or online banking using the bank account details in your settlement letter.

DWP Loan Repayment
Telephone: 0800 916 0567
(if you cannot hear or speak on the phone): 18001 then 0800 916 0567
Monday to Friday, 8am to 6pm
Find out about call charges

6. If your benefits stop

You can still get financial help with your housing costs if your Income Support, income-based Jobseeker바카라 사이트檚 Allowance or income-related Employment and Support Allowance is going to stop because you are about to:

  • return to work full-time
  • work more hours
  • earn more money