It is not free money, and it does not pay off what you borrowed. But it can keep a home safe through a hard spell, with no credit check and no fees.
Quick facts
- Covers
- Interest only, on up to £200,000
- Paid to
- Usually your lender
- Type
- A loan, repaid from your equity
- Benefits
- Universal Credit, Pension Credit or income-related ESA
- Wait on UC
- Three months in a row
- Wait on Pension Credit
- None
What it is
The Department for Communities makes regular payments towards the interest on your mortgage, usually straight to your lender. There is no lump sum, no credit check and no set-up fee.
It does not pay off what you borrowed, insurance, or arrears. The amount you owe grows with each payment.
Who can get it, and when
You must own your home and get Universal Credit, Pension Credit or income-related ESA. The help can start:
- on Pension Credit: from the date your Pension Credit starts
- on Universal Credit: after three months in a row (earnings can push this back)
- on income-related ESA: after 39 weeks in a row
How much it covers
It covers the interest on up to £200,000 of your loan or mortgage. For people on Pension Credit the limit is lower, £100,000. If you already get it and move to Pension Credit within 12 weeks of your other benefits stopping, the £200,000 limit stays.
Paying it back
The loan is usually secured on your home. When you sell or ownership passes, you pay the Department back from any equity left after your mortgage is repaid.
Common questions
Is Support for Mortgage Interest a loan?
Yes. You repay it from the equity in your home when it is sold or passes to someone else.
How much mortgage does SMI cover?
The interest on up to £200,000, or £100,000 for most people on Pension Credit.
How long do I wait for SMI on Universal Credit?
Three consecutive months on Universal Credit.
Does SMI pay off my mortgage?
No. It only helps with the interest.