Support for Mortgage Interest (SMI) Loan

If you own your home and you're having trouble paying the interest on your mortgage, you might be eligible for a Support for Mortgage Interest (SMI) loan.

What is Support for Mortgage Interest?

Support for Mortgage Interest (SMI) is a loan to help you pay for the interest on mortgage payments or other eligible home improvement loans. It's also known as Help with Housing Costs.

When do SMI loans need to be paid back?

If you have enough equity in your property, you'll eventually pay back what you borrowed – either when your property is sold, its ownership is transferred, or it forms part of your estate after your death.

How much Support for Mortgage Interest could I get?

If you don't receive Pension Credit, you could get help paying interest on up to £200,000 of your mortgage or loan.

If you do receive Pension Credit, you could get help on up to £100,000 of your mortgage or loan.

In most cases, the SMI payment is made directly to your lender. Interest is currently calculated at a rate of 3.66%.

You'll be charged 'compound' interest on an SMI loan, which means each month's interest is added to your total borrowed amount when the next month's interest is calculated.

Compound interest on an SMI loan can sometimes mount up more quickly than you'd expect, leaving you with less equity in your home. It's important to consider your options carefully before going ahead.

Am I eligible for Support for Mortgage Interest?

You might be eligible for SMI if you receive one of the following benefits:

• Pension Credit
• Income Support
• income-related Jobseeker’s Allowance
• income-related Employment and Support Allowance
• Universal Credit

As well as claiming one of the above benefits, you also need to be liable to pay interest on your mortgage or have an eligible home improvement loan.

How to apply for Support for Mortgage Interest?

How you should apply for SMI depends on what other benefits you currently receive.

• If you receive Income Support, income-based Jobseeker's Allowance (JSA) or income-related Employment and Support Allowance (ESA), contact Jobcentre Plus.
• If you receive Pension Credit, contact the Pension Service.
• If you receive Universal Credit, contact the Universal Credit helpline.