Support For Mortgage Interest
Support for mortgage interest (SMI) is a loan from the Department of Work and Pensions (DWP) to help pay towards the interest on your mortgage or another home loan.
You might get SMI if you own your home or you’re in a shared ownership scheme.
You need to be getting one of these benefits:
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Income Support
- Universal Credit
- Pension Credit
If you get Universal Credit and you earn any money from work, the DWP won’t offer you SMI.
The DWP will charge interest on the SMI loan – this means you’ll pay back more than you borrowed. Even though you’ll pay interest, it could be cheaper than other ways of borrowing money.
You’ll need to pay back the loan, but usually only when you sell your home or give it to someone else. For example, you might give the home to your son or daughter, even if you still live there.
You won’t have to pay back any money you get in your benefit payments to help with other housing costs like service charges.
Check if you can get SMI for your loan
SMI can help to pay the interest payments for a:
- mortgage for the home you live in
- loan to help you buy more of your home
- loan to help with other costs like legal fees and stamp duty
- loan to pay off your mortgage
- alternative finance arrangement like an Islamic mortgage – if you get Universal Credit or Pension Credit
You might also get help with other loans for service charges or repairs.
SMI can only help pay your interest payments. It won’t pay off the capital of your mortgage.
If you would like help dealing with claiming benefits, the cost of living or any other issue, please contact Citizens Advice to see how we can help.