Head of Content
Mortgage Advisor & Director
Who is eligible for a Support for Mortgage Interest loan?
To be able to apply, you'll need to be getting one of these benefits:
- Jobseeker's Allowance (JSA)
- Employment and Support Allowance (ESA)
- Income Support
- Universal Credit
- Pension Credit
If you receive Universal Credit, Jobseekers Allowance, Employment and Support Allowance or Income Support, you can typically start receiving SMI payments from about nine months after you began to claim. For pension credit, your SMI payments will start immediately.
What can SMI loans help with?
It's important to note that SMI loans cover the interest element of the payments only, not the amount you borrowed in the first place.
For example, if your monthly mortgage repayments are £500, of which £150 is interest, an SMI loan will help you to cover the interest of £150 but not the remaining £350.
SMI loans can help pay the interest on:
- Mortgage repayments on your home
- Other loans that are secured on your home
- Loans for other costs associated with your home, such as stamp duty
- Loans to pay off your mortgage
Will I pay interest on my Support for Mortgage Interest loan?
Yes, the current rate of interest charged is 0.3%; however, this may go up or down.
What is the cap on mortgage value?
You can claim SMI payments on up to £200,000 of loan value.
How is the Support for Mortgage Interest Loan paid?
SMI payments are typically made directly to your lender.
How do you repay the SMI loan?
You will typically repay your loan either when you sell or transfer ownership of your home.
The SMI interest rate charged changes no more than twice a year, and the current rate is 0.3%. If, after repaying your mortgage and other loans secured on your home in full, there is not enough money left to cover the SMI, the remaining SMI will be written off. You are also allowed to make voluntary payments to reduce the amount of interest you'll owe.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
