Can I get help paying my mortgage interest?

Who can get SMI

You must have a mortgage or home improvement loan on the home you live in, and get one of these qualifying benefits:

• Universal Credit
• Pension Credit
• income-related Employment and Support Allowance (ESA)

There is no credit check.

When payments start

If you moved to Universal Credit within a month of another benefit ending, the 3 months can be made up of time on both benefits. GOV.UK does not give a separate start date for income-related ESA, so ask the office that pays your benefit.

How much you could get

SMI is worked out on up to £200,000 of your mortgage or home improvement loans. The limit is £100,000 if you get Pension Credit, or if you claimed another qualifying benefit before January 2009 while under State Pension age.

The amount is set using a standard interest rate, not your lender's rate. The current SMI rate is 3.66%. The money goes straight to your lender.

Example 1: you owe £200,000. The yearly loan is £200,000 x 3.66% = £7,320. That is £610 a month.

Example 2: you owe £150,000. The yearly loan is £5,490, which is £457.50 a month.

What SMI does not cover

• the money you borrowed (the capital), only interest
• missed payments you already owe (arrears)
• insurance policies

How to apply

1. Answer the housing cost questions when you claim your benefit.
2. Find out how much you still owe and how much interest you pay.
3. Fill in and sign the SMI form. There is no fee. Your partner must sign too if you have one.
4. Your lender adds its part and sends it to the benefit office.

Payments to your lender can be backdated to when you first became entitled.

Paying it back

SMI is a loan secured on your home. Interest is added to it, currently at 4.5% a year. You usually repay when you sell your home or transfer ownership. You can also make voluntary repayments of £100 or more at any time.

If there is not enough money left from the sale to repay it all, you pay what you can and the rest is written off. If you die, a partner living with you can take over the loan with the property. Anyone else who inherits must repay it.

If you are buying a new home, contact DWP Loan Management before the sale completes to ask about moving the loan.

Free help

Speak to your lender as soon as you struggle with payments. Citizens Advice can also help with mortgage problems.

Related guides

• What is the Universal Credit housing element?
• Can you get Universal Credit if you own your home?
• Can I still claim Housing Benefit?
• What help is there if I am behind with my rent?
• What is a Discretionary Housing Payment?

Where these figures come from

• Support for Mortgage Interest (GOV.UK)
• SMI eligibility (GOV.UK)
• SMI: what you'll get (GOV.UK)
• SMI: how to apply (GOV.UK)
• SMI: repaying your loan (GOV.UK)