Getting help to make your mortgage interest payments

Homeowners on certain benefits may be able to get help towards mortgage interest payments called Support for Mortgage Interest (SMI). Find out if you are eligible, how to claim SMI and what extra help is available during the economic downturn.

SMI – what it is and who is eligible

You may get help with mortgage interest payments as part of your benefits if you are a homeowner and are eligible for:

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

You'll only get help towards mortgage interest payments for a mortgage or loan to buy or improve your home. It’s normally paid directly to your lender. There’s no guarantee that you’ll get SMI for a loan you take out.

Find out about benefits you may be eligible for by following the links below.

Income Support
Jobseeker's Allowance
Employment and Support Allowance
Pension Credit (Directgov)

What’s not included in SMI

SMI isn’t available to help you pay:

• the amount you borrowed (only the interest on the mortgage is paid)
• anything towards insurance policies you have
• mortgage arrears

Claiming SMI and getting your questions answered

Contact Jobcentre Plus or The Pension Service to:

• check your eligibility
• claim help to make your mortgage interest payments
• ask any questions about this help that you may have

Contact Jobcentre Plus
Contact The Pension Service

Changes to SMI during the economic downturn

Temporary extra help through SMI has been available since 5 January 2009 because of the economic downturn.

Conditions that apply to SMI since 5 January 2009

There are some conditions that apply to most claims for help with your mortgage interest made since 5 January 2009:

• you wait 13 weeks from the date you claim before you get SMI (this is known as a waiting period and was previously 39 or 26 weeks)
• you’ll be able to claim for mortgage interest on up to £200,000 of your mortgage (this was previously £100,000)
• if you have claimed Jobseeker’s Allowance on or after 5 January 2009 you’ll be paid SMI for two years only
• if you were still in the waiting period to get SMI under the old conditions on 4 January 2009, you’ll be eligible for the temporary extra help

If you have questions about these conditions, contact Jobcentre Plus or The Pension Service by following the links below.

Contact Jobcentre Plus
Contact The Pension Service

If you claim Pension Credit - conditions that apply to SMI

If you claim Pension Credit, there are certain conditions that apply to claiming help towards mortgage interest payments. These are:

• there isn’t a waiting period before you receive help with mortgage interest payments
• you’ll be able to claim for mortgage interest on up to £100,000 of your mortgage

Moving to Pension Credit from other benefits

You’ll be able to get help with your mortgage interest on up to £200,000 of your mortgage if you move on to Pension Credit within 12 weeks of ending a claim for:

• Income Support
• income-based Jobseeker’s Allowance
• income-related Employment and Support Allowance

You’ll be able to continue getting the same amount of help if you remain eligible for Pension Credit.

SMI – what was available before the economic downturn

Different conditions applied to SMI up to 5 January 2009 - before new conditions were introduced as a result of the economic downturn. If you got help to make mortgage interest payments before this date, you'll continue to get the same level of help.

Conditions that apply to SMI before 5 January 2009

The following conditions apply to SMI claims before 5 January 2009:

• you can only claim mortgage interest on up to £100,000 of your mortgage
• if you took out a mortgage or home improvement loan after 2 October 1995, there is a waiting period of 39 weeks - if eligible, you receive SMI from week 40

SMI – if you are ‘vulnerable’ or took out a loan before 2 October 1995

There are specific conditions that apply to getting help with your mortgage interest if you made a claim before 5 January 2009 and you:

• are considered vulnerable, eg a single parent claiming benefit because your partner has abandoned you
• took out a loan before 2 October 1995

If you are considered vulnerable, or you took out a loan before 2 October 1995, you’ll get:

• no help with mortgage interest payments for the first eight weeks of your claim
• 50 per cent of the mortgage interest for the next 18 weeks
• 100 per cent of the mortgage interest from the 27th week

If you want to know whether you are considered vulnerable, contact Jobcentre Plus by following the link below.

Contact Jobcentre Plus

Keeping your home - advice from Directgov