What is Support for Mortgage Interest? How much may I receive? If you need help paying for your mortgage or loans to improve or repair your home, you may be eligible for this benefit. Your Benefit will tell you everything that you need to know about support for mortgage interest (SMI).
What is support for mortgage interest
If you own your home, you may be eligible for Support for Mortgage Interest (SMI). This can get you help with interest payments on your:
- Mortgage;
- Loans taken for the purpose of doing specific improvements or repairs on your home.
Support for Mortgage Interest (SMI) is paid as a loan. As such, this is something that you will need to pay back with interest. More specifically, when transferring ownership of or selling your house. This is unless you move said loan to another property.
What if I sell or transfer ownership of my home?
You might sell your home or transfer ownership to it to someone else. If this is the case, you will need to pay your support for mortgage interest loan back with interest. Although the rate of the interest may vary, it will only change a maximum of twice a year. Right now, the SMI rate is at 1.4%. If this changes, you will be notified.
| Amount to be paid back for Support for Mortgage Interest (in case of home sale or transfer of ownership) in 2022 | ||
|---|---|---|
| Support for Mortgage Interest amount | Support for Mortgage Interest rate | Total amount to be paid back |
| £578 | 1.4% | £586,09 |
| £578 | 0.8% | £582,624 |
| £578 | 1% | £583,78 |
If you sell your home, you will need to pay your SMI loan. This is for whatever amount is remaining after paying your:
- Loans for the purpose of home improvement;
- Loans secured against your home;
- Mortgage.
Can I pay my loan back quicker?
You may be able to pay your support for mortgage interest loan back quicker. If you wish to do so, you may, by doing voluntary repayments. The minimum amount you may pay back through this is £100. If the outstanding balance is less than this amount, then you would need to pay it back in full.
You may notify the DWP Loan Repayment if you wish to do so. Then, ask for a settlement letter. This will have information on how much you will need to pay.
You may pay the amount back through two methods. First, by phone. Second, through online banking. The necessary information will be located in the letter.
Can I transfer the loan to another property?
You may not want to pay back your Support for Mortgage Interest (SMI). This is the case if you transfer the loan to a new home.
As soon as you know you will move, notify the Department for Work and Pensions (DWP) Loan Management. You must contact them before the sale process is completed. You can call them on 0800 916 0647.
DWP Loan Management will need to be provided your solicitor’s contact information. The office will work with them in order to organize the transfer of the loan.
Support for mortgage interest eligibility
In order to earn Support for Mortgage Interest, you most likely need to be earning a benefit that can qualify you for it. If you do not get it, but you are treated as if getting it, you may still be eligible. Qualifying benefits are:
- Pension Credit;
- Universal Credit;
- Income-related Employment and Support Allowance (ESA);
- Income-based Jobseeker’s Allowance (JSA);
- Income Support.
What if I receive Universal Credit?
If you get Universal Credit, there are some benefits that may make you unqualified to receive Support for Mortgage Interest (SMI). They are:
- If you are self-employed or employed: earnings from your job;
- Statutory Shared Parental Pay;
- Statutory Adoption Pay;
- Any kind of tax refund;
- Statutory paternity, maternity and sick pay.
You may want to earn support for mortgage interest again, or start getting it. To do so, you must stop receiving the benefit in this list. Then, after you have received Universal Credit for 9 consecutive months afterwards, you may earn SMI.
What if I do not earn benefits because my income is too high?
You may have applied for the above benefits but cannot get them. Indeed, this may be because the income that you earn is too high. Then, you will then be treated as earning and eligible for the benefit that you are not receiving. However, you will also still be eligible for support for mortgage interest.
This does not apply to Universal Credit. If you are unable to get Universal Credit because your income is too high, you will not be treated as if earning it.
How to apply for support for mortgage interest
Who you contact to get Support for Mortgage Interest (SMI) depends on what qualifying benefit you receive.
When claiming the benefit, you may receive a form asking for more precise information on your situation. If this is the case, fill it out and send it back. It will very likely increase your chances of getting support for mortgage interest.
If you were previously eligible for SMI but declined it, and later decide to take the loan, the amounts you can earn will be backdated. What this means is you will be able to earn the money you could have got if you applied as soon as you were eligible.
What if I already get a qualifying benefit?
In order to receive Support for Mortgage Interest (SMI), you need to contact the office that pays your qualifying benefit. As said previously, your payments will be backdated to when you were first eligible.
If you receive or have tried to receive Pension Credit, the office you need to contact is the Pension Service. Finally, you may have claimed or tried to claim Universal Credit. In this case, you must contact the Universal Credit helpline.
When will I start getting Support for Mortgage Interest?
You will start getting support for mortgage interest (SMI) after applying. More specifically, in one of the following situation:
- If you are not receiving certain income, after 9 consecutive months of earning Universal Credit;
- After 39 consecutive weeks receiving income-based Employment and Support Allowance (ESA), income-related Jobseeker’s Allowance (JSA) and Income Support;
- At the same time that you start earning Pension Credit.
Additional help with housing costs
You may be starting to go back to full-time work, working more hours or getting more money. If this is the case, you may stop receiving income-related Employment and Support Allowance (ESA), income-based Jobseeker’s Allowance (JSA) or Income Support. If this is the case, you may be eligible to receive Mortgage Interest Run On.
What is Mortgage Interest Run On?
This benefit awards extra money that can be used to cover housing costs. It is awarded in case you do not receive certain benefits any more. It must be because you are going back to full-time work, working more hours or getting more money.
You may earn this benefit for 4 weeks. You will receive it automatically after notifying Jobcentre Plus.
What will I receive with Mortgage Interest Run On?
You may have already been receiving Support for Mortgage Interest (SMI) before your situation changed. If this is the case, you will keep receiving what you were receiving before your circumstances changed.
You will receive payments for your loan or mortgage interest directly. This is instead of your lender receiving it.
Am I eligible for Mortgage Interest Run On?
As said before, there are 3 benefits that you must stop getting to earn this benefit. They are income-based JSA, income-related ESA and Income Support.
The reason why you stop receive these benefits must be because you are going back to full-time work, working more hours or getting more money. However, there are additional conditions. Indeed, you must also:
- Have received the benefit for 26 weeks in a row;
- Expect to be working or receiving more money for at least 5 more weeks;
- You qualified for help on your housing costs before working, and you still have these costs while you begin to work again.
How can I claim Mortgage Interest Run On?
Do you believe that you are eligible for Mortgage Interest Run On? Congrats! You do not need to claim this benefit. If you are eligible, you will simply receive the benefit automatically.
