Support for mortgage interest under Universal Credit

Support for mortgage interest under Universal Credit

Getting help towards the cost of your mortgage and/or other loans secured on your home.

If you are an owner occupier or in a shared ownership scheme, Universal Credit may help with the interest on a mortgage and/or other loan secured on the property you live in. This is called Support for Mortgage Interest (SMI), and is paid as part of the Housing element.

You may receive SMI if you and/or your partner:

  • have a mortgage and/or loan secured on your property, or make alternative finance payments for the home you live in
  • have been receiving Universal Credit, Jobseeker's Allowance (contribution-based) or Employment and Support Allowance (contribution-based) continuously for 3 assessment periods (3 months)
  • have not had any earned income during that time

The amount of SMI payable

SMI, if payable, will take account of the balance outstanding on the mortgage and/or other loans secured on your property. A standard interest rate is used to work out the amount you may get, not your actual interest rate. From 18th June 2017 this is 2.61% (previously it was 3.12%).

Help is available for mortgages or loans secured on your property up to a total maximum of £200,000. You may also get help with the actual costs of any eligible Service Charges.

Any mortgage or loan specifically used for adaptations to your property will not count towards the £200,000 maximum, as long as these adaptations are to meet the needs of a disabled person in the benefit unit (household).

Providing information

If you and/or your partner do have mortgage(s) or other loans secured on your home, you will be asked for details of these.

Universal Credit will then contact all your mortgage lenders or loan providers to confirm the details you have given.

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