Support for Mortgage Interest Loan - How much Support for Mortgage Interest Loan will I get?

It can be complicated to work out how much Support for Mortgage Interest Loan (SMI) you might get. You can use the Turn2us Benefits Calculator which will calculate how much you may be entitled to.

You won't get any Support for Mortgage Interest Loan until you have been getting Income Support, income-related Employment and Support Allowance (ESA), or income-related Jobseeker's Allowance (JSA) for nine months or Universal Credit for three months. If you're getting Pension Credit, then there is no waiting period before you can get the Support for Mortgage Interest Loan.

Housing costs for loans, whether that is a mortgage, home purchase loan or qualifying home improvement loan, are calculated using a standard rate of interest, not your lender’s actual interest rate for your loan. This means that if your interest rate is higher, there may be a shortfall between the help provided and your contractual payment.

The interest rate used to calculate SMI is 3.66%.

There are also restrictions on the help provided if your mortgage or loan was taken out or increased after you became entitled to one of the means-tested benefits which qualify you for Support for Mortgage Interest Loan or if your housing costs are deemed excessive.

In most cases, there is also an upper limit on the total loan amount that can be included in your claim. The upper loan limit is usually £200,000 if you claim Income Support, income-based Jobseeker's Allowance (JSA), income-related Employment and Support Allowance (ESA) or Universal Credit. For Guarantee Pension Credit, the upper limit is normally £100,000. However, if you were getting Income Support, Income-based Jobseeker's Allowance or Income-based Employment and Support Allowance with an upper limit of £200,000, and you went on to claim Pension Credit, the higher £200,000 upper limit continues to apply.

What if I have another adult living with me?

If you have other adults living with you who aren’t your partner and do not have to pay rent, they might be treated as your non-dependant. This means that an amount will be taken off your SMI Loan because this other person is expected to help with household costs. This will only apply if you get an SMI Loan because you get JSA, ESA, Income Support or Pension Credit. If you get an SMI Loan because you receive Universal Credit, you won’t have money deducted for non-dependants. 

You won’t have money taken off your SMI loan for a non-dependant if:

• You (or your partner) are certified blind or severely sight impaired, or
• You (or your partner) receive Attendance Allowance, Pension Age Disability Payment, the daily living component of Personal Independence Payment (PIP), the daily living component of Adult Disability Payment Scotland, the care component of Disability Living Allowance (DLA) or Armed Forces Independence Payment (AFIP).

You also won’t have any money taken off your SMI loan for any other adult who:

• Is a full time student; or
• Is under 18; or
• Is under 25 and getting 
  • Universal Credit and isn’t earning anything, or
  • income-based JSA, or
  • Income Support; or
• Gets Pension Credit 

If money is taken off your SMI loan for another adult, how much is taken off depends on the other adult’s earnings. It is important to make sure the Department for Work and Pensions (DWP) has accurate information about the other adult’s earnings so they can make the right decision about your SMI loan.

How will I be paid Support for Mortgage Interest Loan?

The payment is usually made direct to the lender. You can not get help towards the amount you borrowed - only the interest.

There are no time limits on how long you can receive the Support for Mortgage Interest Loan, providing you still meet the qualifying conditions.

Support for Mortgage Interest Loan run-on

If you or your partner enter full-time employment, you might qualify for a Support for Mortgage Interest Loan run-on for four weeks, even though your entitlement to Income Support, income-based Jobseeker's Allowance (JSA) or income-related Employment and Support Allowance (ESA) will stop. This does not apply if you are getting Support for Mortgage Interest with Universal Credit.

You don't have to make a claim. It will be paid automatically once you let Jobcentre Plus know you are starting full-time work.