Support for mortgage interest payments

This content applies to England only.

Housing laws vary between England and Scotland. Get advice relating to Scotland

Support for mortgage interest (SMI) may help with your mortgage interest payments and interest on loans taken out for repairs or improvements if you are claiming certain benefits. Find out who can claim.

Who can claim support for mortgage interest (SMI)

You can probably claim support for mortgage interest (SMI) if you (or your partner) are claiming any of the following qualifying benefits:

Claiming for help with interest on other loans

You may also be able to get payments towards the interest on loans you took out for:

essential repairs or improvements to your home (for example for insulation, repairing dangerous faults or adapting your home if someone in your household is ill or disabled)
buying your ex-partner's share in your home if you have separated.

You won't get help to pay off the loans themselves. Loans for essential repairs or improvements may be covered even if you take them out after you claim a qualifying benefit.

How long to wait before help starts

People over the age of 60 who are claiming pension credit are entitled to help immediately but there are waiting periods for everyone else.

If you are eligible because you are claiming income support, income based jobseeker's allowance or income related employment and support allowance, payments normally start 13 weeks after you started claiming - this waiting period may be reviewed by the Government from January 2013.

How percentage rate is used to calculate payments

SMI is paid at the level of the Bank of England’s published Average Mortgage Rate - currently 3.63 per cent. It will only be adjusted in future when the published average mortgage rate differs by 0.5 per cent or more.

How much of a mortgage is covered

It may be possible to claim help with interest payments on loans up to a value of £200,000, or £100,000 if you are receiving pension credit.

If you were claiming SMI as part of another means tested benefit in the 12 weeks before you claimed pension credit, you may still be able to claim help on loans up to £200,000.

You can't apply for any benefits to cover the capital you originally borrowed or any investment that is linked to your mortgage (such as an endowment policy, pension or ISA). You can ask your lender for a statement of your mortgage costs and how much of what you pay is interest.

However, if you got your mortgage after you started claiming benefits, you may not be eligible. If you already had your mortgage, but increased it after you started claiming, you will only get interest payments on the amount you originally borrowed.

Reducing payments

If your home is considered to be more expensive or larger than you need, any payments you receive may be reduced. If you are told that deductions will be made - get advice. It may be possible to show that it is not reasonable to expect you to move somewhere smaller or cheaper.

If you are separated and it is possible for you to receive some help with mortgage payments from your ex-partner or spouse, you will need to talk to an adviser to check how these payments should be made. They may affect the amount of benefit you are entitled to.

How to claim support for mortgage interest (SMI)

You can claim support for mortgage interest at your local office of Jobcentre Plus or the Pension Service.

When you apply for income support, income based jobseeker's allowance or pension credit, you will need to include information about your mortgage and housing costs in order to get the extra payments. You will have to provide proof of your income, details of your financial situation and any related paperwork. Your lender will have to complete some of the forms confirming the details of your loan.

If you are already receiving these benefits but are not getting any extra payments towards your housing costs, contact your local Jobcentre Plus office or the Pension Service and ask them to send you a form.

How support for mortgage interest (SMI) is paid

Payments are usually made at the end of every four weeks, along with your other benefits. This is the case even if your mortgage payments are due on a monthly basis, so you may appear to be behind with payments.

If you are receiving jobseeker's allowance and you claimed after 5 January 2009, you will only be able to claim help with housing costs for up to two years. There is no time limit if you claimed before that date or are receiving income support, pension credit or income-related employment and support allowance.

Housing benefit and support for mortgage interest (SMI)

Housing benefit only covers rent payments, so you can't claim housing benefit to pay your mortgage. However, if you bought your home through a shared ownership scheme, you may be able to get housing benefit to help pay the rent on the share you do not own.

Get help and advice

If you need help with your claim your local Shelter advice centre or Citizens Advice may be able to help. Many of our local services have advisers specialising in welfare benefits issues as well as housing. Use our directory to find services in your area.