Support for Mortgage Interest (SMI) can provide funds to pay off up to £200,000 interest on a loan or mortgage, to help a person secure a deal they otherwise could not afford. The money is paid in the form of a loan and will eventually need to be paid back.
The scheme is open to people on Income Support, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), Universal Credit and Pension Credit.
People on Pension Credit can only get up to £100,000 or if a person started claiming a qualifying benefit before January 2009, and they were below state pension age at the time.
The money cannot be used to pay back the amount a person borrowed, and can only be used to pay off the interest.
The funds can also not go towards paying for insurance policies or missed mortgage payments, known as arrears.
Those who receive Universal Credit cannot get SMI if they get any of the following income:
- Earnings from a person’s job if they are employed or self-employed
- A tax refund
- Statutory Sick Pay
- Statutory Maternity Pay
- Statutory Paternity Pay
- Statutory Adoption Pay
- Statutory Shared Parental Pay.