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Support for Mortgage Interest · UK guide

On benefits and struggling with the mortgage? SMI pays the interest.

Last verified 6 Jun 2026 · Source GOV.UK Support for Mortgage Interest (What you'll get + Eligibility) · Publisher CA Capital Limited (company no. 10848369)

Support for Mortgage Interest (SMI) helps homeowners on Universal Credit, Pension Credit and other qualifying benefits pay the interest on up to £200,000 of their mortgage — calculated at 3.66% and normally paid direct to your lender. On the full £200,000 that's £610 a month towards your interest. It's a loan secured on your home, repaid (with interest) when you sell — with no monthly repayments while you need it.

£200,000Mortgage covered (£100k on Pension Credit)
3.66%Current SMI rate
£610/moOn the full £200,000
To lenderPaid direct
Do I qualify? → Behind on payments?

Who qualifies — and when payments start

You can usually get SMI if you receive one of these, with different start points:

  • Pension Credit — payments can start straight away (interest covered on up to £100,000).
  • Universal Credit — after 3 months in a row on UC (up to £200,000).
  • Income Support, income-based JSA, income-related ESA — these older benefits have now closed to new claims and almost everyone has moved to Universal Credit, so in practice the Universal Credit route is the one that applies.
Working? You can still get SMIThe old rule that blocked Universal Credit claimants with any earnings from getting SMI (the “zero earnings rule”) was abolished. A part-time job does not automatically rule you out — if you are still getting Universal Credit and have been for 3 months in a row, ask about SMI. Confirm the current rules on GOV.UK.

How much it pays

The DWP uses a standard rate — currently 3.66% — not your actual mortgage rate. GOV.UK's own example: with £200,000 eligible, you'd get £7,320 a year (£610 a month) towards your interest, paid direct to your lender.

It covers interest only — watch the gapSMI pays nothing off the capital, doesn't clear arrears, and if your actual mortgage rate is higher than the SMI rate there's a shortfall you still need to cover. Check your own numbers and talk to your lender about the difference.

It's a loan — here's the honest picture

  • SMI is secured with a charge on your home, like a second mortgage.
  • You repay what you've received plus interest when you sell or transfer ownership — or you can move the loan to a new property.
  • No monthly repayments while you're receiving it; voluntary repayments are allowed any time.
  • You can stop SMI whenever you want by telling the office that pays your benefit.
Is taking it worth it?For most people the alternative — arrears and possible repossession — costs far more than the loan ever will. Taking SMI to stay secure in your home is usually the calmer financial decision, and free advisers (MoneyHelper, Citizens Advice) can talk your specific case through before you decide.

How to apply

Claim it now — free
How to apply — GOV.UK → 📞 Citizens Advice 0800 144 8848

Have ready: which qualifying benefit you're on — you apply by telling the office that pays it (your UC journal/helpline, or the Pension Service for Pension Credit), then tell your lender you've applied.

  1. Tell the office that pays your benefit you want to apply for SMI — your UC journal/helpline, or the Pension Service for Pension Credit.
  2. They'll send loan paperwork explaining the terms — read it, ask questions, and return it.
  3. Payments then go direct to your lender.
  4. Tell your lender you've applied — it shows you're acting, which matters if arrears are building.

Can't pay the mortgage? Do these now

  • Talk to your lender early — FCA rules require fair treatment: payment holidays, term extensions or interest-only periods may be possible.
  • Apply for SMI if you're on a qualifying benefit.
  • Free debt advice — StepChange 0800 138 1111; mortgage arrears are a priority debt (which debt first).
  • Repossession threatened? Shelter 0808 800 4444 immediately + get advice before any court hearing — courts expect repossession to be a last resort.
  • Run a full benefits check — underclaiming is often part of the squeeze.

Free UK support

  • GOV.UK Support for Mortgage Interest — the official rules + how to apply.
  • MoneyHelper — free, government-backed guidance on mortgage difficulty.
  • StepChange — 0800 138 1111. Free FCA-regulated debt advice.
  • Shelter — 0808 800 4444. Repossession + housing emergencies.
  • Citizens Advice — 0800 144 8848.
Source verification Primary source: GOV.UK Support for Mortgage Interest — What you'll get + Eligibility + Repaying your loan · gov.uk/support-for-mortgage-interest. Last verified 13 July 2026. Confidence: High — £200k/£100k caps, 3.66% rate, £610/mo example and the 3-month Universal Credit qualifying period read directly from GOV.UK (eligibility page). Updated 13 July 2026: GOV.UK no longer sets out a 39-week wait for Income Support / income-based JSA / income-related ESA (those benefits have closed to new claims), and the “zero earnings rule” that once blocked working Universal Credit claimants from SMI has been abolished — so having a job does not automatically rule you out. Key caveat: a secured loan repaid with interest on sale/transfer; interest-only, no arrears cover. Rate note: SMI rate changes periodically — confirm the live rate on GOV.UK before deciding.

Support for Mortgage Interest — common questions

What is SMI?

A DWP loan paying the interest on up to £200,000 of your mortgage (£100,000 on Pension Credit) at a set rate — currently 3.66% — direct to your lender. It doesn't touch capital or arrears; it keeps the interest covered so you can stay in your home.

Who qualifies and when does it start?

People on Universal Credit (after 3 months in a row) or Pension Credit (straight away). Having a job does not automatically rule you out — the old “zero earnings rule” for Universal Credit claimants was abolished. The older benefits (Income Support, income-based JSA, income-related ESA) have closed to new claims, so almost everyone now comes through the Universal Credit route.

Do I have to pay it back?

Yes — it's a loan secured on your home, repaid with interest when you sell or transfer ownership (or movable to a new property). No monthly repayments while you receive it; voluntary repayments allowed; if equity runs out at sale the rest is usually written off.

How much does it pay?

Interest on up to £200,000 at the SMI rate (3.66% now): GOV.UK's example is £7,320/year — £610/month. If your real mortgage rate is higher, you cover the gap.

What if I can't pay my mortgage?

Talk to your lender early (FCA rules require fair options), apply for SMI, get free debt advice (StepChange 0800 138 1111 — arrears are priority debt), and if repossession threatens call Shelter 0808 800 4444 before any hearing.

Sources: Support for Mortgage Interest · GOV.UK (What you'll get — £200,000/£100,000 caps, 3.66% rate, £610/month example, paid direct to lender, waiting periods by benefit; Repaying your loan). Lender fair-treatment rules · FCA mortgage conduct rules. Free help: MoneyHelper · StepChange 0800 138 1111 · Shelter 0808 800 4444 · Citizens Advice 0800 144 8848. SMI rate changes periodically — check GOV.UK for the live figure. Last reviewed: 6 June 2026.

Mortgage pressure on benefits? Ask for SMI before arrears build.

Interest on up to £200,000 covered at 3.66%, direct to your lender, no monthly repayments while you need it. Sorted's "What am I missing?" cross-checks SMI, Council Tax Reduction, Pension Credit and every route that eases the monthly squeeze.

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