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Support for Mortgage Interest, usually shortened to SMI, is a government loan that helps some people on certain benefits pay the interest on their mortgage or a loan for essential home repairs. It is not a grant, and it is not a benefit in its own right: it is a loan, and you have to repay it, with interest, usually when you sell the property or otherwise stop owning it.
Because it only covers interest, not your full mortgage payment, and does not clear any arrears, SMI is often only part of a solution rather than a complete answer to mortgage difficulty.
Who can get SMI
SMI is generally available to people receiving certain income-related benefits, such as Universal Credit, Pension Credit, or income-related Employment and Support Allowance. Rules and waiting periods vary between benefits: for example, if you are on Universal Credit, you typically need to have been receiving it for a period before SMI can start. Check the current eligibility rules on GOV.UK before assuming you do, or do not, qualify, since the detail can change and depends on your specific benefit.
You must also have a mortgage or home improvement loan on the property you actually live in. SMI is not available to help with a second home or a buy-to-let mortgage.
Capital you hold, such as savings, can also affect means-tested benefits generally and, in turn, your position, so if you are unsure whether you meet the qualifying conditions for a particular benefit, check the specific rules for that benefit on GOV.UK rather than assuming SMI eligibility follows automatically from receiving any benefit at all.
What SMI covers, and what it does not
SMI can help with:
- interest on your mortgage for your main home
- interest on a loan taken out for certain necessary repairs or improvements to your home
SMI does not cover:
- the capital part of your mortgage repayment, only interest
- mortgage arrears you already owe
- insurance policies linked to your mortgage
- a second home or a rental property
Because arrears are not covered, if you are already behind on your mortgage, SMI on its own will not bring your account up to date. You would still need to agree separately with your lender how any arrears are cleared, for example through mortgage forbearance or a payment arrangement.
How SMI is paid and repaid
If you are awarded SMI, the payment is generally made directly to your mortgage lender rather than to you. It builds up as a loan secured against your home, with interest added, and becomes repayable when you sell the property, transfer ownership, or in some circumstances when you stop receiving the qualifying benefit.
If you move home, it may be possible to transfer the SMI loan to your new property, but this depends on your circumstances and lender. There is no guarantee SMI will be awarded for any particular mortgage or loan, so it is worth checking your eligibility properly rather than assuming it will be approved.
If your qualifying benefit ends, for example because your circumstances change or you move into work, SMI generally stops at the same time, and the loan built up so far still has to be repaid on the usual terms later. It is worth keeping a note of how much has accrued so you are not caught out when you come to sell or remortgage.
| What it is | What it is not | |
|---|---|---|
| Nature of SMI | A government loan, repayable later | A benefit or grant |
| What it pays towards | Mortgage interest only | The capital, arrears, or insurance |
| When it’s repaid | Usually when the home is sold or ownership changes | Not written off |
| Who it’s for | People on certain income-related benefits | Anyone regardless of benefit status |
SMI is a loan, not a quick fix
Because SMI is repayable, it does not reduce what you ultimately owe on your home; it defers part of the cost and adds interest to it. It can still be genuinely useful for keeping up with interest payments during a difficult period, particularly alongside other support, but it is worth thinking of it as a bridge rather than a solution on its own.
If you are struggling more broadly, and not only with mortgage interest, read what to do if you can’t pay your mortgage for the wider range of options, including talking to your lender directly.
Alternatives and other support to consider
- Mortgage forbearance from your lender, such as a temporary reduction in payments or a payment arrangement, alongside or instead of SMI.
- A product transfer, if your current deal is ending and you want to avoid moving to your lender’s standard variable rate. See product transfers with bad credit if adverse credit is also a concern.
- Free debt advice, which can look at your whole budget, not just your mortgage, and help you understand whether SMI is likely to apply to you.
What this means if arrears have already built up
SMI does not clear arrears, so if you already owe missed payments, read how to clear mortgage arrears alongside checking your SMI eligibility. Our hub page on remortgaging with mortgage arrears also explains how lenders generally view current and historic arrears if you later look at remortgaging.
Where to check and apply
Eligibility rules, current qualifying benefits and how to apply are set out on GOV.UK’s Support for Mortgage Interest page, which is the most reliable place to check before relying on SMI as part of your plan. MoneyHelper, StepChange and National Debtline can also help you weigh SMI against your other options for free.
Frequently asked questions
Is Support for Mortgage Interest a benefit?
No. SMI is a loan, not a benefit, even though it is only available to people receiving certain benefits. You repay it, with interest, usually when you sell your home, transfer ownership, or in some cases when you stop receiving the qualifying benefit. It is paid towards your mortgage interest, not to you directly.
Does SMI cover mortgage arrears?
No. SMI only covers ongoing interest on your mortgage or an eligible home improvement loan. If you already owe arrears, you would need a separate arrangement with your lender, such as mortgage forbearance, to bring the account up to date.
Who is eligible for SMI?
Generally, people receiving certain income-related benefits, such as Universal Credit, Pension Credit or income-related ESA, on the mortgage or home improvement loan for the property they live in. Waiting periods and the exact qualifying conditions vary between benefits, so check current eligibility on GOV.UK rather than assuming any particular benefit qualifies automatically.
When do I have to repay SMI?
Usually when you sell your home, transfer ownership, or in some circumstances when you stop receiving the qualifying benefit. It builds up as a loan secured against your home, with interest added each year, so the amount you eventually owe grows the longer it runs.
Can I get SMI and mortgage forbearance at the same time?
Yes, they cover different things and are not mutually exclusive. SMI helps with ongoing interest payments, while forbearance from your lender deals with existing arrears or a wider affordability problem. Many people use both together, alongside free, independent debt advice, to put together a realistic overall plan.