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SMI – what it is and who can get it

You may get help with mortgage interest payments as part of your benefits, if you are a homeowner and are getting:

• Income Support
• income-based Jobseeker’s Allowance
• income-related Employment and Support Allowance
• Pension Credit

You will only get help towards mortgage interest payments for a mortgage or loan to buy or improve your home. SMI is normally paid directly to your lender. There is no guarantee that you will get SMI for a loan you take out.

SMI - what's not included

SMI cannot help you pay:

• the amount you borrowed (only interest on the mortgage is paid)
• anything towards insurance policies you have
• mortgage arrears

How SMI is calculated

The standard interest rate used to calculate SMI is currently 3.63 per cent.

From 1 October 2023 the standard interest rate is set at a level equal to the Bank of England’s published monthly average mortgage interest rate. The starting rate that applies from 1 October 2023 is 3.63 per cent (the rate published by the Bank of England on 31 August 2023).

SMI – excess payments

Some homeowners may have actual interest rates that are lower than the standard rate used to calculate SMI payments. This means they receive more SMI than required to meet the payments due to their lender. These payments can only be credited to their mortgage account.

Claiming benefit and getting your questions answered

Contact Jobcentre Plus or The Pension Service to:

• check your eligibility
• ask any questions about this help that you may have
• ask for the leaflet IS8 'Home owners – help with housing costs'

• Contact Jobcentre Plus

• Contact The Pension Service

Changes to SMI

Changes to SMI rules have applied from 5 January 2009.

Different rules applied to SMI up to 5 January 2009. If you got help to make mortgage interest payments before this date, you will continue to get the same level of help.

Rules that apply to SMI since 5 January 2024

From 5 January 2024 if you were getting income-based Jobseekers Allowance, Income Support or income-related Employment and Support Allowance, most claims for SMI came under new rules including:

• waiting 13 weeks from the date you claim before you get SMI (this is known as a waiting period and was previously 39 or 26 weeks)
• being able to claim for mortgage interest on up to £200,000 of your mortgage (this was previously £100,000)
• getting paid SMI for up to two years only if you are getting income-based Jobseeker’s Allowance

There is no limit to how long you can get SMI if you are getting:

• Income Support
• income-related Employment and Support Allowance
• Pension Credit

• Contact Jobcentre Plus

• Contact The Pension Service

Two year time limit to SMI

A two year time limit to SMI for new claimants getting income-based Jobseeker's Allowance was introduced from 5 January 2009.

This affects some people from 5 January 2011. If you have received SMI for two years from 5 January 2024 or later, you will no longer receive help with your mortgage interest. This will apply if you have been getting SMI continually or through linked benefit claims.

It is important that you talk to your lender about this change. Lenders are required to treat people fairly, and must consider what they can do to prevent borrowers losing their homes.

If you can't meet your mortgage repayments, or you are worried you might fall behind, you must contact your lender as soon as possible. You can also get independent advice from other organisations. Further information about mortgage arrears or payment difficulties can be found using the following link.

• Mortgage arrears or payment difficulties

You can also get mortgage payment advice from the National Homelessness Advice Service (NHAS).

• National Homelessness Advice Service Opens new window

If you claim Pension Credit - conditions that apply to SMI

If you claim Pension Credit, and you want help towards mortgage interest payments, you will:

• have no waiting period before you receive help with mortgage interest payments
• be able to claim for mortgage interest on up to £100,000 of your mortgage

If you have questions about SMI contact The Pension Service.

• Contact The Pension Service

Moving to Pension Credit from other benefits

If you are already getting SMI under the rules that apply from 5 January 2009, you can continue to get help with your mortgage interest on up to £200,000 of your mortgage, if you move on to Pension Credit within 12 weeks of ending a claim for:

• Income Support
• income-based Jobseeker’s Allowance
• income-related Employment and Support Allowance

You can continue getting the same amount of help with your mortgage interest, if you remain entitled to Pension Credit.

Mortgage Interest Run On

You may get an extra four weeks money towards paying your housing costs, if your Income Support, income-based Jobseeker’s Allowance, or income-related Employment and Support Allowance is going to stop because you are about to:

• return to work
• work more hours
• earn more money

This is called the Mortgage Interest Run On.

Find out if you qualify for the Mortgage Interest Run On by using the link below.

• Mortgage Interest Run On

Information leaflet from Jobcentre Plus

Find out more about help with housing costs using the following link.

• Download 'Housing and heating costs' (PDF, 1152K)

• Help with PDF files Opens new window

More useful links

• Income Support

• Jobseeker's Allowance

• Employment and Support Allowance (disabled people)

• Pension Credit (pensions and retirement planning section)

• Financial support (disabled people section)