Support for Mortgage Interest Loan - How much Support for Mortgage Interest Loan will I get?

It can be complicated to work out how much SMI loan you might get. You can use the Turn2us Benefits Calculator which will calculate how much you may be entitled to.

Use the Turn2us Benefits Calculator

In most cases, there is an upper limit on the total amount that can be included in your claim.

• If you get Universal Credit, the upper loan limit is usually £200,000.
• If you get Pension Credit, the upper limit is usually £100,000.

However, if you were getting one of the benefits listed below with an upper limit of £200,000 and then moved to Pension Credit within 12 weeks of that benefit stopping, the higher upper limit continues to apply:

• Income Support
• Income-based Jobseeker's Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)

Interest rates

The interest rate used to calculate SMI is set by the government and can change. The current SMI rate is 3.66%.

Housing costs for loans, whether that is a mortgage, home purchase loan or qualifying home improvement loan, are calculated using a standard rate of interest, not your lender's actual interest rate for your loan. This means that if your interest rate is higher, there may be a shortfall between the help provided and your contractual payment.

There are also restrictions on the help provided if your mortgage or loan was taken out or increased after you became entitled to one of the means-tested benefits which qualify you for Support for Mortgage Interest Loan or if your housing costs are deemed excessive.

What if I have another adult living with me?

If you have other adults living with you who aren’t your partner and do not have to pay rent, they might be treated as your non-dependant. This means that an amount will be taken off your SMI Loan because this other person is expected to help with household costs. This will only apply if you get an SMI Loan because you get Pension Credit. If you get an SMI Loan because you receive Universal Credit, you won’t have money deducted for non-dependants. 

You won’t have money taken off your SMI loan for a non-dependant if:

• You (or your partner) are certified blind or severely sight impaired, or
• You (or your partner) receive:
  • Attendance Allowance,
  • Pension Age Disability Payment,
  • the daily living component of Personal Independence Payment (PIP),
  • the daily living component of Adult Disability Payment Scotland,
  • the care component of Disability Living Allowance (DLA) or Scottish Adult DLA or
  • Armed Forces Independence Payment (AFIP).

You also won’t have any money taken off your SMI loan for any other adult who:

• Is a full time student; or
• Is under 18; or
• Is under 25 and getting Universal Credit with no earnings, or
• Gets Pension Credit 

If money is taken off your SMI loan for another adult, how much is taken off depends on the other adult’s earnings. It is important to make sure the Department for Work and Pensions (DWP) has accurate information about the other adult’s earnings so they can make the right decision about your SMI loan.

How will I be paid Support for Mortgage Interest Loan?

The payment is usually made direct to the lender. 

There are no time limits on how long you can receive the Support for Mortgage Interest Loan, providing you still meet the qualifying conditions.