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Mortgage Advisor & Director
Can you get help with your mortgage on Jobseekers Allowance?
Yes, if you are receiving Jobseekers Allowance, you may be able to get help towards the interest on your mortgage or other loans for home purchase, home improvements or repair.
What is the Support for Mortgage Interest loan?
The Support for Mortgage Interest (SMI) Loan is designed to help people on certain benefits or in certain situations to receive financial support towards paying the interest on their mortgage or home-related loan.
You are typically not eligible to receive the SMI Loan until you have been receiving Jobseeker's Allowance - or another qualifying benefit - for nine months. For pension credit, you'll start receiving SMI payments immediately.
Will I pay interest on my Support for Mortgage Interest loan?
Yes, you will pay interest on the SMI Loan, which is currently set at a rate of 0.3%.
Is there a limit for the Support for Mortgage Interest Loan?
There is an upper limit on the total loan amount that you can claim for.
For Jobseekers Allowance, the upper limit is usually £200,000, and there are no limits on how long you can continue to claim for as long as you still qualify. You should know that you only receive help towards the interest part of your loan; not the amount borrowed.
How is the Support for Mortgage Interest Loan paid?
SMI payments are typically made directly to your lender.
The interest rate used is not the same as on your mortgage and is a standard rate that applies to all applicants under the scheme.
This means that there may be a gap between the support payment provided and amount you need to pay to your lender. The current rate used to calculate how much SMI you receive is 2.09%.
When it comes to repaying your loan, this is done when you either sell or transfer ownership of your home. The interest rate charged changes no more than twice a year, and the current rate is 0.3%. If there is not enough money left to repay the SMI in full after repaying your mortgage and any other loans secured against your home, you will pay what you can and the rest of the loan will be written off.
You can also make voluntary repayments to pay the loan back more quickly and avoid interest.
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Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
Last updated 29 February 2024