SMI or Support for Mortgage Interest is a loan paid by the government to your mortgage lender in order to help qualifying applicants to pay all or part of the interest accruing on their mortgage during times when they are unable to do so.
In order to qualify for SMI, applicants will normally already be in receipt of another qualifying benefit. You can eligible to apply for this loan:
You might still be able to get SMI if you apply for one of the qualifying benefits but cannot get it because your income is too high. You’ll then be treated as getting the benefit you applied for.
The interest covered is currently assumed to be 2.61% of the mortgage sum and the interest you will pay on the SMI loan is currently 1.3%. This may vary but will not change more than twice per annum. You’ll need to repay the money you get with interest when you sell or transfer ownership of your home. You can also make voluntary payments beforehand if you wish.
SMI is capped at interest on a sum of £200,000 if you are working or £100,000 for pensioners or you started claiming another qualifying benefit before January 2009.
Yesterday
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
11 days ago
Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.
The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.
18 days ago
Lloyds Banking Group has jumped on the bandwagon to boost lending for first-time buyers as they allocate an additional £4 billion to help first-time buyers on to the property ladder.
As the Loan to Income (LTI) cap has been increased to 5.5 times income, applicants who fit the First Time Buyer Boost criteria could borrow up to 22% more.
The government is introducing mortgage reforms to boost homeownership, stimulate economic growth, and make the housing market more accessible, especially for first-time buyers.
Chancellor Rachel Reeves has announced the most significant mortgage reforms in over a decade—great news for those dreaming of homeownership.
21 days ago
Nationwide ease their ‘Helping Hand’ mortgage designed to help first-time buyers get onto the property ladder by allowing them to borrow up to six times their income.
27 days ago
Keeping the kids entertained over the six-week summer holidays isn’t always easy, especially with the cost-of-living making it even more difficult. Below is a list of fun, inexpensive ideas to do over the break