Support for Mortgage Interest Explained

Will Quince MP, DWP minister replied a question in the Houses of Parliament recently.

Over time someone’s house is likely to increase in value, so it is reasonable to expect those who have received taxpayers’ help towards their mortgage to repay from the equity released when the property is sold. However, the repayment of the loan should not be a barrier to people improving their lives. We have considered this and I am pleased to announce that we will be introducing the option for home-owners to defer repayment of their SMI Support for Mortgage Interest loan when moving to a new home. This means that claimants who need to move, for example, because of the changing nature of a disability or for better career opportunities, are not prevented from doing so. These new arrangements require changes to regulations which I will bring forward as soon as the Parliamentary timetable allows.

ABC Note: Those in receipt of Universal Credit may also be entitled to SMI.

 The waiting time for help increased on 1 April 2016 from 13 weeks to 39 weeks. The cost of the benefit was £205 million in 2017. With SMI ending in April 2018, saving the government about £170 million a year, the Department of Work and Pensions is offering a loan, secured on the recipient's property, a move criticised because it would put properties of people on low incomes at risk; the cessation affects about 124,000 people.

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