Is Support for Mortgage Interest helpful?

BertieBot
BertieBot Online Community Member Posts: 7 Connected
in Benefits and income
Hello
I’ve been getting UC (inc. LCWRA) and PIP for around 18 months. After 9 months on UC I was told I’m eligible for Support for Mortgage Interest (SMI). I decided not to apply because I was on a relatively low fixed rate at the time. That low fixed rate will end soon and mortgage rates are much higher than 5 years ago so I’m considering SMI. But I’m naturally a bit suspicious and I’m worried there might be some hidden downsides to SMI. Is it helpful? Any first hand experiences would be great. 😊 

Comments

  • Albus_Alumni
    Albus_Alumni Scope alumni Posts: 11,423 Championing
    Heya @BertieBot and firstly, welcome!

    I've not read much about SMI, but hopefully me posting this comment will give your post a little bump up the list, so more people will be able to see this and offer more advice. :) 
  • 2oldcodgers
    2oldcodgers Posts: 739 Connected
    woodbine said:
    Its helpful if you need it but remember its now a loan not a benefit as such.
    I agree it is a loan but they add interest to it as well.
    I suppose it helps if you are in danger of losing your home.

    In the past it used to be a benefit and the payments that the DWP made generally far exceeding the monthly instalment. I had it for years and the excess paid by the DWP knocked quite a few thousand off the capital owed.
    Those that rent complained that it wasn't fair so the government changed the system to what it is now.

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