Universal Credit Claimants to Get Mortgage Help Sooner
An extra 200,000 Universal Credit claimants can now access faster support for their mortgage bills starting today. This move aims to ease the cost-of-living squeeze on struggling households.
Support for Mortgage Interest Loan Scheme Expanded
- The Support for Mortgage Interest (SMI) loan scheme is extended to cover 200,000 more Universal Credit claimants.
- Claimants can get help with mortgage interest or certain home improvements on properties worth up to £200,000 after just three months on Universal Credit.
- Support will be automatically offered to qualifying claimants—no action needed on their part.
Faster Access and Easier Eligibility
Previously, claimants had to wait nine months of unemployment before accessing SMI loans. Now, thanks to reforms announced in the Chancellor’s Autumn Statement, support kicks in after just three months—and claimants don’t have to be unemployed to qualify. Plus, those who leave Universal Credit but return within six months can re-claim the help.
“The fear of losing your home when you have fallen on difficult times is incredibly stressful and makes getting back on your feet all the more difficult,” said Mims Davies, Minister for Social Mobility, Youth and Progression.
“This increased support is an important lifeline to help provide stability for those who are seeking to find work and move back towards long-term prosperity.”
How the Loans Work
The Department for Work and Pensions (DWP) automatically offers loans to qualifying Universal Credit claimants after three months. The loans cover interest on mortgages or loans for key home repairs and adaptations, including making homes suitable for disabled residents.
Claimants can reject the loan initially but can claim it later if they remain eligible. The loan must be repaid when the property is sold, but no one will be forced to sell to repay the debt. Householders can also ask the DWP to transfer the loan to a new home if needed.
Government Housing Support Ongoing
The government is projected to have spent £28.5 billion supporting renters in 2022/23. The £11.5 billion Affordable Homes Programme will deliver more affordable housing, including tens of thousands of social rent homes.
Additionally, over £1.5 billion has been provided for Discretionary Housing Payments since 2012. Local Housing Allowance rates were boosted during the pandemic and remain high to support Universal Credit claimants.
