Changes to Support for Mortgage Interest
In the Chancellor of the Exchequer’s July 2015 budget, it was announced that there would be some changes to the Support for Mortgage Interest (SMI). The SMI provides support with mortgage interest payments for homeowners receiving certain income-related benefits. SMI is currently available after the initial 13 weeks at 100% of eligible mortgage interest on mortgages up to £200,000.00.
However, from 1 April 2016, the SMI waiting period will return to the same length of time it was before the recession, which was 39 weeks. The capital limit will not change from £200,000.00.
In addition, from April 2018, SMI will change from a benefit to a loan. It will be a requirement that the loan will have to be repaid on the sale of the house or when the applicant returns to work.