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Autumn Statement 2022: SMI wait period reduced to three months

  • 17/11/2022
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Autumn Statement 2022: SMI wait period reduced to three months
The wait period for the Support for Mortgage Interest (SMI) scheme will be lowered from nine months to three months in a move to help mortgage borrowers.

In the Autumn Statement, Chancellor Jeremy Hunt (pictured) confirmed that those on Universal Credit can now apply for a loan to help with interest repayments after three months, instead of nine.

Hunt added that the zero earnings rules would be abolished so claimants can continue to receive support while in work and on Universal Credit.

The reforms will come into force in Spring next year.

The government said that the move would help support mortgage borrowers with rising interest rates.


What is SMI?

SMI is a loan to help pay the interest on a mortgage or other home loans. It will help pay interest on up to £200,000 of your loan or mortgage subject to certain conditions, and the interest rate used to calculate SMI is 2.09 per cent and the interest added to the loan is 1.4 per cent.

The loan is repaid with interest when a property is sold or if you’ve transferred ownership of your home.

In order to be eligible, one has to be on income support, income-based jobseeker’s allowance, income-related employment and support allowance, Universal Credit or pension credit.

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