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.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
