Support for Mortgage Interest (SMI) is a government benefit that helps pay the interest portion of a mortgage for those who lose their income due to circumstances like accident, sickness, or unemployment. SMI pays interest directly to lenders but only for mortgages up to £200,000 and at a standard interest rate of 3.12%. It starts making payments after 13 weeks currently, increasing to 39 weeks from April 2016, so applicants need a plan to cover payments during the waiting period. SMI provides limited and temporary financial assistance, so recipients should check it will be enough to keep their home. To qualify for SMI, applicants must be receiving another state benefit like Income Support.

1. SUPPORT FOR MORTGAGE INTEREST BENEFIT (SMI)
KEEP A ROOF OVER
YOUR HEAD.
Buying a new home is exciting. But if you were unable to work due to
an accident, sickness or involuntary unemployment, you could lose the
home you worked so hard to get. Our Deadline to the Breadline research
conducted in 2014 shows that without an income, working-age families
in the UK have on average, just 14 days until their money runs out. That’s
why it makes sense to protect your income and keep your home yours.

2. THE FACTS QUESTIONS TO ASK YOURSELF
Helps pay the interest part of your loan or mortgage
not the actual loan itself.
Do you have an interest-only mortgage or a capital
and interest (repayment) mortgage?
Interest support is limited to the first £200,000 of your
mortgage.
Is your mortgage greater than £200,000?
Interest only is paid directly to your lender. Will your lender accept interest-only payments?
How will you pay off the capital?
The money comes in after 13 weeks currently. From
April 2016, payments will start after 39 weeks. Missed
mortgage payments are not paid.
Can you afford to cover your mortgage repayments
for 13 weeks (increasing to 39 weeks from April 2016)?
The standard interest rate used to calculate SMI is
currently 3.12% as at September 2015.
Is your mortgage interest rate greater than this?
COULD YOU KEEP UP WITH THE MORTGAGE REPAYMENTS?
If you experienced unexpected loss of income you may need to find other ways to maintain
your mortgage repayments.
You may qualify for state benefits and support for mortgage interest (SMI) payments may help
with the interest-only element of your mortgage. However, currently, SMI payments normally
start 13 weeks after you apply, pending eligibility, but from April 2016, the waiting period will
increase to 39 weeks. This means you would need to be able to make the mortgage payments
as a minimum yourself for 13 weeks (increasing to 39 weeks from April 2016.) Do you have a
plan in place which could help you do this?
Whilst SMI can help with the interest-only part of your mortgage payments, the benefit only
offers limited financial help. Would it be enough to keep your home? These facts on Support for
Mortgage Interest could help you decide:
SALES AID
Will you qualify for Support for Mortgage Interest?
You must be receiving one of these:
• Income Support
• income-based Jobseeker’s Allowance
• income-related Employment and Support Allowance
• Pension Credit
Ask your adviser about the best way
of protecting your income based on
your individual needs and keep your
home yours.
Legal & General Insurance Limited
Registered in England and Wales number 423930
Registered office: One Coleman Street, London EC2R 5AA
Legal & General Insurance Limited is authorised by the
Prudential Regulation Authority and regulated by the
Financial Conduct Authority and the Prudential Regulation
Authority.
Q53052 09/15