You may also have SMI pay the interest on a loan you took out to cover: if the loan agreement is not terminated, the payment will be suspended if the applicant ceases: Remember that you need a credit check and that a loan from a credit union, bank or construction credit union will likely have a higher interest rate than the SMI loan. Overall, eligibility for payment of a loan under the IMS remains the same as for payment as a benefit. The loan should normally be repaid if you die, sell your home or transfer the property. Mortgage Interest Assistance (SMI) is a Department of Labor and Pensions (DWP) loan that helps you pay interest on your mortgage or other home loan. If you own the house with someone else such as a friend or family member, they may be forced to accept the loan if they live with you. They do not need to agree if they live elsewhere. Effective April 6, 2018, SMI is granted in the form of a government loan.  Prior to that date, the MIS was paid as part of an applicant`s performance bonus. An SMI loan does not automatically replace SMI power (see below). The categories of loans eligible for the MIS are broader for UC applicants than for applicants with legacy charges or public pension credits. Universal loan applicants can obtain an SMI loan for the following types of payments: It is generally not possible to obtain the MIS for a loan contracted during a period called „relevant period“ during which the person to whom the loan was granted was: applicants should be referred for independent financial advice on whether the loan should be pursued.
A general practitioner or debt advisor may provide information on the consequences of accepting or not accepting a loan, but should not advise on whether the applicant should continue. Other options may be available, such as: If you die and your home goes to your spouse or life partner, the loan can be repaid if they die instead. There is no credit check for SMI credit, and it has no influence on your benefits or credit rating. An applicant must sign a royalty form to secure the SMI credit against the applicant`s home. If the applicant`s partner is a co-owner, he must also sign the form.  This tax is registered in the land registry. If there are co-owners who are not the applicant`s partner, the applicant must sign a reasonable fee for his economic interest in the accommodation.  This tax is not registered in the land registry. Homeowners who receive benefits may have the right to assist at the expense of their owners, including mortgage interest and interest on loans taken out for repairs or improvements. Universal credit applicants may have the right to assist with any secured credit in their home.
Even if you pay interest, it could be cheaper than other ways to borrow money. For example, you can pay more interest if you receive a loan from another location, such as a bank or credit union – or if you change your mortgage payments. If a friend or family member gets a loan for you, they could also pay more interest on their loan. Suppose you will receive $22 per week for interest on your mortgage. The total assistance you received in one year is $1,144 (22 x 52 weeks). This, plus the interest charged to you (currently 1.3%), is the amount of your SMI loan. There are no regular refunds. The loan can be repaid in whole or in part at any time. The minimum amount that can be repaid at the same time is $100 or the remaining balance payable, if it is lower.  Any outstanding loan is due if: interest is added each month to the SMI credit at an interest rate set by the government (which may rise or fall).