Mortgage holders may be able to receive separate payments for their housing costs if they also claim universal credit. However, applicants for state benefits may also be able to receive a government loan to help pay mortgage interest.

Eligible applicants are eligible for a Mortgage Interest Support Loan (SMI).

If the loan is granted, the government will end up paying interest up to £ 200,000 on the applicant’s mortgage (or up to £ 100,000 if he has a pension credit.)

This loan can also be used to cover interest on a loan taken out to cover essential repairs or improvements to the home.

In addition, it can also be used to buy an ex-spouse’s share in the household in the event of separation.

READ MORE: Pension and mortgage assets to change following ‘dramatic’ OECD data

Currently there is a 39 week waiting period from when a person can claim the SMI until payment is made according to the Money Advice Service.

If an applicant is doing paid work during this waiting period, the demand will stop and they will have to reapply the next time they are out of work.

The length of time a person can benefit from the SMI will depend on the type of state benefit they also receive.

If the applicant receives a jobseeker’s allowance, he can only benefit from the SMI for a maximum of two years.

Remember that the SMI is a loan and will therefore be associated with interest rate factors.

The loan will accumulate monthly and attract compound interest based on the Office of Budget’s (OBR) responsibility forecast of the “interest rate” (or the interest rate on government bonds).

The interest rate on it will fluctuate and as such it could go up or down during the period that the applicant has the loan.

The minimum amount that can be refunded at any time is £ 100 and DWP will ensure they receive full refunds.

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