Guidance

Managed payments to mortgage lenders – information for lenders

Guidance for lenders on taking part in the scheme to pay Support for Mortgage Interest (SMI) direct to qualifying lenders.

From:
Department for Work and Pensions
Published
25 January 2012
Last updated
1 August 2023 — See all updates

Documents

Managed payments to mortgage lenders – information for lenders

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Details

Certain income-related benefits can include help towards mortgage interest payments for homeowners through Support for Mortgage Interest (SMI). We normally make SMI payments direct to the lender.

From April 2018, SMI is paid to customers as a loan, which they will need to repay with interest when they sell or transfer ownership of the home.

We call the process of paying mortgage interest direct to lenders ‘managed payments to mortgage lenders’ (formerly Mortgage Interest Direct).

This guidance explains how lenders take part in the scheme. It includes background information about the legislation.

Information for claimants

See www.gov.uk/support-for-mortgage-interest

Updates to this page

Published 25 January 2012
Last updated 1 August 2023 + show all updates

  1. Updated the Benefit Payment Systems Group address.

  2. Updated contact details for the Benefit Payment Systems Group.

  3. Updated the page to reflect the change in Support for Mortgage Interest being paid as a loan instead of a benefit in April 2018.

  4. First published.

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