Research and analysis

Support for Mortgage Interest (SMI) loans: take-up

This report explores why take-up of the SMI loan has been lower than the Department for Work and Pensions' initial estimations.

Documents

Support for Mortgage Interest loans: take-up

Support for Mortgage Interest loans: take-up

Details

Research background

SMI provides support for homeowners who qualify for an income-related benefit and are unable to meet their mortgage repayments, due to:

  • illness
  • unemployment
  • a personal crisis
  • another income shock

Initially provided as a benefit, from April 2018, SMI changed to a loan repayable upon sale of the property. SMI benefit claimants were offered the loan in the run up to and following implementation of the conversion to a loan. However, fewer claimants than expected have taken up the SMI loan. We therefore commissioned this research to understand why take-up of the SMI has been lower than anticipated. This research also explores how lenders have responded to the SMI policy change.

Contribution to the evidence base

The latest statistics on uptake of the SMI loan were published on 29 March 2022. This report contributes to the evidence base by identifying the factors that are contributing to low take-up.

Research value

The research has improved our understanding of why people turned down the loan offer, however, there are no findings in the report that indicate a need for major changes to the current policy approach.

Updates to this page

Published 29 March 2022

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