The government’s decision to convert support for mortgage interest (SMI) from a benefit into a loan has led to the vast majority of recipients abandoning the scheme altogether.

In April 2018, SMI ceased to be a benefit and became a repayable loan administered on behalf of the DWP by SERCO.

However, figures released by the DWP show that the overwhelming majority of claimants have rejected the opportunity to take out a loan.

In total:

77% of claimants contacted by the DWP rejected the offer of a loan

21% have taken out a loan or say that they intend to do so.

2% are still undecided.

One reason that some claimants may have rejected the loan is the experience of people like our member Trevor, who faced repossession proceedings because of the failure of the DWP to make the agreed payments to the mortgage lender under the loan scheme.

You can download the SMI statistics from the .gov website.


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