An additional 200,000 Universal Credit claimants will now have access to quicker support with their mortgage, as the Government has extended the Support for Mortgage Interest loan scheme.
The scheme provides help towards mortgage interest on a home or certain home improvements worth up to £200,000, after three months on Universal Credit.
Mims Davies, minister for social mobility, youth and progression, said: “This increased support is an important lifeline to help provide stability for those who are seeking to find work and move back towards long-term prosperity.
“The fear of losing your home when you have fallen on difficult times is incredibly stressful and makes getting back on your feet all the more difficult.”
The loans are designed to assist claimants with the interest on mortgages or loans for certain home improvements, such as repairs or adaptations for people with disabilities, whilst they are on Universal Credit.
Claimants who qualify for the Support for Mortgage Interest loan scheme will be automatically offered support by the Department for Work and Pensions (DWP) after three months on Universal Credit.
The extended support is part of the Government’s efforts to help more households with the cost of living.
Claimants no longer need to have been unemployed for nine months before accessing the loan.
The loan needs to be repaid when claimants sell their home, but no one will be asked to sell their home in order to repay it. If needed, claimants can contact the DWP about transferring the loan to a new home.
The UK government has also provided extensive support for renters, including projected spending of £28.5bn in 2022/23, as well as the Affordable Homes Programme, worth £11.5bn, which will deliver more affordable homes across the country, including tens of thousands for social rent.
