There is governmental help to deal with imminent repossession or an inability to pay off mortgages that some people can fall back on, specifically those who are already receiving benefits off the government.

The help on offer from the state is liable to change though, so a cemented MPPI would be better due to its reliability, and it will likely pay out more than the government schemes can.

Mortgage Payment Protection Plan

Support for Mortgage Interest (SMI)

SMI is aimed at helping people who already have income related benefits off the government, and can help pay off the interest of a mortgage or loans taken out to pay for repairs to your home.

However, SMI is usually paid to the lender directly so you would not actually see any of the money personally.

Also, it specifically only pays the interest gathered while the household income is suffering. It does not pay off any of the capital borrowed. It effectively puts the mortgage on pause while the beneficiary finds their feet again.

What Support for Mortgage Interest offers

SMI can help pay up to £200,000 interest of a home repair loan or mortgage if any of the following are applicable:

  • You receive Income Support
  • You receive Income-based Job Seeker’s allowance (the SMI will pay for 2 years only)
  • You receive Employment and support allowance

SMI can help pay off up to £100,000 interest of a home repair loan or a mortgage if:

  • You receive Pension Credit

What Support for Mortgage Interest does not Cover

  • The amount you borrowed
  • Any payments toward insurance policies you may have
  • Mortgage arrears

Claiming Support for Mortgage Interest

You need to contact your Jobcentre Plus or the Pension Service, whichever is applicable to you.

Mortgage Interest Run On

Beneficiaries who manage to find work again can still continue to claim SMI for a period of four weeks after their income benefits stop due to an increase in income. This is called Mortgage Interest Run On.

In order to receive the Run On, you must:

  • Have been claiming the benefit for at least 26 consecutive weeks
  • Still have to pay the same payouts as you did when you were on the benefits
  • Expect the income boost to last 5 weeks or more

Mortgage Rescue Scheme

This is a last resort attempt to keep mortgage holders of priority need in their homes when they are in imminent danger of being rendered homeless. Upon registering with your local council, they will arrange for you to meet a financial advisor and to get an assessment of the property.

You can also get either of two forms of financial help. Both involve a Registered Social Landlord (RSL) which is an independent housing association or organisation.

Mortgage Rescue Equity Loan

An equity loan is given by the RSL. They help to reduce the mortgage payments to a manageable sum with an interest only loan.

Mortgage Rescue to Rent

In this version, the RSL pays off your mortgage and so then owns a share of your home. You then pay rent to them. Through this method though, you will most likely no longer be the home owner. The rent is at roughly 20% less than the average rate for your area as this is likely to be cheaper than the mortgage payments you were paying before.

Eligibility for Mortgage Rescue Schemes

The household needs to have a priority need. This means the household needs either

  • someone with dependent children
  • someone who is pregnant
  • someone who suffers from a physical or mental disability
  • someone who is vulnerable due to old age

There are also some additional criteria, including:

  • the household has an annual income of under £60,000
  • the homeowners do not own a second home
  • the mortgage value is between 75% and 120% of the property value

You should contact your local council to find out whether you are eligible for sure.

In London, this scheme is no longer available as of October 2013, which was cut short from the rest of the scheme which closes to applicants in March 2014.

You must also contact your local council in order to claim.

Mortgage Calculator

Equity Loan Mortgage Calculator

Whether you're a first-time buyer or already a property owner you could buy a new home with a small deposit of 5%, heres how.

How Help to Buy Equity Loans Work

  • First time buyers and those already on the property ladder can apply.
  • To qualify a 5% deposit is required.
  • A 75% mortgage must be secured from your bank or building society.
  • The remaining 20% of the property’s value is funded by an equity loan provided by the Government.
  • House prices can’t be more than £600,000 in England and £300,000 in Wales.



House Price





Min (5% of house price)£2,500


Max (30% of house price)£15,000

Interest Rate





Min25 Years

30 Years

Max35 Years

Without Help to Buy

Your deposit£2,5005%
Your mortgage£47,50095%
Monthly Payment£213.30 

With Help to Buy

Your deposit£2,5005%
Help to Buy Loan£10,00020%
Your mortgage£37,50075%
Monthly Payment£168.39 

This calculator is provided to give you basic guidance only. This information is computer-generated and relies on certain assumptions. It has only been designed to give a useful general indication of costs. Its important you always get a specific quote from the lender and double-check the price yourself before acting on the information. We cannot accept responsibility for any errorsand recommend that you obtain exact figures from a specific lender before committing to any mortgage.