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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.

Updates to this page

From:
Department for Work and Pensions
Published:
25 January 2012
Last updated:
1 April 2026
Show all updates

  1. Removed reference to Income Support and Income Based Jobseeker's Allowance from the 'Support for Mortgage Interest (SMI) Lender’s handbook'

  2. Updated Support for Mortgage Interest (SMI) Lender’s handbook to provide more detail to aid lenders and provide helpful information about the SMI scheme and associated processes for making applications.

  3. Updated the Benefit Payment Systems Group address.

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

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

  6. First published.

Documents

Support for Mortgage Interest (SMI) Lender’s handbook

HTML

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

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