DWP Provides £70 Weekly Mortgage Interest Support Loans
The Department for Work and Pensions (DWP) is offering a little-known financial assistance program that provides loans to benefit claimants to help cover mortgage interest payments. These loans are available to individuals receiving Universal Credit, Pension Credit, and Employment and Support Allowance (ESA), with the average weekly payment standing at £70.30 according to the latest DWP figures.
Support for Mortgage Interest Program Details
Currently, approximately 14,500 households are claiming Support for Mortgage Interest (SMI), which allows one member of a benefit-receiving household to obtain a loan for mortgage payments or home improvement loans. In the three months leading up to November 2025, statistics show that 85% of claimants were on Universal Credit, while 12% received Pension Credit.
The SMI program was originally introduced in 2009 as a non-repayable benefit. However, in 2018, under the previous Conservative government, it was transformed into a loan scheme that requires repayment. Take-up of the scheme reached its highest point in May 2019 with 16,471 households participating, then experienced a steady decline before beginning to rise again from 2023 onward.
Current Mortgage Market Context
Recent data reveals that the average mortgage was on the market for just eight days in March – the shortest duration since records began in November 2011. This represents a significant drop from 14 days in February and falls well below the previous record of 12 days set in July 2023.
Market volatility has been primarily driven by repricing in swap rates, which serve as a key benchmark for fixed-rate mortgage pricing and reflect market expectations for future interest rates over 2, 5, or 10-year terms.
Financial Industry Perspectives
Adam French, head of consumer finance at Moneyfacts, commented at the end of March that hopes for affordability returning to 2021 levels had "collapsed" following recent geopolitical developments. Meanwhile, Nicholas Mendes, mortgage broker at John Charcol, noted that after several turbulent weeks, the market appears to be settling somewhat.
"This gives lenders an opportunity to make pricing adjustments without the immediate concern that sudden market fluctuations will disrupt funding costs or service levels," Mendes explained regarding the current mortgage environment.
The DWP's mortgage interest loan program represents a crucial financial lifeline for benefit claimants struggling with housing costs, particularly during periods of economic uncertainty and market volatility.
