<p>Support for low-income homeowners is provided through the Support for Mortgage Interest (SMI) loans scheme. SMI is available for homeowners who qualify for an income-related benefit and are unable to meet their mortgage repayments. The primary purpose of SMI is to enable people to stay in their homes without fear of repossession. SMI makes a contribution towards the eligible mortgage interest and so provides robust protection against repossession.</p><p> </p><p>From 3rd April 2023, we will extend the support SMI provides by allowing those on Universal Credit (UC) to apply for a loan after three months, instead of nine. We will also abolish the zero earnings rule to extend support to in-work UC claimants and allow existing SMI claimants to move into work and better support themselves.</p><p> </p><p>The interest rate we pay is based on the Bank of England published average and is designed to reflect changes in interest rates by changing when the average varies 0.5 percentage points or more from the rate in payment. The lending industry continue to accept that the rate of SMI we pay may not always reflect the rate of interest charged on the claimant’s mortgage.</p><p> </p><p>In April, we are uprating benefit rates and State Pensions by 10.1%. In order to increase the number of households who can benefit from these uprating decisions, the benefit cap levels are also increasing by the same amount. To further support those who are in work, from 1 April 2023, the National Living Wage (NLW) will increase by 9.7% to £10.42 an hour for workers aged 23 and over - the largest ever cash increase for the NLW.</p>