If you’re struggling with service charges or mortgage interest payments, Universal Credit may offer financial support. This guide explains the eligibility criteria, types of service charges covered, and how Support for Mortgage Interest (SMI) can help you manage your housing costs.
Who Can Get Help with Service Charges?
You may qualify for Universal Credit support to help with service charges if all the following conditions apply:
- You are eligible for Universal Credit.
- You or your partner own the home you live in. This includes shared ownership properties.
- You live in a leasehold property.
What Service Charges Are Covered?
Universal Credit may help cover service charges for:
- Shared facilities – Costs related to rubbish collection, communal lifts, and shared areas.
- Window cleaning – Specifically for upper floors in apartment buildings.
- Repairs and maintenance – Costs for essential building upkeep.
This financial support is designed to help leasehold property owners manage unavoidable housing costs.
Support for Mortgage Interest (SMI)
If you’ve been receiving Universal Credit for at least three months in a row, you may be eligible for Support for Mortgage Interest (SMI).
What Is SMI?
SMI is a loan, not a grant, that helps cover interest payments on:
- Your mortgage
- Loans taken out for specific home repairs and improvements
How Much Can You Get?
If you qualify for an SMI loan, you can get help paying the interest on up to £200,000 of your mortgage or loan. The amount you receive is based on a set interest rate and is paid directly to your lender.
Repaying the SMI Loan
Since SMI is a loan, you must repay it with interest when you:
- Sell your home
- Transfer ownership of your home
- Move the loan to another property
This means the loan remains until your property changes hands, ensuring that homeowners only repay when they have access to funds from a sale or transfer.
Eligibility for Service Charge Assistance
To get help paying for your service charges through Universal Credit, you must meet these requirements:
- You own a leasehold property.
- You have been receiving Universal Credit for at least nine months.
Who Cannot Get Help with Service Charges?
You cannot receive help with service charges if you earn an income from:
- Employment (either salaried or self-employed work)
- A tax refund
- Statutory payments, including:
- Statutory Sick Pay (SSP)
- Statutory Maternity Pay (SMP)
- Statutory Paternity Pay (SPP)
- Statutory Adoption Pay (SAP)
- Statutory Shared Parental Pay (ShPP)
These exclusions mean that if you’re earning or receiving statutory benefits, you won’t be eligible for additional service charge assistance.
Universal Credit can provide financial support for homeowners struggling with service charges and mortgage interest. If you own a leasehold property and meet the eligibility criteria, you may receive help with maintenance costs and shared facilities. Similarly, Support for Mortgage Interest (SMI) can assist with mortgage interest payments, but it is a loan that must be repaid when you sell or transfer your property. If you think you might qualify for these benefits, consider checking with Universal Credit for more details on your eligibility.
FAQ’s
Can Universal Credit help with my service charges?
Yes, if you own a leasehold property, have been on Universal Credit for at least nine months, and meet the eligibility criteria, you may receive support.
What type of service charges does Universal Credit cover?
Universal Credit can help pay for shared facilities, window cleaning of upper floors, and maintenance or repair costs in leasehold properties.
What is Support for Mortgage Interest (SMI)?
SMI is a loan that helps homeowners cover mortgage interest payments or home improvement loans. It must be repaid when you sell or transfer your property.
How much mortgage interest can SMI cover?
SMI can help cover interest on up to £200,000 of your loan or mortgage. The amount is based on a fixed interest rate and is paid directly to your lender.
Do I have to repay the SMI loan?
Yes, the SMI loan must be repaid with interest when you sell or transfer ownership of your home, unless you move it to another property.
Who is not eligible for service charge assistance?
You cannot get Universal Credit support for service charges if you earn income from employment, self-employment, a tax refund, or certain statutory payments (such as Sick Pay or Maternity Pay).
How do I apply for Universal Credit support for service charges?
You can apply through the UK government’s Universal Credit portal or contact the Department for Work and Pensions (DWP) for guidance.