Homeowners in financial difficulties are now able to get support with their mortgage payments after three months, rather than the previous nine months, a change which could prevent them falling into serious mortgage arrears.

The Building Societies Association welcomed the changed to the Support for Mortgage Interest loan, which it has long called for to avoid borrowers falling deep into arrears before the state support kicked in.

Lenders already provide tailored support to those who are struggling, and will continue to do so, but the Support for Mortgage Interest (SMI) loan helps homeowners on certain benefits, by paying the interest on their mortgage.

The zero-earning rule for those on Universal Credit has also been removed, meaning homeowners will not lose their entitlement to SMI as soon as soon as they find any work. Previously this restriction may have discouraged those on lower incomes seeking a return to work.

Paul Broadhead, head of mortgage and housing policy at the Building Societies Association (BSA), said: “This is a common-sense change from the Government. Enabling access to the SMI loan much earlier could well be the difference between a family keeping a roof over their heads or them facing the prospect of their home being repossessed and having to find an alternative, government supported, rental accommodation.

“Also, as SMI is a loan not a benefit, the changes introduced today should not have a long-term financial detriment on Government expenditure.”

Where to find help

Anyone who is worried about their finances and ability to pay their mortgage should first get in touch with their lender or a debt adviser as soon as possible.

They will provide a safe space for a confidential, non-judgmental chat and do everything possible to help each borrower with options based on their own personal circumstances.