calculations for smi

dave030445

Can someone please tell the me calculation you use to work out how much smi you will receive.
many thanks dave

bll78

Hi,
These are the rules https://www.gov.uk/support-for-mortgage-interest/what-youll-get
To work out what you'll get this is the link to the calculator, without knowing your age, what you owe, what your eligible benefit is this is all I can give you,
http://www.entitledto.co.uk/

lld01

3.63% mutiplied by the allowable balance divided by 52 will give you the weekly figure
Its paid 4-weekly in arrears to the lender

The allowable balance is normally the outstanding amount of the original house purchase borrowing. There may be some additional allowed for certain home repairs. Its restricted to a max of £200k unless you are on pension credit, then it is £100k

dave030445

lld01 wrote: »

3.63% mutiplied by the allowable balance divided by 52 will give you the weekly figure
Its paid 4-weekly in arrears to the lender

The allowable balance is normally the outstanding amount of the original house purchase borrowing. There may be some additional allowed for certain home repairs. Its restricted to a max of £200k unless you are on pension credit, then it is £100k

thats it great thanks

dave030445

lld01 wrote: »

3.63% mutiplied by the allowable balance divided by 52 will give you the weekly figure
Its paid 4-weekly in arrears to the lender

The allowable balance is normally the outstanding amount of the original house purchase borrowing. There may be some additional allowed for certain home repairs. Its restricted to a max of £200k unless you are on pension credit, then it is £100k

Um can't seem to be able to work it out

lld01

dave030445 wrote: »

Um can't seem to be able to work it out

What are you trying to work out exactly? Have you been awarded SMI and you are trying to work out how they have come to a figure? Or are you trying to work out potential entitlement?

bll78

Use the calculate in my first post it will calculate your total claim and if you click on the boxes at the bottom give you the detail of the split.

dave030445

lld01 wrote: »

What are you trying to work out exactly? Have you been awarded SMI and you are trying to work out how they have come to a figure? Or are you trying to work out potential entitlement?

Hi iam trying to prepare if the worst happens how much help i will get towards paying the mortgage if I have to claim SMI.

Morlock

dave030445 wrote: »

Hi iam trying to prepare if the worst happens how much help i will get towards paying the mortgage if I have to claim SMI.

That depends on how much your mortgage is and what interest rate you are paying. Generally, SMI pays 3.63% of mortgage interest, if your mortgage interest rate is lower than 3.63%, the excess will pay off outstanding capital.

Some further details here:

https://www.gov.uk/support-for-mortgage-interest/overview

lld01

dave030445 wrote: »

Hi iam trying to prepare if the worst happens how much help i will get towards paying the mortgage if I have to claim SMI.

SMI will generally only help with the original house purchase borrowing.

If you have remortgaged and borrowed extra, unless this was for certain home improvements, you will not get help with it.

How much did you borrow originally?
How much do you owe know?

Example on £100k as its a nice round figure
£100000.00 x 3.63% = £3630.00 annual interest
3060 / 52 = £69.81 per week
So £279.23 paid every 4 weeks to the lender.

dave030445

Got it great thanks. still quite a big shortfall.