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Housing

Help with mortgage payments after redundancy

5 min read · Updated 26 May 2026

Universal Credit doesn't usually pay your mortgage capital, but there are still options if you lose your income. Acting early and speaking to your lender is by far the most important step.

Speak to your lender first

Under FCA rules, lenders must offer fair treatment if you're in difficulty. Options can include a payment holiday, a temporary interest-only switch, or extending the term to lower payments. Contacting them early — before missing a payment — gives the best result.

Asking about forbearance options doesn't automatically affect your credit file. Missing payments without arranging anything usually does.

Support for Mortgage Interest (SMI)

If you receive Universal Credit (and meet certain conditions), you may be offered Support for Mortgage Interest. SMI is a loan, not a grant — it helps cover the interest on your mortgage and is repaid with interest when you sell or transfer the property.

There's usually a qualifying period (often three months on UC) before SMI starts.

Breathing Space and debt advice

The government's Breathing Space scheme can pause interest, fees and enforcement on most debts for up to 60 days while you get advice. You access it through a debt adviser — Citizens Advice or StepChange can refer you.

If you're a tenant, not a homeowner

If you rent, the housing element of Universal Credit or Housing Benefit usually helps with rent. See our guide on help with rent after losing your job.

Find out what you may be entitled to

Take the free 15-question check for an indicative view of UK benefits and support that may apply to you. No login, no email required.

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Frequently asked questions

Sources and further reading

Practical next steps

Calm, ordered actions you can take now. Pick the one that fits where you are today.

  1. Start the free benefit check

    Indicative results in about five minutes. No login.

Common situations

People reading this guide often find one of these situations close to theirs.

  • When you rent privately

    How Universal Credit, Local Housing Allowance and Discretionary Housing Payments help private renters after a drop in income.

  • When you own your home

    How Universal Credit, Support for Mortgage Interest and lender help work together for homeowners after job loss.

Related guides

  • Housing

    Help with rent after losing your job

    Universal Credit housing element, Discretionary Housing Payments, Housing Benefit and other UK support that may help you cover rent after losing your income.

  • Redundancy

    What to do after losing your job in the UK

    A calm, practical checklist for the first days and weeks after losing your job in the UK — benefits, bills, debts and support.

  • Redundancy

    What benefits can I claim after redundancy?

    A plain English overview of the UK benefits you may be able to claim if you've been made redundant, including Universal Credit, New Style JSA and help with rent or council tax.