Explanatory note

These Regulations provide for the calculation of the tenant’s available annual income and specify the appropriate factor by which it must be multiplied to arrive at the limit which applies under section 133 of the Housing Act 1985 to a mortgage for a tenant buying his home under that Act who has a right to a mortgage.

Regulation 2 provides that the tenant’s available annual income is to be calculated by taking his annual income and deducting from it sums related to his commitments.

Regulations 3, 4 and 5 deal with the method of calculating the amounts to be taken into account as the tenant’s annual income, and regulation 6 provides for the deductions to be made for the tenant’s commitments.

Regulation 7 provides for the acceptance of estimates, and regulation 8 specifies the multipliers to be applied to the tenant’s available annual income to arrive at the mortgage limit.

Regulation 9 revokes the Housing (Right to Buy) (Mortgage Limit) Regulations 1980 with a saving for cases where the tenant’s notice under section 122 of the Housing Act 1985 (tenant’s notice claiming to exercise right to buy) was served before 17th August 1992.

The principal changes made by these Regulations relate to income which is not to be taken into account as the tenant’s annual income (regulation 5(3)) and to the ascertainment of the principal income for the purpose of applying the relevant multiplier (regulation 8).