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The Loans for Mortgage Interest Regulations 2017

S.I. 2017/725 · Made 5 July 2017

Up to date with all changes known to legislation.gov.uk, revised to 3 April 2023.

Social Security

Made 5th July 2017

Laid before Parliament 6th July 2017

Coming into force in accordance with regulation 1(2)

The Secretary of State, in exercise of the powers conferred by sections 4(5), 35(1), 36(2) and (4) of the Jobseekers Act 1995f1, sections 2(3)(b) and sections 17(1) and 19(1) of the State Pension Credit Act 2002f2, sections 123(1)(a), 135(1), 137(1) and (2)(d) and 175(1), (3) and (4) of the Social Security Contributions and Benefits Act 1992f3, sections 4(2)(a), 24(1) and 25(2), (3) and (5)(a) of the Welfare Reform Act 2007f4, sections 11(3) and (4) and 42(1), (2) and (3)(a) of, and paragraph 1(1) of Schedule 6 to, the Welfare Reform Act 2012f5 and sections 18, 19 and 21 of the Welfare Reform and Work Act 2016f6, makes the following Regulations.

This instrument contains only regulations made under, by virtue of, or consequential upon, sections 18, 19 and 21 of the Welfare Reform and Work Act 2016 and is made before the end of the period of 6 months beginning with the coming into force of those sections. Therefore, in accordance with section 173(5) of the Social Security Administration Act 1992f7, these Regulations are not required to be referred to the Social Security Advisory Committee.

Annotations to the whole text

Footnotes

f1

1995 c. 18. Section 35(1) is cited for the meaning of “prescribed” and “regulations”. Section 36(4) was amended by paragraph 63 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 9).

f2

2002 c. 16. Section 17(1) is cited for the meaning of “prescribed” and “regulations”. Section 19(1) applies section 175(1), (3) and (4) of the Social Security Contributions and Benefits Act 1992 (c. 4) to regulations under the State Pension Credit Act 2002.

f3

1992 c. 4. Section 137(1) is cited for the meaning of “prescribed”. Section 175(1) and (4) was amended by paragraph 29(2) and (4) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999.

f4

2007 c. 5. Section 24(1) is cited for the meaning of “prescribed” and “regulations”.

f5

2012 c. 5.

f6

2016 c. 7.

f7

1992 c. 5.

Contents

  1. 1Citation and commencement
  2. 2Interpretation
  3. 3The offer of loan payments
  4. 4Acceptance of loan payments offer
  5. 5Conditions to meet before the loan payments can be made
  6. 6Information condition
  7. 7Time of each loan payment
  8. 8Period covered by loan payments
  9. 9Duration of loan payments
  10. 10Calculation of each loan payment
  11. 11Calculation in respect of qualifying loans
  12. 12Calculation in respect of alternative finance payments
  13. 13Standard rate to be applied under regulations 11 and 12
  14. 14Non-dependant deductions
  15. 14AInsurance payment deduction
  16. 15Interest
  17. 16Repayment
  18. 16ATransferring the loan between properties
  19. 17Direct payments to qualifying lenders
  20. 18Consequential amendments
  21. 19Transitional provision: loan offer made before 6th April 2018
  22. 19ATransitional provision: loan offer made on or after 6th April 2018
  23. 20Transitional provision: persons who lack capacity or may lack capacity identified before 6th April 2018
  24. 21Transition from legacy benefit to universal credit
  25. 22Delegation
  26. Signature
  27. Schedule 1: Meaning of owner-occupier payments
  28. Part 1: Legacy benefit claimants and SPC claimants
  29. 1Application of Part 1
  30. 2Payments of interest on qualifying loans and alternative finance payments
  31. 3Loans incurred during relevant period
  32. Part 2: UC claimants
  33. 4Application of Part 2
  34. 5Payments of interest on loans and alternative finance payments
  35. Schedule 2: Circumstances in which a claimant is, or is to be treated as, liable to make owner-occupier payments
  36. Part 1: Legacy benefit claimants and SPC claimants
  37. 1Application of Part 1
  38. 2Liable or treated as liable to make payments
  39. 3Treated as not liable to make payments
  40. Part 2: UC claimants
  41. 4Application of Part 2
  42. 5Liable or treated as liable to make payments
  43. 6Treated as not liable to make payments
  44. Schedule 3: Circumstances in which a claimant is, or is to be, treated as occupying accommodation
  45. Part 1: General
  46. 1Interpretation
  47. Part 2: Legacy benefit claimants and SPC claimants
  48. 2Application of Part 2
  49. 3Occupying accommodation: general rule
  50. 4Full-time study
  51. 5Living in other accommodation during essential repairs
  52. 6Living in other accommodation due to fear of violence, where a claimant’s partner is a full-time student or where moving into new accommodation
  53. 7Moving in delayed for certain reasons
  54. 8Temporary absence to try new accommodation of up to 13 weeks
  55. 9Temporary absence of up to 13 weeks
  56. 10Absences for certain reasons up to 52 weeks
  57. Part 3: UC claimants
  58. 11Application of Part 3
  59. 12Occupying accommodation: general rule
  60. 13Living in other accommodation due to essential repairs
  61. 14Moving homes: adaptations to new home for disabled person
  62. 15Living in other accommodation due to fear of violence
  63. 16Moving in delayed by adaptations to accommodation to meet needs of disabled person
  64. 17Moving into accommodation following a stay in hospital or care home
  65. 18Temporary absence exceeding 6 months
  66. Schedule 4: Direct payments to qualifying lenders
  67. 1Direct payments
  68. 2Determining the amount to be paid to a qualifying lender: one or more qualifying loans
  69. 3Determining the amount to be paid to a qualifying lender: more than one qualifying loan Repealed
  70. 4Qualifying lenders to apply direct payments to discharge of claimant’s liability
  71. 5Application by qualifying lenders of any amount which exceeds liability
  72. 6Fees payable by qualifying lenders Repealed
  73. 7Election not to be regarded as a qualifying lender
  74. 8Provision of information
  75. 9Recovery of sum wrongly paid
  76. Schedule 5: Consequential amendments
  77. Part 1: General
  78. 1Paragraph 1
  79. 2Paragraph 2
  80. 3Paragraph 3
  81. 4Paragraph 4
  82. 5Paragraph 5
  83. 6Paragraph 6
  84. 7Paragraph 7
  85. 8Paragraph 8
  86. 9Paragraph 9
  87. 10Paragraph 10
  88. Part 2: Decisions and Appeals
  89. 11Paragraph 11
  90. 12Paragraph 12
  91. Explanatory note