Explanatory note

These Regulations amend the Social Security (Claims and Payments) Regulations 1987 (S.I. 1987/1968) to provide that, where payments of mortgage interest are deducted from income support, an income-based jobseeker’s allowance, an income-related employment and support allowance or the guarantee credit element or savings credit element of state pension credit, and paid to a qualifying lender, any amount paid in excess of the borrower’s actual mortgage interest liability shall be applied first to pay off any arrears of mortgage interest, and then to repay the principal sum of that mortgage or any other liability to the qualifying lender in respect of that mortgage.

Provision is also made for the application of any such excess in cases where the borrower is liable to pay mortgage interest to the same qualifying lender in respect of more than one loan.

A full impact assessment has not been produced for this instrument as it has no impact on the private or voluntary sectors.