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The Loans for Mortgage Interest Regulations (Northern Ireland) 2017

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Interest

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15.—(1) The Department shall charge interest on the sum of the loan payments until the earlier of—

(a)the day on which the loan payments and accrued interest are repaid in full;

(b)the event referred to in regulation 16(1)(c).

(2) Interest at the relevant rate shall accrue daily, with effect from the first day a loan payment is made to a qualifying lender or the claimant under regulation 17 (direct payments to qualifying lenders), and shall be added to the outstanding amount at the end of each month (or part month).

(3) The relevant rate is the interest rate for the relevant period.

(4) For the purposes of this regulation and regulation 16 (repayment), the outstanding amount is the sum of the loan payments and interest which has been charged under paragraph (1).

(5) The interest rate referred to in paragraph (3) is the weighted average interest rate on conventional gilts specified in the most recent report published before the start of the relevant period by the Office for Budget Responsibility under section 4(3) of the Budget Responsibility and National Audit Act 2011(1) (main duty of office).

(6) The relevant period is the period starting on—

(a)1st January and ending on 30th June in any year; or

(b)1st July and ending on 31st December in any year.

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