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The Social Security (Claims and Payments) Regulations 1987

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[F1Direct payment: more than one loanE+W+S

4.—(1) This paragraph applies where the borrower is liable to pay mortgage interest in respect of two or more different loans.

[F2(2) Subject to the following provisions of this paragraph, the Secretary of State shall pay to the qualifying lender or, if there is more than one qualifying lender, to each qualifying lender—

(a)a sum equal to the mortgage interest determined by reference to paragraph 12 of Schedule 3 to the Income Support Regulations [F3or, as the case may be [F4paragraph 9 of Schedule II to the State Pension Credit Regulations or], paragraph 11 of Schedule 2 to the Jobseeker’s Allowance Regulations] [F5or paragraph 13 of Schedule 6 to the Employment and Support Allowance Regulations] (standard rate) in respect of each loan made by that lender; plus

(b)any amount payable in accordance with paragraph 7 of Schedule 3 to the Income Support Regulations (transitional protection) attributable to the particular loan; F6...

F7(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(3) If, by virtue of deductions made under either paragraph 3(2) or 3(3), the specified part is less than the amount payable by the borrower in respect of mortgage interest, then the sum payable under sub-paragraph (2)(a) shall be minus such proportion of the sum subtracted under those sub-paragraphs as is attributable to the particular loan.

(4) Paragraph 3(4) shall apply to reduce the amount payable to a qualifying lender mentioned in sub-paragraph (2) above as it applies to reduce the amount of any relevant benefits payable to a qualifying lender under paragraph 3.

(5) Where the specified part is the part referred to in paragraph 3(8), the Secretary of State shall pay the specified part directly to the qualifying lenders to whom mortgage interest is payable by the borrower in order of the priority of mortgages or (in Scotland) in accordance with the preference in ranking of heritable securities.]

Textual Amendments

F1Sch. 9A inserted (25.5.1992 for specified purposes and for specified purposes and with effect in accordance with reg. 1(3)(4)) by The Social Security (Claims and Payments) Amendment Regulations 1992 (S.I. 1992/1026), reg. 1(3)(4), 6

F2Sch. 9A para. 4(2) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Income Support and Claims and Payments) Amendment Regulations 1995 (S.I. 1995/1613), reg. 1(1), Sch. 2 para. 8

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