3.—(1) If the circumstances set out in sub-paragraph (2) apply to a relevant claimant in respect of a loan, the Secretary of State is to pay part of the specified benefits directly to the qualifying lender to whom the loan interest payments in respect of the loan are payable.
(2) The circumstances are that—
(a)a loan was made in respect of which loan interest payments are payable to a qualifying lender;
(b)the relevant claimant (or either joint claimant) meets the payment condition and liability condition in respect of loan interest payments on the loan;
(c)those payments are taken into account in calculating the amount of housing costs element to be included in the relevant claimant’s award of universal credit; and
(d)the amount included in respect of those payments is calculated by reference to the standard rate.
(3) The part of the specified benefits which is to be paid under sub-paragraph (1) is the amount calculated under paragraphs 4 and 5 in respect of the relevant claimant.