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The Loans for Mortgage Interest Regulations 2017

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Duration of loan payments

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9.—(1) Subject to paragraph (2), loan payments shall continue to be made indefinitely at the intervals specified in regulation 7.

(2) If one of the circumstances in paragraph (3) occurs, the Secretary of State shall terminate the loan payments immediately but subject to paragraph (4).

(3) The circumstances are that—

(a)the claimant ceases to be entitled to a qualifying benefit;

(b)the claimant ceases to be, or to be treated as, liable to make owner-occupier payments under Schedule 2;

(c)the claimant ceases to be, or to be treated as, occupying the relevant accommodation under Schedule 3;

(d)the loan agreement is terminated in accordance with its terms;

(e)in the case of a UC claimant only, regulation 3(4) applies.

(4) The Secretary of State shall make the loan payments direct to the claimant for the period specified in paragraph (6) if—

(a)a claimant ceases to be entitled to a legacy benefit by reason that, in the case of a single claimant, the claimant or his or her partner (if any), or, in the case of joint claimants, either member of the couple, is engaged in remunerative work; and

(b)the conditions in paragraph (5) are met.

(5) The conditions are that, in the case of a single claimant, the claimant or his or her partner (if any), or, in the case of joint claimants, either member of the couple—

(a)is engaged in remunerative work which is expected to last for a period of no less than 5 weeks;

(b)is still liable or treated as liable to make owner-occupier payments under Schedule 2;

(c)has, for a continuous period of 26 weeks ending with the day on which he or she commences the work referred to in sub-paragraph (a), been entitled to a legacy benefit; and

(d)was, on the day before the day on which he or she commenced the work referred to in sub-paragraph (a), receiving loan payments under these Regulations.

(6) The period specified is the period of 4 weeks commencing with the day on which the relevant person is first engaged in remunerative work.

(7) If a legacy benefit claimant ceases to be entitled to a legacy benefit but becomes entitled again to the legacy benefit within the period of 52 weeks beginning with the day the claimant ceased to be entitled to it, the claimant shall not be required to satisfy the qualifying period if the claimant wishes to receive loan payments on the basis of the new entitlement.

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