The Income Support (General) Amendment No. 3 Regulations 1993

Mortgage Interest Payments

3.—(1) Schedule 3 to the Income Support Regulations(1) (housing costs) shall be further amended in accordance with the following provisions of this regulation.

(2) In paragraph 7 (interest on loans to acquire an interest in the dwelling occupied as the home)—

(a) in sub-paragraph (3), for the words “sub-paragraphs (3A) to (6)” there shall be substituted the words “sub-paragraphs (3A) to (6B) and paragraphs 7A and 7B”; and

(b) after sub-paragraph (6A) there shall be inserted the following sub-paragraphs—

“(6B) Where for the time being a loan exceeds, or in a case where more than one loan is to be taken into account, the aggregate of those loans exceeds the appropriate amount specified below for the purposes of this sub-paragraph, then the amount of the loan, or as the case may be, the aggregate amount of those loans, shall for the purposes of paragraph 7 be the appropriate amount and only the interest attributable to that amount shall qualify as eligible interest.

(6C) Subject to the following provisions of this paragraph the appropriate amount specified for the purposes of sub-paragraph (6B) is—

(a) before 11th April 1994 £150,000;

(b) after 10th April 1994 £125,000.

(6D) Where a person is treated under paragraph 4(6) (payments in respect of two dwellings) as occupying two dwellings as his home, and has loans of a kind specified in sub-paragraphs (3) and (3A) or met under sub-paragraph (7) in respect of both those dwellings, then the restrictions imposed by sub-paragraph (6B) shall be applied separately to the loans for each dwelling, and the eligible interest for the purposes of this paragraph shall be the aggregate of the eligible interest for the loans on both dwellings.

(6E) In a case where paragraph 6 (apportionment of housing costs) applies, the appropriate amount for the purposes of sub-paragraph (6B) shall be the lower of—

(a) a sum determined by applying the formula—

P × Q,

where

P

=

the relevant fraction for the purposes of paragraph 6, and

Q

=

the amount or, as the case may be, the aggregate amount for the time being of any loan or loans of a kind specified in sub-paragraphs (3) and (3A) or met under sub-paragraph (7); or

(b) the sum for the time being specified in sub-paragraph (6C).

(6F) In a case where sub-paragraph (5) (loans which qualify in part only) applies, the appropriate amount for the purposes of sub-paragraph (6B) shall be the lower of—

(a) a sum representing for the time being the part of the loan applied for the purposes specified in sub-paragraphs (3) and (3A); or

(b) the sum for the time being specified in sub-paragraph (6C).”.

(3) After paragraph 7, there shall be inserted the following paragraphs—

“Apportionment of qualifying loans

7A.— (1) For the purposes of determining whether the appropriate amount for the time being specified for the purposes of paragraph 7(6B) has been exceeded, any loan taken out for a purpose specified in paragraph 8(1) shall, subject to paragraph 7B, be aggregated with any loan taken out for a purpose specified in paragraph 7(3) or (3A) or met under paragraph 7(7).

(2) Where in any case the amount for the time being specified for the purpose of paragraph 7(6B) is exceeded and there are 2 or more loans to be taken into account under either paragraph 7 or paragraph 8 or under the two paragraphs, then the amount of eligible interest in respect of each of those loans to the extent that the loans remain outstanding shall be determined as if each loan had been reduced to a sum equal to the qualifying portion of that loan.

(3) For the purposes of sub-paragraph (2), the qualifying portion of a loan shall be determined by applying the formula—

where—

R

=

the amount for the time being specified for the purposes of paragraph 7(6B);

S

=

the amount of the outstanding loan to be taken into account; and

T

=

the aggregate of all outstanding loans to be taken into account under paragraphs 7 and 8.

(4) For the purposes of this paragraph a loan is to be taken into account only to the extent that eligible interest is payable on it.

Disabled Persons

7B.— (1) Any loan taken out to adapt a dwelling for the special needs of a disabled person shall be disregarded in determining whether the appropriate amount for the time being specified for the purposes of paragraph 7(6B) is exceeded and an amount in respect of interest payable on such a loan shall be met in accordance with paragraph 8.

(2) For the purposes of sub-paragraph (1) a disabled person is a person—

(a) in respect of whom a disability premium, a disabled child premium, a pensioner premium for persons 75 or over or a higher pensioner premium is included in his applicable amount or the applicable amount of a person living with him; or

(b) who is a non-dependant but who, had he in fact been entitled to income support, would have had included in his applicable amount a disability premium, a disabled child premium, a pensioner premium for persons aged 75 or over or a higher pensioner premium.”.

(4) In paragraph 8(2), in sub-paragraph (1), at the beginning there shall be inserted the words “Subject to paragraph 7A,”.

(1)

The relevant amending instruments are S.I. 1988/663 and 2022, 1989/1678 and 1990/1776.

(2)

Paragraph 8 was amended by S.I. 1990/547.