17.—(1) Where the circumstances specified in paragraph (2) are met, the loan payments must be made by the Department direct to a claimant's lender.
(2) The circumstances referred to in paragraph (1) are that—
(a)money was lent to the claimant in respect of which owner-occupier payments in respect of the relevant accommodation are payable to a qualifying lender; and
(b)those owner-occupier payments are taken into account in calculating the amount of each loan payment under regulation 10 (calculation of each loan payment).
(3) Where the circumstances in paragraph (2) are not met, the loan payments shall be made to the claimant.
(4) Schedule 4 (direct payments to qualifying lenders) has effect in relation to payments made under paragraph (1).