The Loans for Mortgage Interest Regulations (Northern Ireland) 2017

Loans incurred during relevant period N.I.

3.—(1) Subject to sub-paragraph (5), loans which, apart from this paragraph, qualify under paragraph 2(2) or (4) shall not so qualify where the loan was incurred during the relevant period.

(2) The “relevant period” for the purposes of this paragraph is any period during which the person to whom the loan was made—

(a) is entitled to, or is treated as entitled to, a legacy benefit or state pension credit; or

(b) is living as a member of a family one of whom is entitled to, or is treated as entitled to, a legacy benefit or state pension credit,

together with any period falling between 2 such periods of entitlement separated by not more than 26 weeks.

(3) For the purposes of sub-paragraph (2), a person shall be treated as entitled to either a legacy benefit or state pension credit during any period when the person, the person's partner, or, where that person is a member of a joint-claim couple, the other member of that couple was not so entitled because—

(a) that person, the person's partner or, where that person is a member of a joint-claim couple, the other member of that couple, was participating in an employment programme specified in regulation 75(1)(a) of the JSA Regulations M1 ; and

(b) in consequence of such participation that person, the person's partner, or, where that person is a member of a joint-claim couple, the other member of that couple, was a person engaged in remunerative work and had income equal to or in excess of the applicable amount.

(4) Where a loan which qualifies under paragraph 2(2) was incurred during the relevant period—

(a) for paying off an earlier loan, and that earlier loan qualified under paragraph 2(2) and was incurred during the relevant period; or

(b) to finance the purchase of a property where an earlier loan, which qualified under paragraph 2(2) or (4) and was incurred during the relevant period in respect of another property, is paid off (in whole or in part) with monies received from the sale of that property,

then the amount of the loan to which sub-paragraph (1) applies is the amount (if any) by which the new loan exceeds the earlier loan.

(5) Loans taken out during the relevant period shall qualify as loans under paragraph 2(2) or (4), where a claimant satisfies any of the conditions specified in sub-paragraphs (6), (8) and (9), but—

(a) where the claimant satisfies the condition in sub-paragraph (6), [F1 the amount of each loan payment calculated under regulation 10 (calculation of each loan payment)] shall be subject to the additional limitation imposed by sub-paragraph (7); and

(b) where the claimant satisfies the conditions in more than one of these sub-paragraphs, only one sub-paragraph shall apply in the claimant's case, which shall be the one most favourable to the claimant.

(6) The first condition is that—

(a) during the relevant period, the claimant or a member of the claimant's family acquires an interest (“the relevant interest”) in the relevant accommodation; and

(b) in the week preceding the week in which the relevant interest was acquired, the claimant or a member of the claimant's family was entitled to housing benefit.

(7) Where the condition in sub-paragraph (6) is satisfied, the amount of the loans which qualify shall initially not exceed the aggregate of—

(a) the housing benefit entitlement referred to in sub-paragraph (6)(b); and

(b) any amount included in the applicable amount of the claimant or a member of the claimant's family [F2 relating to housing costs] in that week,

and shall be increased subsequently only to the extent that it is necessary to take account of any increase in the standard rate under regulation 13 (standard rate to be applied under regulations 11 and 12) arising after the date of acquisition.

(8) The second condition is that the loan was taken out, or an existing loan increased, to acquire alternative accommodation more suited to the needs of a disabled person than the relevant accommodation which was occupied before the acquisition by the claimant.

(9) The third condition is that—

(a) the loan commitment increased in consequence of the disposal of the relevant accommodation and the acquisition of alternative accommodation; and

(b) the change of accommodation was made solely by reason of the need to provide separate sleeping accommodation for persons of different sexes aged 10 or over but under the age of 20 who live with the claimant and for whom the claimant or the claimant's partner is responsible.

Textual Amendments

F1 Words in Sch. 1 para. 3(5)(a) substituted (6.4.2018) by The Loans for Mortgage Interest and Social Fund Maternity Grant (Amendment) Regulations (Northern Ireland) 2018 (S.R. 2018/37), regs. 1(2), 2(16)(a)

F2 Words in Sch. 1 para. 3(7)(b) inserted (6.4.2018) by The Loans for Mortgage Interest and Social Fund Maternity Grant (Amendment) Regulations (Northern Ireland) 2018 (S.R. 2018/37), regs. 1(2), 2(16)(b)

Marginal Citations

M1 Regulation 75(1)(a) is substituted by regulation 2(9)(a)(ii) of S.R. 2016 No. 241.