The Loans for Mortgage Interest Regulations 2017
| Year | 2017 |
2017 No. 725
Social Security
The Loans for Mortgage Interest Regulations 2017
Made 5th July 2017
Laid before Parliament 6th July 2017
Coming into force in accordance with regulation 1(2)
The Secretary of State, in exercise of the powers conferred by sections 4(5), 35(1), 36(2) and (4) of the Jobseekers Act 19951, sections 2(3)(b) and sections 17(1) and 19(1) of the State Pension Credit Act 20022, sections 123(1)(a), 135(1), 137(1) and (2)(d) and 175(1), (3) and (4) of the Social Security Contributions and Benefits Act 19923, sections 4(2)(a), 24(1) and 25(2), (3) and (5)(a) of the Welfare Reform Act 20074, sections 11(3) and (4) and 42(1), (2) and (3)(a) of, and paragraph 1(1) of Schedule 6 to, the Welfare Reform Act 20125and sections 18, 19 and 21 of the Welfare Reform and Work Act 20166, makes the following Regulations.
This instrument contains only regulations made under, by virtue of, or consequential upon, sections 18, 19 and 21 of the Welfare Reform and Work Act 2016 and is made before the end of the period of 6 months beginning with the coming into force of those sections. Therefore, in accordance with section 173(5) of the Social Security Administration Act 19927, these Regulations are not required to be referred to the Social Security Advisory Committee.
Citation and commencement
1.—(1) These Regulations may be cited as the Loans for Mortgage Interest Regulations 2017.
(2) These Regulations come into force—
(a)
(a) for the purposes of regulations 18 to 21, on 6th April 2018;
(b)
(b) for all other purposes, on 27th July 2017.
Interpretation
2.—(1) In these Regulations—
“the Act” means the Welfare Reform and Work Act 2016;
“alternative finance payments” has the meaning given in paragraph 5(3) of Schedule 1 to these Regulations;
“applicable amount” means—
(a) in the case of employment and support allowance, the claimant’s weekly applicable amount under regulations 67 to 70 of the ESA Regulations8;
(b) in the case of income support, the claimant’s weekly applicable amount under regulations 17 to 21AA of the IS Regulations9;
(c) in the case of jobseeker’s allowance, the claimant’s weekly applicable amount under regulations 83 to 86C of the JSA Regulations10;
(d) in the case of an SPC claimant, the claimant’s weekly appropriate minimum guarantee under section 2 of the State Pension Credit Act 200211;
(e) in the case of a UC claimant, the maximum amount of a claimant’s award of universal credit under regulation 23(1) of the UC Regulations12;
“assessment period” has the meaning given in regulation 21 of the UC Regulations13;
“benefit unit” means a single claimant and his or her partner (if any) or joint claimants;
“benefit week” has the meaning given—
(a) in the case of employment and support allowance, in regulation 2 of the ESA Regulations14;
(b) in the case of income support, in paragraph 4 of Schedule 7 to the Claims and Payment Regulations15;
(c) in the case of jobseeker’s allowance, in regulation 1 of the JSA Regulations16;
(d) in the case of state pension credit, in regulation 1 of the SPC Regulations17;
“charge by way of legal mortgage” has the meaning given in section 132(1) of the Land Registration Act 200218;
“child” means a person under the age of 16;
“claimant” means a single claimant or each of joint claimants;
“Claims and Payment Regulations” means the Social Security (Claims and Payments) Regulations 198719;
“close relative” means a parent, parent-in-law, son, son-in-law, daughter, daughter-in-law, step-parent, step-son, step-daughter, brother, sister, or, if any of the preceding persons is one member of a couple, the other member of that couple;
“couple” means—
(a) two people who are married to, or civil partners of, each other and are members of the same household;
(b) two people who are not married to, or civil partners of, each other but are living together as a married couple or civil partners;
“disabled person” has the meaning given—
(a) in the case of employment and support allowance, in paragraph 1(3) of Schedule 6 to the ESA Regulations20;
(b) in the case of income support, in paragraph 1(3) of Schedule 3 to the IS Regulations21;
(c) in the case of jobseeker’s allowance, in paragraph 1(3) of Schedule 2 to the JSA Regulations22;
(d) in the case of state pension credit, in paragraph 1(2)(a) of Schedule 2 to the SPC Regulations23;
(e) in the case of universal credit, in paragraph 14(3) of Schedule 3 to these Regulations;
“dwelling”—
(a) in England and Wales, means a dwelling within the meaning of Part 1 of the Local Government Finance Act 199224;
(b) in Scotland, means a dwelling within the meaning of Part 2 of that Act;
“earned income” has the meaning given in Chapter 2 of Part 6 of the UC Regulations;
“ESA Regulations” means the Employment and Support Allowance Regulations 200825;
“existing claimant” means a claimant who is entitled to a qualifying benefit, including an amount for owner-occupier payments, on 5th April 2018;
“financial year” has the meaning given in section 25(2) of the Budget Responsibility and National Audit Act 201126;
“income” means any income which is, or which is treated as, an individual’s, including payments which are treated as earnings, and which is not disregarded, under—
(a) in the case of employment and support allowance, Part 10 of the ESA Regulations;
(b) in the case of income support, Part 5 of the IS Regulations;
(c) in the case of jobseeker’s allowance, Part 8 of the JSA Regulations;
(d) in the case of state pension credit, Part 3 of the SPC Regulations;
“IS Regulations” means the Income Support (General) Regulations 198727;
“joint claimants”—
(a) in the case of jobseeker’s allowance means—
(i) members of a joint-claim couple who have jointly made a claim for, and are entitled to, income-based jobseeker’s allowance; or
(ii) where Schedule 5 applies, members of a joint-claim couple who have made a claim for, but are not entitled to, such a benefit by reason only that they have income equal to or exceeding the applicable amount but less than the sum of that applicable amount and the amount of a loan payment they would receive under regulation 10 if they were so entitled;
(b) in the case of universal credit means—
(i) members of a couple who have jointly made a claim for, and are entitled to, universal credit; or
(ii) where Schedule 5 applies, members of a couple who have made a claim for, but are not entitled to, such a benefit by reason only that they have unearned income equal to or exceeding the applicable amount but less than the sum of that applicable amount and the amount of a loan payment they would receive under regulation 10 if they were so entitled;
“joint-claim couple” has the meaning in section 1(4) of the Jobseekers Act 1995;
“JSA Regulations” means the Jobseeker’s Allowance Regulations 199628;
“legacy benefit” means income-related employment and support allowance, income support or income-based jobseeker’s allowance;
“legacy benefit claimant” means a claimant who is entitled to a legacy benefit;
“legal estate” means any of the legal estates set out in section 1(1) of the Law of Property Act 192529;
“legal owner” means the owner, whether alone or with others, of a legal estate or, in Scotland, a heritable or registered interest, in the relevant accommodation;
“loan agreement” means an agreement entered into by a single claimant and his or her partner (if any), or each joint claimant, and the Secretary of State, which sets out the terms and conditions upon which the loan payments are made to the claimant;
“loan payments” means one or more payments, calculated under regulation 10, in respect of a claimant’s liability to make owner-occupier payments in respect of the relevant accommodation;
“loan payments offer date” means the day on which the Secretary of State sends the loan agreement to a claimant;
“Modified Rules” means the Social Security (Housing Costs Special Arrangements) (Amendment and Modification) Regulations 200830;
“new claimant partner” has the meaning given in regulation 7 of the Transitional Provisions Regulations31;
“non-dependant” has the meaning given—
(a) in the case of employment and support allowance, in regulation 71 of the ESA Regulations;
(b) in the case of income support, in regulation 3 of the IS Regulations32;
(c) in the case of jobseeker’s allowance, in regulation 2 of the JSA Regulations33;
(d) in the case of state pension credit, in paragraph 1(4) of Schedule 2 to the SPC Regulations;
“owner-occupier payments” has the meaning given in regulation 3(2)(a);
“partner” means—
(a) where a claimant is a member of a couple, the other member of that couple;
(b) where a claimant is married polygamously to two or more members of the claimant’s household, all such members;
“person who lacks capacity”—
(a) in England and Wales, has the meaning given in section 2 of the Mental Capacity Act 200534;
(b) in Scotland, means a person who is incapable under section 1(6) of the Adults with Incapacity (Scotland) Act 200035;
“polygamous marriage” means a marriage during which a party to it is married to more than one person and which took place under the laws of a country which permits polygamy;
“qualifying benefit” means income-related employment and support allowance, income support, income-based jobseeker’s allowance, state pension credit or universal credit;
“qualifying lender” has the meaning given in section 19(7) of the Act;
“qualifying loan” means—
(a) in the case of a legacy benefit or state pension credit, a loan which qualifies under paragraph 2(2) or (4) of Schedule 1 to these Regulations;
(b) in the case of universal credit, a loan which qualifies under paragraph 5(2) of Schedule 1 to these Regulations;
“qualifying period” means a period of—
(a) nine consecutive assessment periods in which a claimant has been entitled to universal credit;
(b) 39 consecutive weeks in which a claimant—
(i) has been entitled to a legacy benefit; or
(ii)...
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