The Loans for Mortgage Interest Regulations 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 Regulations(1);

(b)

in the case of income support, the claimant’s weekly applicable amount under regulations 17 to 21AA of the IS Regulations(2);

(c)

in the case of jobseeker’s allowance, the claimant’s weekly applicable amount under regulations 83 to 86C of the JSA Regulations(3);

(d)

in the case of an SPC claimant, the claimant’s weekly appropriate minimum guarantee under section 2 of the State Pension Credit Act 2002(4);

(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 Regulations(5);

“assessment period” has the meaning given in regulation 21 of the UC Regulations(6);

“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 Regulations(7);

(b)

in the case of income support, in paragraph 4 of Schedule 7 to the Claims and Payment Regulations(8);

(c)

in the case of jobseeker’s allowance, in regulation 1 of the JSA Regulations(9);

(d)

in the case of state pension credit, in regulation 1 of the SPC Regulations(10);

“charge by way of legal mortgage” has the meaning given in section 132(1) of the Land Registration Act 2002(11);

“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 1987(12);

“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 Regulations(13);

(b)

in the case of income support, in paragraph 1(3) of Schedule 3 to the IS Regulations(14);

(c)

in the case of jobseeker’s allowance, in paragraph 1(3) of Schedule 2 to the JSA Regulations(15);

(d)

in the case of state pension credit, in paragraph 1(2)(a) of Schedule 2 to the SPC Regulations(16);

(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 1992(17);

(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 2008(18);

“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 2011(19);

“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 1987(20);

“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 1996(21);

“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 1925(22);

“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 2008(23);

“new claimant partner” has the meaning given in regulation 7 of the Transitional Provisions Regulations (24);

“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 Regulations(25);

(c)

in the case of jobseeker’s allowance, in regulation 2 of the JSA Regulations(26);

(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 2005(27);

(b)

in Scotland, means a person who is incapable under section 1(6) of the Adults with Incapacity (Scotland) Act 2000(28);

“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)

is treated as having been entitled to such a benefit under —

(aa)

paragraph 14 of Schedule 3 to the IS Regulations(29);

(bb)

paragraph 13 of Schedule 2 to the JSA Regulations(30); or

(cc)

paragraph 15 of Schedule 6 to the ESA Regulations(31);

“qualifying young person” has the meaning given—

(a)

in the case of a legacy benefit, in section 142 of the Social Security Contributions and Benefits Act 1992(32);

(b)

in the case of state pension credit, in regulation 4A of the SPC Regulations(33);

(c)

in the case of universal credit, in regulation 5 of the UC Regulations;

“relevant accommodation” means the accommodation which the claimant occupies, or is treated as occupying, as the claimant’s home under Schedule 3;

“relevant date”, apart from in regulation 21, means the first day with respect to which a claimant’s liability to make owner-occupier payments is met by a loan payment;

“single claimant” means—

(a)

an individual who has made a claim for, and is entitled to, a qualifying benefit as a single person; or

(b)

where Schedule 5 applies, an individual who has made a claim for, but is not entitled to, a qualifying benefit as a single person by reason only that the individual has income or, in the case of universal credit, 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 he or she would receive under regulation 10 if he or she were so entitled;

“single person” means an individual who is not a member of a couple;

“SPC claimant” means a claimant who is entitled to state pension credit;

“SPC Regulations” means the State Pension Credit Regulations 2002(34);

“standard security” has the meaning in Part 2 of the Conveyancing and Feudal Reform (Scotland) Act 1970(35);

“transitional end day” has the meaning given in regulations 19(1) and 20(2);

“Transitional Provisions Regulations” means the Universal Credit (Transitional Provisions) Regulations 2014(36);

“UC claimant” means a claimant who is entitled to universal credit;

“UC Regulations” means the Universal Credit Regulations 2013(37); and

“unearned income” has the meaning given in Chapter 3 of Part 6 of the UC Regulations.

(2) For the purposes of these Regulations, a reference to—

(a) entitlement to a qualifying benefit is to be read as a reference to entitlement as determined under the ESA Regulations, IS Regulations, JSA Regulations, SPC Regulations and UC Regulations;

(b) the claimant’s family or to being a member of the claimant’s family means a reference to the claimant’s partner and any child or qualifying young person who is the responsibility of the claimant or the claimant’s partner, where that child or qualifying young person is a member of the claimant’s household;

(c) a person being responsible for a child or qualifying young person is to be read as a reference to a person being treated as responsible for a child or qualifying young person in the circumstances specified in—

(i) in the case of employment and support allowance, regulation 156(10) of the ESA Regulations(38);

(ii) in the case of income support, regulation 15 of the IS Regulations(39);

(iii) in the case of jobseeker’s allowance, regulation 77 of the JSA Regulations(40);

(iv) in the case of state pension credit and universal credit, regulation 4 of the UC Regulations(41);

(d) a person being a member of a household is to be read as a reference to a person being treated as a member of the household in the circumstances specified in—

(i) in the case of employment and support allowance, in regulation 156 of the ESA Regulations(42);

(ii) in the case of income support, in regulation 16 of the IS Regulations(43);

(iii) in the case of jobseeker’s allowance, in regulation 78 of the JSA Regulations(44);

(iv) in the case of state pension credit and universal credit, in regulation 5 of the SPC Regulations(45);

(e) a person being engaged in remunerative work is to be read as a reference to a person being treated as engaged in remunerative work—

(i) in the case of employment and support allowance, in regulations 41 to 43 of the ESA Regulations(46);

(ii) in the case of income support, in regulations 5 and 6 of the IS Regulations(47);

(iii) in the case of jobseeker’s allowance, in regulations 51 to 53 of the JSA Regulations(48);

(iv) in the case of state pension credit, in paragraph 2 of Schedule 2 to the SPC Regulations(49).

(1)

S.I. 2008/794. Regulation 67 was amended by S.I. 2009/3228 and 2017/204.

(2)

S.I. 1987/1967. Regulation 17 was amended by S.I. 1988/1445, 1989/1678, 1991/387, 2003/455, 2005/2687, 2006/588 and 2009/3228.

(3)

S.I. 1996/207. Regulation 83 was amended by S.I. 2003/455 and 1121 and 2009/3228. Regulation 84 was amended by S.I 1996/1516, 2001/3767, 2003/455 and 1121 and 2009/3228. Regulations 86A and 86B were amended by S.I. 2000/1978, 2001/3767, 2003/1121 and 2009/3228.

(4)

2002 c. 6. Section 2 is amended by paragraph 14 of Schedule 24 to the Civil Partnership Act 2004 (c. 33).

(5)

S.I. 2013/376. Regulation 23(1) was amended by S.I. 2017/204.

(6)

Regulation 21 was amended by S.I. 2014/2887 and 2015/1362.

(7)

There have been amendments to regulation 2 which are not relevant to these Regulations.

(8)

S.I. 1987/1968. Paragraph 4 was amended by S.I. 1988/522.

(9)

Regulation 2 was amended by S.I. 2009/604 and other amending instruments which are not relevant to these Regulations.

(10)

There have been amendments to regulation 1 which are not relevant to these Regulations.

(11)

2002 c. 9.

(12)

S.I. 1987/1968.

(13)

Paragraph 1(3) was amended by S.I. 2012/913, 2013/630 and 2017/204.

(14)

Paragraph 1(3) was amended by S.I. 1995/2927, 2006/2378, 2008/1554, 2012/913, 2013/630 and 2017/204.

(15)

Paragraph 1(3) was amended by S.I. 1989/534, 1996/1516, 2006/2378, 2008/1554, 2012/913, 2013/630 and 2017/204.

(16)

Paragraph 1(2)(a) was amended by S.I. 2002/3197, 2005/3360, 2006/718, 2008/1554, 2012/913, 2013/388, 591 and 630, 2014/2888 and 2017/204.

(17)

1992 c. 14.

(18)

S.I. 2008/794. The Regulations have been modified in their application to certain claimants by S.I. 2008/3195, as amended by S.I. 2009/3257.

(19)

2011 c. 4.

(20)

S.I. 1987/1967. The Regulations have been modified in their application to certain claimants by S.I. 2008/3195, as amended by S.I. 2009/3257.

(21)

S.I. 1996/207. The Regulations have been modified in their application to certain claimants by S.I. 2008/3195, as amended by S.I. 2009/3257.

(22)

1925 c. 20.

(23)

S.I. 2008/3195. The Regulations were amended by S.I. 2009/3257.

(24)

S.I. 2014/1230. Regulation 7 was amended by S.I. 2014/2887.

(25)

Regulation 3 was amended by S.I. 1988/1445, 1989/534 and 1678, 1990/1776, 1991/2334, 1994/3061 and 1995/516.

(26)

There have been amendments to regulation 2 which are not relevant to these Regulations.

(27)

2005 c. 9.

(28)

2000 asp 4.

(29)

Paragraph 14 was amended by S.I. 1995/2927, 1996/206 and 1944, 1997/2863, 1998/2231, 1999/714, 1921 and 3178, 2000/724 and 1981, 2001/488 and 1029, 2002/841 and 3019, 2005/2465, 2006/2378, 2008/698, 1554, 2428 and 2767 and 2011/674 .

(30)

Paragraph 13 was amended by S.I. 1996/1516, 1517 and 2538, 1997/827 and 2863, 1998/2231, 1999/714, 1921 and 2860, 2000/724 and 1978, 2001/488 and 1029, 2002/841 and 3019, 2005/2465, 2006/2378, 2008/698, 1554, 1826 and 2767, 2009/480 and 2011/674 and 2425.

(31)

Paragraph 15 was amended by S.I. 2008/2428, 2011/674, 2425 and 2428, 2013/388 and 599 and 2015/1647.

(32)

1992 c. 4. Section 142 was substituted by section 1(2) of the Child Benefit Act 2005 (c. 6).

(33)

Regulation 4A was inserted by S.I. 2016/624.

(34)

S.I. 2002/1792. The Regulations have been modified in their application to certain claimants by S.I. 2008/3195, as amended by S.I. 2009/3257.

(35)

1970 c. 35.

(36)

S.I. 2014/1230.

(37)

S.I. 2013/376.

(38)

Regulation 156(10) was amended by S.I. 2008/2428, 2011/1740 and 2015/643.

(39)

Regulation 15 was amended by S.I. 1993/2119 and 2002/2402.

(40)

Regulation 77 was amended by S.I. 2002/2402.

(41)

Regulation 4 was amended by S.I. 2013/1508.

(42)

Regulation 156 was amended by S.I. 2008/2428, 2011/1740 and 2015/643.

(43)

Regulation 16 was amended by S.I. 1988/663, 1989/534, 1990/547, 1992/468 and 3147, 1993/2119, 1996/206 and 1944, 2005/445, 2078 and 2687, 2006/2378, 2011/1740 and 2015/643.

(44)

Regulation 78 was amended by S.I. 1996/1516 and 1517, 2000/1978, 2005/2687, 2006/588 and 2378, 2008/1554, 2011/1740, and 2015/643.

(45)

Regulation 5 was amended by S.I. 2002/1792, 3019 and 3197, 2003/2274, 2005/445, 2078 and 2687, 2006/2378, 2008/2424 and 2016/624.

(46)

Regulation 43 was amended by S.I. 2009/3228, 2013/2536 and 2014/3255.

(47)

Regulation 5 was amended by S.I. 1988/663, 1445 and 2022, 1990/547, 1991/1559, 1993/2119, 1995/516, 1996/1944, 1999/3178, 2000/681, 2001/488, 2002/2689, 2007/2618, 2008/698 and 2014/3255. Regulation 6 was amended by S.I. 1999/2556, 2000/681, 2003/1589, 2004/963, 2007/3183, 2008/1554, 2009/3228 and 2010/641.

(48)

Regulation 53 was amended by S.I. 2009/3228, 2013/2536, 2014/3255 and 2015/389.

(49)

Paragraph 2 was amended by S.I. 2002/3197, 2003/2274 and 2014/3255.