Hi all,

Can anyone help? I’m assisting a client with an appeal against a decision that has refused him mortgage interest payments (Pension Credit).

Client and his brother were left the family property by their Mother in a Will, no mortgage. The brother wanted to sell the property and was going to force a sale at auction. My client did not want to sell the property so he brought the brother out obtaining a loan of £105.000.

The loan was finalized on 11th October 2007. The client made a claim for Pension Credit on 1st October 2008 and his claim was backdated one year to the 1st October 2007. Therefore the decision is that the client took out a loan whilst receiving Pension Credit, during the “relevant period”.

I have looked through State Pension Credit Regulations 2002 paragraph 11 of Schedule II and the decision appears to be correct. However, my client actually “applied” for the loan in August 2007. The loan was “finalized” on 11th October 2007. Therefore, the client didn’t actually “apply” for the loan in the “relevant period” and I believe the decision is incorrect.

Does anyone agree? Does the loan start from when a person applies or from when the loan is finalized?

Any comments would be much appreciated. )

Sorry me again,

I think what I mean to say…the regulations state “from when a loan is taken out” does this mean from when the client applied for the loan or from when the loan was actually finalized and paid???

a mortgage isn't final until you actually have the money, as the lender could withdraw it's offer at any time prior to sending the money...as I understand it. I would think a loan is not taken out when it is applied for, since that is a different thing...

example - applies and is turned down, = loan not taken out.

applies for £x loan; offered £y loan; accepts offer of £y loan; loan taken out when all signed/money transferred.

Hi Claire,

Thanks so much for clarifying that. That is what I thought but I think my mind was working overtime on that day and I was looking for something that wasn’t there. The question seems a little stupid now I have looked at it with a clearer head! $

Thanks so much for replying

Nikki