Search rightsnet
Search options

Where

Benefit

Jurisdiction

Jurisdiction

From

to

Forum Home  →  Discussion  →  Housing costs  →  Thread

LMI on UC where income precludes claim

unhindered by talent
forum member

Aberdeenshire Support and Advice Team

Send message

Total Posts: 389

Joined: 18 October 2013

ADM memo 8/18: Loans for mortgage interest

Claimant
Single claimant
6 For the purpose of the regulations a claimant refers to both a single claimant and joint
claimant. This includes an individual (or individuals in the case of joint claimants) who
1. for a single person, has made a claim for and is entitled to IS, JSA(IB), ESA(IR),
SPC or UC or
2. has made a claim for and is not entitled to IS, JSA(IB), ESA(IR) or SPC by
reason only that they have income equal to or exceeding the applicable amount
but less than the sum of the applicable amount and loan payment that they will
be able to get

Does #2 mean that a single claimant of UC whose only entitlement would be due to mortgage costs can’t get LMI as they’re not treated as a claimant due to excess income?

Gareth Morgan
forum member

CEO, Ferret, Cardiff

Send message

Total Posts: 1821

Joined: 16 June 2010

No, it means that if they would qualify for benefit had the mortgage interest support been included in their applicable amount then they can qualify for the loan.

unhindered by talent
forum member

Aberdeenshire Support and Advice Team

Send message

Total Posts: 389

Joined: 18 October 2013

I understand that’s the case for the legacy benefits and SPC but #2 specifically excludes UC

Ianb
forum member

Macmillan benefits team, Citizens Advice Bristol

Send message

Total Posts: 742

Joined: 24 November 2017

This seems clear
https://www.gov.uk/support-for-mortgage-interest/eligibility

“If your income is too high to get a qualifying benefit

You might still be able to get SMI if you apply for one of the qualifying benefits but cannot get it because your income is too high. You’ll then be treated as getting the benefit you applied for.

You will not be treated as getting Universal Credit if you cannot get it because your income is too high.”

unhindered by talent
forum member

Aberdeenshire Support and Advice Team

Send message

Total Posts: 389

Joined: 18 October 2013

Ianb - 09 January 2021 08:19 PM

This seems clear
https://www.gov.uk/support-for-mortgage-interest/eligibility

“If your income is too high to get a qualifying benefit

You might still be able to get SMI if you apply for one of the qualifying benefits but cannot get it because your income is too high. You’ll then be treated as getting the benefit you applied for.

You will not be treated as getting Universal Credit if you cannot get it because your income is too high.”

Many thanks - that was how I read the ADM but wasn’t 100% sure

Gareth Morgan
forum member

CEO, Ferret, Cardiff

Send message

Total Posts: 1821

Joined: 16 June 2010

Sorry, I thought t was a query on the generality.

No, people who would otherwise be UC claimants can’t get LMI if they would otherwise have qualified when interest help would have been included.  See the definitions in the LMI regs.

“single claimant” means—
(a)an individual who has made a claim for, and is entitled to, a qualifying benefit;
(b)an individual who has made a claim for, but is not entitled to, a legacy benefit or state pension credit by reason only that the individual has, or, if the individual is a member of a couple, they have, income—
(i)equal to or exceeding the applicable amount, but
(ii)less than the sum of that applicable amount and the amount of a loan payment applicable to the individual;

“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)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—
(aa)equal to or exceeding the applicable amount, but
(bb)less than the sum of that applicable amount and the amount of a loan payment applicable to the joint-claim couple;
(b)in the case of universal credit means members of a couple who have jointly made a claim for, and are entitled to, universal credit

unhindered by talent
forum member

Aberdeenshire Support and Advice Team

Send message

Total Posts: 389

Joined: 18 October 2013

Great,  many thanks for that