Owner-occupier housing costs

The DWP says that there will be some differences from existing Support for Mortgage Interest provision for owner-occupiers when Universal Credit is introduced:

• all loans secured on the property will be allowable, up to the capital limit;

• there will be a “zero-earnings” rule for owner-occupier housing costs – if the claimant and/or their partner has any earned income, owner- occupier housing costs stops;

• there will be no “linking” rules – (where claimants return to their previous rate of benefits if they return to work and then stop again);

• the waiting period will be 13 weeks and the capital loan limit £200,000;

• there are no deductions for non-dependants in owner-occupier housing costs; and

• there is provision for alternative finance arrangements (Islamic mortgages).