Housing costs element: Owner-occupiers
Universal credit claimants who are owner-occupiers may be entitled to a loan to meet their owner-occupier costs.
Loans replacing benefit payment
With effect from 6 April 2018, help with mortgage interest and other eligible payments are made as a loan rather than as part of a claimant’s benefit award. [1] New and existing claimants will need to sign a loan agreement. Existing claimants were written to in the period up to February 2018 as the loan will not replace the benefit award automatically.
For details, see Support for mortgage interest.
Zero-earnings rule
An owner-occupier will not receive any help with interest payments if they have any earned income. This applies if the claimant or their partner is in receipt of the income. This doesn't prevent claimants in shared ownership properties from claiming the housing costs element for their rental payments. [2]
Service charges
Certain payments for services or facilities are eligible under the housing cost element under universal credit. This is payable as part of the claimant's monthly benefit award (ie it is not a loan). For further information see Payment condition.
Last updated: 18 December 2020