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. )
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