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Universal Credit (UC) housing costs element - Universal Credit (UC): How much will I get? I'm a homeowner

Find out more about the Universal Credit housing costs element.

Universal Credit (UC): How much will I get? I'm a homeowner

Maximum loan amount

There is an upper limit on the total loan amount that can be included in your claim. The upper loan limit is £200,000. Your housing costs element will therefore be based on your total loan amount owed, or £200,000, whichever is lowest.

Standard Interest rate

Housing costs for loans, whether that is a mortgage, home purchase loan, or qualifying home improvement loan, are calculated using a standard rate of interest, not your lender’s actual interest rate for your loan. This means that if your interest rate is higher, there may be a shortfall between the help provided and your contractual payment.

The current rate of interest used when calculating help with housing costs is 3.12%.

Calculation

Your housing costs element will be your loan amount owed (or £200,000) multiplied by the standard interest rate, divided by twelve in order to get the monthly amount.

There are restrictions on the help provided if your mortgage or loan was taken out or increased after you became entitled to Universal Credit, or if your housing costs are deemed excessive.

Waiting period

You will not receive a housing costs element for the first nine months after qualifying to have one included in your award. This is called a 'qualifying period'.

If you were receiving Jobseeker's Allowance or Employment and Support Allowance immediately prior to your Universal Credit claim, the time spent on that benefit can count towards your qualifying period.

 

Updated March 2017
 

 

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