Mortgage products available on flats impacted by cladding

From Monday 9 January 2023, lenders will be able to consider mortgage applications in England on domestic properties within residential blocks of five or more storeys or 11 metres or taller.

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A commitment was made in July 2022 to ensure customers have access to a range of mortgage products when seeking to purchase or re-mortgage properties affected by unsafe cladding. Leaseholders and prospective buyers now have clarity on purchasing homes with building safety issues, with the aim of restoring confidence in this market.

The Royal Institution of Chartered Surveyors (RICS), the Building Societies Association, and UK Finance have stated their support for the mortgage products offered and, as of 20 December 2022, lenders committed are: 

  • Barclays Bank
  • HSBC
  • Lloyds Banking Group
  • Nationwide Building Society
  • NatWest
  • Santander

Lenders will need evidence that buildings will be self-remediated by developers or covered by a recognised UK Government scheme or by leaseholder protections contained in the Building Safety Act, as evidenced by a Leaseholder Deed of Certificate. All mortgage lending, however, is subject to regulatory requirements and individual firms' lending policies.

Recognised remediation schemes in England are:
  • The Developer Remediation Contracts (11 metres+)
  • The Medium Rise Scheme (11-18 metres)
  • The Building Safety Fund (18 metres+)

Valuation guidance

Guidance has been published by The Royal Institution of Chartered Surveyors (RICS) to help valuers value properties with cladding to enable mortgage lending on affected properties. They will continue to support valuers, monitoring the impact of the new guidance to ensure it is proportionate, fit for purpose and helps facilitate mortgage lending while delivering a consistent approach to valuation.