13 January 2023
Six major lenders have changed their rules to allow mortgage applications on properties in buildings in England over 11m tall. Some banks will no longer require EWS1 certificates for these properties.
This follows the implementation of commitments made by mortgage lenders in a UK Finance statement and new RICS guidance that will help assess the value of properties with cladding.
All the banks will require evidence that at least one of the following applies:
- The cladding issue will be fixed by the developer (‘self-remediation’)
- The building is covered by one of the recognised Government schemes – the Developer Remediation Contracts, the Medium Rise Scheme or the Building Safety Fund
- The leaseholder protections in the Building Safety Act. Check qualification using the Government’s online tool.
The six lenders and their new policies are listed below:
| Lender | New policy |
| Barclays | Will now be able to lend on affected properties where a recognised remediation scheme is in place. |
| HSBC | Will now consider lending on flats which have failed their EWS1 assessment. |
| Lloyds | No longer requires an EWS1 form to progress applications for properties in England that are in buildings five storeys or higher. |
| Nationwide | Will now lend on affected properties, where the property is covered by the government or developer remediation schemes. |
| NatWest | Will support more customers with a mortgage on a building with cladding – but only for properties rated A3 or B2 in their EWS1 assessment. |
| Santander | Will now consider lending on flats in buildings irrespective of the building’s height or whether remediation work has commenced. May still request an EWS1 form in some cases. |
More information you might find useful:
