Can You Get a Mortgage on a Property with Cladding?

Mortgages for Flats with Cladding: What You Need to Know

If you live in or want to buy a flat with cladding, you have probably seen mixed messages about whether a mortgage is possible.

Since major building safety reforms, lending has slowly reopened, yet criteria can still feel confusing.

The good news is that getting a mortgage on a property with cladding is possible in many cases, provided certain conditions are met and the right evidence is in place.

What cladding is and why lenders care

Cladding is an external layer added to a building to improve weather protection and thermal performance, and sometimes to enhance the look of the facade.

Some materials used in the past turned out to be combustible or part of wall systems that did not perform as expected in a fire. After several high profile incidents, lenders began asking for clear evidence that a building’s external wall system is safe or will be made safe.

As a borrower, that means the valuer and the lender will want confidence that fire risks are understood, that remediation is funded or agreed where needed, and that residents are protected from unreasonable costs. This is not about making life difficult. It is about making sure the security for the loan is sound and that you are not exposed to unexpected liabilities.

How the rules evolved

Following the building safety reforms, several changes have made lending more workable. An External Wall System process was created to help fire safety professionals assess buildings. The form you hear most about is EWS1, which is a standard way for a competent professional to record an assessment for valuation purposes.

Not every building needs an EWS1 form. Many mid rise buildings and blocks without relevant materials can be assessed by other means or may be exempt under lender policies. RICs has detailed information about Cladding External Wall System (EWS)

Alongside that, government and industry introduced protections and schemes to ensure unsafe cladding is remediated and that qualifying leaseholders are not left with unfair bills. Where a building is part of a recognised remediation route, lenders are generally more willing to proceed, because the path to a safer building is clear and funding is identified.

So can you get a mortgage on a property that has cladding

A number of well known lenders will consider properties with cladding provided certain safeguards are in place. Each lender has its own policy and appetite, but there are common themes across the market. You will usually need to show one or more of the following:

• Clear evidence that the building will be fixed by the developer or responsible party through a formal remediation route
• Confirmation that the building is covered by a recognised government scheme that funds or oversees remediation
• Leaseholder protections under the relevant building safety legislation, evidenced by the correct documentation such as a Leaseholder Deed of Certificate
• Where required, an appropriate external wall assessment such as an EWS1 with a rating that matches the lender’s policy

Each lender approached this differently so it is recommended to speak with a mortgage adviser, such as Kerr & Watson, who can explore the potential solutions based on your scenario.

When an EWS1 form is needed and when it is not

The EWS1 form is widely used, but it is not a legal requirement for every block. Whether one is needed depends on the building’s height, materials, and the lender’s policy at the time of application.

Some lenders accept alternative evidence where the building is covered by leaseholder protections or a recognised scheme. Other lenders still want an EWS1 to inform the valuer and their credit team even when remediation is already planned.

What lenders want to see in practice

Lenders and valuers are focused on three questions.

• What is the actual fire risk in the wall system and common parts
• Who is responsible for fixing it and is there a binding commitment in place
• Who pays and does the borrower have protection from disproportionate costs

Evidence that satisfies these points might include the building’s safety assessment, the EWS1 rating if applicable, the developer self remediation agreement, a letter confirming inclusion in a government programme, the leaseholder certificate, and a clear statement from managing agents on the timetable and funding for works. Insurance arrangements and any interim measures like alarms or waking watches are also relevant, particularly for valuations.

Will rates be higher on flats with cladding

Headline mortgage rates for eligible cladding cases are generally aligned with standard pricing from lenders that accept these properties. The main trade off is choice.

Because the market is smaller than for unaffected properties, you may have fewer products to compare.

A broker who covers the whole market can still help you look for competitive terms and structure the case to pass underwriting first time.

If you already own the flat and are coming to the end of a fixed rate, talk to us early. Even where a product transfer is possible, it may not be the best value if your building now meets wider lending criteria elsewhere.

Buying a property with cladding

Start by asking the agent and the managing agent for the building safety information upfront. That avoids surprises later in conveyancing.

Your solicitor should be experienced with cladding cases and will check the lease, the building safety documentation, the funding route for any works, and the building insurance. Share everything with your broker early so we can pre-empt valuation queries and look for the lender that best fits the paperwork.

Selling a flat with cladding

If you are selling, assemble a clean pack before listing. Include the latest safety assessment, any EWS1 if available, confirmation of scheme coverage or remediation contracts, and correspondence from the freeholder or managing agent about timelines and funding.

Buyers and their lenders move faster when everything is set out clearly.

Conclusion

You can often get a mortgage on a property that has cladding, but success depends on the evidence and on choosing a lender whose policy matches your building’s status.

With the right documentation and a clear remediation route, applications may proceed on standard pricing.

If you would like to explore your mortgage options, contact Kerr and Watson today.