Mortgage Advisor & Director
Mortgage Advisor & Director
In recent years, getting a mortgage on a flat (or other type of property) has become increasingly difficult if external cladding is used. Here we’ll explain how you can get a mortgage with a cladding certificate, what to do if a mortgage is rejected, and where to get some specialist support if you’re in this situation.
Can you get a mortgage on a home with cladding?
Yes, it can be more difficult, but it is possible to get a mortgage for a property with cladding. It will depend largely on the type of property, the building height and design, where the cladding is located, whether any remediation works are planned, and the lender you approach.
Certain UK lenders require an EWS1 form, but a few lenders no longer need a completed EWS1 if the property meets Royal Institute of Chartered Surveyors (RICS) guidelines. However, some lenders will decline mortgages altogether for a property with cladding due to the potential fire risks.
Lending criteria for homes or flats with cladding
Mortgage lending criteria for flats (or other properties with cladding) will usually be based around strict eligibility conditions focused on both property-specific and applicant-specific factors.
EWS1 forms and certificates
Following the Grenfell Tower tragedy, in 2019, mortgage lenders and the RICS collaborated to create a form to assess the fire risk and external wall safety of buildings over 18 metres. The result was the EWS1 certificate, which stands for ‘External Wall System Fire Review’.
The EWS1 is designed for residential properties (like blocks of flats) and assesses cladding (and other features like insulation and fire break systems), checking they’re in line with government guidance (like the PAS 9980 code of practice). Some lenders will request an EWS1 certificate if you want a mortgage with cladding.
However, these certificates can be difficult to obtain. There’s a shortage of qualified surveyors and fire engineers with the necessary insurance to complete EWS1 forms, so the wait times can be up to 12 months (or longer). Also, the cost of an EWS1 cladding certificate depends on the property size, ranging from £6,000 to £50,000.
Cladding-related criteria
There are 5 types of EWS1 ratings. Usually, a B2 rating or A3 for cladding makes it harder to get a mortgage. In most cases, you’ll need an EWS1 rating of B1, A2 or A1 to get a cladding certificate for a mortgage. There might also be additional criteria relating to the type of cladding and any planned remedial works.
Ideally, lenders want to ensure the cladding material is non-combustible and doesn’t require remedial work to make it safe. The size of the building or block of flats (for example, the number of storeys or height in metres) can also be a factor.
Lenders will check any details for remedial plans and may include additional conditions in the mortgage terms, such as putting money aside for future repairs. Or, they might ask for proof stating who is paying for the remediation. How the property is used (for example, whether it’s mixed-use) can also lead to more scrutiny.
General eligibility criteria
Apart from the cladding-specific mortgage eligibility criteria, lenders will also look closely at the strength of the rest of your application. For properties with cladding, some lenders will request a higher deposit or have lower loan-to-value (LTV) minimums to offset some of the added risk.
Lenders will also check your affordability and credit reports in detail, to assess your past financial history and current circumstances. Don’t be discouraged if you’ve got bad credit, there are specialist lenders you can approach.
Similarly, with affordability, it’s important to deal with the right lenders because some lenders will be stricter, or use smaller multiples than the standard 4.5 times your salary when calculating how much you can borrow for a cladding mortgage.
How to get a mortgage on a property with cladding
Here are some straightforward steps to follow if you want to get a mortgage for a house or flat with cladding:
1. Gather your details: Along with your personal documents (proof of address, identification, and 3 months of payslips and bank statements), you should get as much information as you can relating to the cladding, and certificates if it’s been assessed by a surveyor or fire engineer.
2. Get expert advice: It’s hard to get a cladding mortgage without advice from an expert. Specialist advice from a broker is extremely worthwhile because they can help you get the appropriate certificates, introduce you to the best lenders, and prevent unnecessary rejections or marks on your credit file.
3. Apply for a mortgage: Once your broker has checked your details (including a review of your credit reports), and assessed the cladding, they’ll introduce you to the right lender for your specific property and type of cladding. Your broker will also help walk you through the mortgage application process.
If you want to speak to one of our experienced brokers who specialises in mortgages with cladding, you can get started here with a free, no obligation chat:
Get tailored mortgage advice for properties with cladding
What to do if you’ve had a mortgage rejected due to cladding
It’s not uncommon for a mortgage to get declined due to cladding, and there’s been a huge uptick in cladding mortgage prisoners in recent years. A ‘mortgage prisoner’ is when you’re unable to sell or remortgage elsewhere because of an issue like cladding, which falls outside the lending appetite of most lenders.
However, it’s important not to panic or immediately reapply. First, you need to assess the cladding with an experienced broker. There might be a way to overcome any obstacles, because you can get a mortgage with cladding if handled correctly.
So it’s crucial to get expert advice and approach the right lender to avoid remaining a mortgage prisoner or face another rejection.
Get specialist advice for cladding mortgages
Our brokers specialise in securing mortgages for challenging properties, including those with cladding. To get a mortgage for a home or flat with cladding, your application needs to be accurate and contain any necessary cladding certificates.
Because our brokers have plenty of experience with difficult properties, they can help you arrange necessary surveys or certificates, evaluate your finances, and introduce you to the best lender for your circumstances.
Here are some more of the reasons people choose us when getting a mortgage with cladding:
- Our mortgage brokers specialise in properties with cladding
- We can introduce you to specialist lenders with great rates
- Your first chat is free with no obligation to proceed
- We are 5-star rated on leading review sites
Ready to take advantage of a free, no-obligation chat with a broker who specialises in cladding mortgages? Get started here.
FAQs
Most lenders still require a completed EWS1 form and certificate, but it depends on the exact construction and the type of cladding. Also, not all lenders require an EWS1 cladding certificate for a mortgage, your location and other factors can make a difference.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.