Six major banks will scrap ban on mortgages for flats covered in unsafe cladding – bringing a lifeline for owners who can’t sell
- Six banks will scrap their ban on lending to high-rise homes deemed a fire risk
- Barclays, HSBC, and NatWest are among those who are changing their ban
- This comes after guidance from the Royal Institution of Chartered Surveyors
- Campaigners hailed the move as a relief for homeowners who cannot sell
Owners unable to sell their flats because of unsafe cladding will soon see an end to years of being left in limbo.
From January 9, six major banks will scrap their ban on lending on hundreds of thousands of medium to high-rise homes deemed a fire risk.
Barclays, HSBC, Lloyds, Nationwide, NatWest and Santander will consider mortgage applications on buildings in England more than 11m (36ft) tall which have the cladding.
Lenders have loosened cladding restrictions after guidance from the Royal Institution of Chartered Surveyors on how to value such properties.
From January 9, six major banks will scrap their ban on lending on hundreds of thousands of medium to high-rise homes deemed a fire risk
Borrowers will need to prove that removal of the cladding will be covered by the developer, a Government scheme or leaseholder protections.
Campaigners hailed the move as a relief for homeowners who, as the Daily Mail highlighted in our End the Cladding Scandal campaign, are stuck in properties they cannot sell or remortgage.
Sebastian O’Kelly, of the Leasehold Knowledge Partnership charity, said: ‘It’s very encouraging and another example of sanity returning to the market in the sale of flats.
‘There’s a light at the end of the tunnel for people who have been trapped in this crisis.’
Mortgage providers ceased lending to owners of flats with cladding after the 2017 Grenfell Tower fire in which 72 people died.
The tragedy highlighted safety problems in buildings across Britain. Tens of thousands of were found to be in need of extensive remedial work.
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