Virgin Money, TSB and Skipton Building Society have become the latest firms to add their names to the government’s tower block cladding safety scheme.
The three lenders will now consider mortgage applications in England for blocks that are 11 metres, or five storeys and above, with building safety issues that are yet to be remediated, or where leaseholders are protected from remediation costs.
“This gives those looking to buy, sell and remortgage more choice, allowing people to get on with their lives,” says the Department for Levelling Up, Housing and Communities.
The UK’s flat sale market has been severely curtailed for several years following the 2017 Grenfell Tower fire, which killed 72 people, leading to a fire safety crisis over dangerous cladding.
Uncertainty over the safety of tall blocks, and who is liable for repairs, made it difficult for borrowers to secure a loan to buy, sell, or remortgage flats impacted by cladding.
The move comes after the publication of updated guidance on tower block safety from Rics and the Building Safety Act 2022, covering funding to remove or improve cladding on these properties.
Barclays Bank, HSBC, Nationwide Building Society, NatWest, Santander, the Building Societies Association and UK Finance are among the firms that signed up to the government’s scheme to lend those with homes in tall blocks last December.
Over three quarters of mortgage lending within England is now covered by the commitment, the department now says.
Minister for building safety Lee Rowley adds: “I am extremely pleased to see three new lenders doing the right thing and supporting leaseholders who are stuck in homes with building safety defects.
“This is a further sign of the market’s confidence in the solutions that we have put in place to protect leaseholders.”
