Securing mortgages on flats affected by the building safety crisis

Mortgage lending on flats affected by the building safety crisis continues to depend on lenders being able to understand the building’s external wall risk, the likely route to remediation and who will meet the cost.

The Royal Institution of Chartered Surveyors has published an updated professional standard on secured lending valuations for multi-storey, multi-occupancy residential buildings with cladding. The new standard, effective from 1 November 2026, is intended to support a more proportionate and consistent approach to when an EWS1 form should be requested, while helping valuers identify cases where cladding or balcony remediation could affect value or saleability.

As part of the mortgage application process, lenders may ask for evidence to support their decision. This could include confirmation that any required remediation is being funded through a government scheme, developer contribution or another agreed route, or evidence that the leaseholder qualifies for protections from relevant remediation costs under the Building Safety Act. Where applicable, this can be supported by a Leaseholder Deed of Certificate completed by the leaseholder.

Individual lender policies still vary, and some mortgage applications may still require an EWS1 form or equivalent evidence. The updated RICS standard clarifies that an EWS1 form is for valuation and lending purposes only: it is not a fire safety certificate and does not replace a professional fire risk assessment. In some circumstances, a suitable PAS 9980 Fire Risk Appraisal of External Walls summary may be relied upon instead, provided it clearly states whether remedial works are required and has been completed by an appropriately qualified professional.

The Cladding Safety Scheme remains an important route for eligible buildings, and the government has announced targeted support for some buildings under 11 metres where unsafe cladding presents a high or medium action-required risk.

We continue to welcome feedback from housing associations and leaseholders on their experience of selling or remortgaging affected flats, and we are engaging with government, lenders and other stakeholders so that members can better support leaseholders who want to move or refinance.