Cladding and EWS1: Can You Still Get a Mortgage?

The cladding crisis that followed the Grenfell Tower tragedy in 2017 has had a profound impact on the UK flat market. Thousands of leaseholders have found themselves unable to sell or remortgage because of building safety concerns. The situation has improved significantly since the worst days of 2020-2022, but cladding and fire safety remain live issues for many buildings.

Understanding the EWS1 Form

The External Wall System Fire Review (EWS1) form was introduced in 2019 as a way for buildings to demonstrate that their external wall systems (cladding) are safe. It is completed by a qualified fire engineer who assesses the building's external walls.

EWS1 Ratings

The form produces one of four ratings:

A1: No combustible materials in the external wall. No further action required. This is the best outcome.

A2: Combustible materials present but in a quantity or arrangement that does not pose a fire risk. No further action required.

A3: Combustible materials present that need further assessment but are unlikely to require major works.

B1: Combustible materials present that pose a fire risk. Remediation work is needed. This is the most problematic rating for mortgage purposes.

B2: An adequate assessment could not be completed. Further investigation needed.

Which Buildings Need an EWS1?

The requirements have evolved significantly since the form was introduced:

Buildings Under 11 Metres (Up to 4 Storeys)

Most lenders no longer require an EWS1 form for buildings under 11 metres. Following government and industry guidance, these lower-rise buildings are considered low risk for external wall fire spread.

Buildings 11-18 Metres (5-6 Storeys)

The position varies by lender. Some accept these buildings without an EWS1 if there is no visible cladding. Others still require the form. The trend is towards relaxing requirements for this height band, but check with your specific lender.

Buildings Over 18 Metres (7+ Storeys)

Most lenders still require an EWS1 form (or equivalent fire safety assessment) for taller buildings. A satisfactory rating (A1, A2, or A3) is needed for most lenders to proceed with a mortgage.

The Current Landscape

Government Remediation Programmes

The UK Government has established several programmes to fund the removal of unsafe cladding:

• Building Safety Fund: Provides grants for the remediation of buildings 11-18 metres with unsafe cladding
• ACM Cladding Remediation Fund: Specifically for buildings with the same type of cladding as Grenfell Tower (aluminium composite material)
• Developer Pledges: Over 50 developers have signed pledges to fund remediation of buildings they developed

The Building Safety Act 2022

This landmark legislation:

• Established the Building Safety Regulator
• Created a new regime for higher-risk buildings (over 18 metres or 7+ storeys)
• Extended the limitation period for building safety claims
• Required developers to contribute to remediation costs
• Introduced the Responsible Actors Scheme (developers who do not sign up face restrictions)

Leaseholder Protections

The Building Safety Act includes protections for qualifying leaseholders:

• Leaseholders in buildings over 11 metres are generally not required to pay for the remediation of historical building safety defects
• Service charge caps apply for non-cladding defects
• Building owners and developers bear the primary responsibility

Getting a Mortgage in an Affected Building

If the Building Has a Clear EWS1 (A1, A2, or A3)

Most mainstream lenders will proceed normally. The building has been assessed and does not require remediation. Keep a copy of the EWS1 form for your records and mortgage application.

If the Building Has a B1 Rating (Remediation Required)

Options are more limited but not zero:

• Some specialist lenders may consider lending if remediation is funded and has a clear timeline
• Cash buyers are not affected by mortgage requirements
• Some lenders may lend once a remediation contract has been signed, even before work is complete

If the Building Has No EWS1 Form

For buildings over 18 metres — typically high-rise flats — without an EWS1, most lenders will not proceed. Getting an EWS1 assessment requires the building's freeholder or managing agent to commission a fire engineer. Individual leaseholders usually cannot commission this themselves.

If you are stuck waiting for an EWS1, practical steps include:

• Pressuring the managing agent or freeholder to commission the assessment
• Contacting your MP for support
• Checking whether the building qualifies for government-funded assessment programmes
• Exploring specialist lenders who may accept alternative fire safety evidence

Impact on Property Values

The cladding crisis has had a measurable impact on property values in affected buildings:

• Buildings with clear EWS1: Minimal long-term impact; values have largely recovered
• Buildings in remediation: Temporary depression of 10-20% during the works period
• Buildings with unresolved B1 ratings: Significant depression of 20-40%+ due to limited buyer pool — and mortgage affordability calculations reflect this

As remediation progresses across the country, values in affected buildings are expected to recover. But timing is uncertain.

What Lenders Want to See

When you apply for a mortgage on a flat in a multi-storey building, lenders will want:

1. An EWS1 form (for buildings where required) with a satisfactory rating
2. Evidence that the building is not subject to remediation requirements — or if it is, that funding and a plan are in place
3. Confirmation of buildings insurance — some insurers have been reluctant to insure buildings with cladding issues
4. A satisfactory valuation — the surveyor will assess the building's fire safety as part of the valuation

Practical Advice

1. Research the building thoroughly before making an offer
2. Ask for the EWS1 form early in the process — do not wait until your mortgage application is underway
3. Check the building's safety case if it is a higher-risk building registered with the Building Safety Regulator
4. Factor in service charges — even with leaseholder protections, there may be costs associated with building safety improvements
5. Consider future saleability — will the cladding situation be fully resolved when you want to sell?
6. Get specialist mortgage advice — a broker can identify which lenders are currently lending on buildings with your specific circumstances

For Current Leaseholders

If you already own a flat in an affected building and are struggling to sell or remortgage:

• Check your eligibility for leaseholder protections under the Building Safety Act and leasehold reform
• Contact the managing agent about the remediation timeline
• Explore specialist lenders for remortgaging
• Consider whether your existing lender will offer a product transfer (switching to a new rate without a full application, which may not require an EWS1)
• Seek legal advice about potential claims against developers or building owners

Insurance Complications in Affected Buildings

One of the less-discussed consequences of the cladding crisis is the impact on buildings insurance. Before Grenfell, insuring a residential block was relatively straightforward. Since 2017, insurers have become far more cautious about multi-storey buildings, and premiums have risen sharply in many cases.

Why Insurance Has Become Harder

Insurers reassessed their exposure to fire risk in the years following Grenfell. Buildings with combustible cladding — or buildings where the cladding status was unknown — were seen as significantly higher risk. Some key consequences:

• Premium increases of 300-1,000% have been reported in some buildings, particularly those over 18 metres with unresolved cladding issues
• Excesses (the amount you pay before insurance kicks in) have risen from typical levels of £250-500 to £50,000-250,000+ in some affected buildings
• Some insurers have withdrawn from the residential block market entirely, reducing competition
• Policy exclusions for fire-related damage have appeared in some policies, which can be problematic for mortgage lenders who require comprehensive cover

The Impact on Service Charges

Buildings insurance is typically arranged by the freeholder or managing agent and recharged to leaseholders through service charges. When insurance premiums spike, your service charge can increase dramatically — sometimes by thousands of pounds per year. This is a direct hit to your monthly outgoings and affects mortgage affordability calculations.

What Lenders Require

Mortgage lenders require that adequate buildings insurance is in place for the property they are lending against. If a building cannot obtain comprehensive insurance — or if the insurance excludes fire damage — some lenders will not proceed. When applying for a mortgage in a multi-storey building, your conveyancer should obtain confirmation of the current insurance arrangements, including the sum insured, the excess, and any exclusions.

Specific Lender Policies on Cladding

Lender approaches to cladding have evolved significantly and continue to change. Here is a snapshot of how major lenders typically handle applications on buildings affected by cladding issues:

Halifax and Lloyds Banking Group

Generally pragmatic. They were among the first mainstream lenders to accept applications on buildings under 11 metres without an EWS1. For buildings over 18 metres, they require a satisfactory EWS1 or equivalent. They will consider applications where remediation is fully funded and contractually committed, even if work has not yet started.

Nationwide Building Society

Nationwide follows RICS guidance closely. Buildings under 11 metres do not need an EWS1. For taller buildings, a satisfactory fire safety assessment is required. Nationwide has been relatively flexible where government-funded remediation programmes are confirmed.

NatWest Group (Including RBS and Ulster Bank)

NatWest adopted a risk-based approach. They accept buildings under 11 metres without an EWS1 and require appropriate documentation for taller buildings. They have shown willingness to lend on buildings in the Building Safety Fund pipeline where a clear remediation plan is evidenced.

Barclays

Barclays requires an EWS1 for buildings over 18 metres. They have been cautious about buildings in the 11-18 metre range and may still request documentation depending on the visible cladding type. Their approach has gradually relaxed over time.

Santander

Santander follows industry guidance on EWS1 thresholds. They are generally pragmatic for buildings under 11 metres and require appropriate evidence for taller buildings.

Specialist Lenders

Some specialist lenders, including Together and Aldermore, will consider applications on buildings with cladding issues where mainstream lenders will not. Terms may include higher interest rates and larger deposit requirements (typically 25-30%), but they can provide a route to purchase or remortgage where no other option exists.

Regional Variations

The cladding crisis has not affected all parts of the UK equally. The issues are concentrated in areas with significant numbers of multi-storey residential buildings:

London

The capital has the highest concentration of affected buildings. Many luxury riverside developments built in the 2000s and 2010s have been found to have cladding issues. The scale of the problem in London means longer wait times for EWS1 assessments and remediation. However, London also has the most active specialist mortgage market, with brokers experienced in navigating cladding issues.

Manchester and Salford

The rapid development of residential towers in Manchester city centre and Salford Quays during the 2000s and 2010s has resulted in a significant number of affected buildings. Some high-profile developments have faced remediation delays.

Birmingham

Birmingham's city centre regeneration has produced a number of high-rise residential buildings, some of which have been affected. The Midlands has also seen ex-council tower blocks with cladding concerns.

Leeds, Bristol, and Other Cities

Most major UK cities with significant numbers of residential towers have some affected buildings. The number varies by city, and the progress of remediation differs across local authority areas.

Scotland

Scotland has its own building safety framework and assessment process. The Scottish equivalent of the EWS1 operates slightly differently, and some buildings in Glasgow, Edinburgh, and other Scottish cities are affected.

Valuation Challenges

Even when a building has the right documentation, the valuation process can present challenges:

What Valuers Look For

When a surveyor values a flat in a multi-storey building, they assess fire safety alongside all the usual factors. Specifically, they will consider:

• The EWS1 rating or equivalent fire safety assessment
• Whether remediation is underway, funded, or planned
• The impact of any waking watch (24-hour fire patrols) costs on the service charge
• The overall marketability of the flat given the building's safety status
• Comparable sales data — which may be limited in affected buildings where few transactions are happening

Down-Valuations

In buildings with unresolved cladding issues, down-valuations are common. The surveyor may value the property below the asking price to reflect the limited buyer pool, the potential for ongoing costs, and the uncertainty around remediation timelines. A down-valuation can derail a purchase if the buyer cannot make up the shortfall.

No Comparable Evidence

In some affected buildings, there have been very few sales for several years. Without recent comparable sales data, valuers must make judgement calls that can result in conservative valuations.

Edge Cases and Unusual Situations

Mixed-Use Buildings

Buildings that combine residential and commercial elements face additional complexity. The commercial element may have different cladding from the residential floors, and the responsibility for remediation may be split between different parties. Lenders may need separate assessments for the residential and commercial portions.

Buildings With Partial Remediation

Some buildings have had cladding removed from certain elevations but not others, or have had ACM cladding replaced but other combustible materials remain. Lenders want to see that all identified fire safety issues have been — or are being — addressed, not just the most obvious ones.

Timber-Clad Buildings

Not all cladding issues involve aluminium composite materials (ACM). Timber cladding on some buildings has been flagged as a fire safety concern, particularly where it is combined with inadequate fire breaks. The EWS1 process covers all external wall systems, not just metal cladding.

New Builds With Cladding Issues

Some buildings completed as recently as the mid-2010s have been found to have non-compliant cladding. Buyers may have purchased with an NHBC warranty, but the warranty may not cover cladding remediation if the materials used met the Building Regulations at the time of construction. The developer pledge system aims to address this, but coverage is not universal.

Waking Watch Costs

Some buildings without adequate fire alarm systems in place during remediation are required to operate a "waking watch" — a 24-hour fire patrol. The cost of this is passed to leaseholders through the service charge and can add £100-500 per flat per month. These costs reduce affordability and may cause issues with mortgage applications, even if the building itself is otherwise acceptable to the lender.

Survey Requirements and Costs

If you are buying in a multi-storey building, the typical survey costs include:

• Lender's valuation: £250-600 (sometimes free as part of a mortgage deal)
• HomeBuyer Report (Level 2): £400-800 — useful but may not address cladding issues in depth
• Building Survey (Level 3): £600-1,500 — more comprehensive, but cladding assessment is typically beyond the scope of a standard building surveyor
• EWS1 assessment: The cost of commissioning an EWS1 falls on the building (freeholder or managing agent), not individual leaseholders. However, the cost per building ranges from £5,000 to £50,000+ depending on size and complexity, and this is typically recharged through the service charge

The key document is the EWS1 form itself. If the building has one with a satisfactory rating, the surveyor and lender should be satisfied. If the building does not have one, or has a B1 or B2 rating, the survey process effectively stalls until the fire safety situation is resolved.

This is educational content, not financial advice. Your situation is unique — speak to a qualified mortgage broker before making any decisions.