Industry Update: New Mortgage Guidance PROVIDES Clarity for Cladding-Affected Flats

Published: 25/04/2025

Leaseholders and prospective buyers attempting to purchase, sell or remortgage flats in buildings over 11 metres affected by unsafe cladding have received a welcome update. Following a refreshed industry statement published by UK Finance, endorsed by leading mortgage lenders and RICS, this new clarification aims to restore confidence in the market for flats affected by unsafe cladding.

Key Points of the Original Statement

Mortgage Access on Residential Buildings With Cladding: From 9 January 2023, lenders agreed to consider mortgage applications on buildings in England over 11 metres high, provided there is evidence of self-remediation by developers, coverage under a recognised government scheme (such as the Building Safety Fund or Cladding Safety Scheme), or leaseholder protection under the Building Safety Act 2022.

April 2025 Revisions From The New Statement

EWS1 Forms Over Five Years Old

Original EWS1 forms, introduced in 2019 with a nominal five-year lifespan, are now nearing expiry and needing renewal ahead of a property sale. Lenders have now agreed not to demand wholesale re-surveys when these forms fall outside their initial validity, subject to individual risk policies. Alternative evidence, such as a valid Leaseholder Deed of Certificate or a FRAEW, may now also be accepted.

Invalid Signatory of EWS1 Forms

Where an EWS1 form was signed by someone no longer meeting professional competence criteria, lenders will again avoid blanket re-surveys, at their discretion and may rely on supporting documentation:

Inclusion in a recognised remediation scheme
Statutory Fire Risk Appraisal of External Walls (FRAEW)
Building Safety Act leaseholder protections

Implications for Buyers, Sellers, and Leaseholders

Streamlined Mortgage Applications: Mortgage applicants in affected blocks should experience fewer delays, even if their EWS1 forms are older or technically imperfect.
Broader Evidence Base: FRAEW reports and statutory leaseholder certificates will become more important as an alternative proof of safety compliance.
Ongoing Valuation Consistency: RICS will monitor the impact of the guidance to ensure valuers apply a consistent approach across cladding-affected properties.

Read the full UK Finance Lender Statement

How Harris Associates Can Help

As RICS-regulated consultants on the Homes England panel of approved Fire Risk Assessors, specialising in both FRAEW and EWS1 assessments, Harris Associates is ideally placed to support clients through this evolving landscape with our in-house facade team.

Our services include:

EWS1 Certification: Fast, compliant surveys for new or renewed EWS1 certificates carried out by qualified professionals.

FRAEW Assessments: Statutory external wall safety appraisals under PAS 9980, accepted by lenders as an alternative evidence source.

Remediation Strategy Advice: Guidance on government-funded schemes and leaseholder protections to satisfy mortgage requirements.

Learn about our Facade Services

With expertise in statutory compliance, a proven track record in facade remediation, plus our industry-leading PI, Harris Associates is ready to discuss your FRAEW and EWS1 needs.