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Major banks to change mortgage rules – and hundreds of thousands of customers could benefit

Major banks have announced a change to their mortgage rules which could benefit thousands of customers.

The change affects homeowners who are living in buildings with cladding.


Lloyds Banking, HSBC, Santander, Barclays, NatWest and Nationwide have announced they will be scrapping EWS1 certificates for those who are living in blocks of flats in England that are five floors or taller.

This will see the mortgage providers ditch lending bans.

An EWS1 certificate grants a certain rating after high-rise properties have had an External Wall Fire Review - without this certificate, most banks won't offer the homeowner a mortgage.

The change has been made since new guidance was published by the Royal Institution of Chartered Surveyors (RICS) on how to assess properties for fire safety.


Jas Singh, chief executive of consumer lending at Lloyds Banking Group, said: "We have worked closely with housebuilders and RICS to find a solution for homeowners, so we warmly welcome the updated guidance for valuers on homes with external cladding.


"While we have continued to lend on properties with cladding where possible, this move will really simplify things for those buying homes in properties five storeys or above (11m).

"We hope this will continue to open up the market for those in affected properties, bringing peace of mind to homeowners."

The changes will come into place from January 9, 2023.

Full article at https://www.thesun.co.uk/money/20814094/major-bank-to-change-mortgage-rules/

 

Major banks to change mortgage rules – and hundreds of thousands of customers could benefit

20.12.22

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