Mortgages: Loans
The question
To ask the Secretary of State for Housing, Communities and Local Government, what steps his Department is taking with the (a) financial sector and (b) regulators to help ensure that mortgage lenders provide loans to leaseholders affected by building safety issues in the period after the Grenfell Tower fire.
Answered by Samantha Dixon
Officials in my department have regular engagement with financial sector stakeholders. A product of this is the lenders’ statement on cladding which has signatories from ten major banks and building societies.
These lenders have committed to consider mortgage applications, even if a property has building safety issues, provided either the building has funding for works from government or the developer, or the property is protected by the leaseholder protections in the Building Safety Act, and the leaseholder has completed a ‘Leaseholder Deed of Certificate’ to evidence it.
Officials have well-established relationships with regulators should the need arise to discuss a particular issue.
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