Three high street lenders, Virgin Money, TSB and Skipton Building Society, have joined the commitment to offer mortgages on properties affected by building safety issues.
Virgin Money, TSB and Skipton Building Society have added their names to a statement already signed by six major lenders which sees those affected by building safety issues being given more choice if they want to buy, sell or remortgage their home.
That means that 75% of mortgage lending is now covered by this commitment, which previously has particularly impacted those living in high rise properties.
In short, these three lenders (alongside the others already on board) will now consider mortgage applications for properties in buildings that are yet to be remediated, or where leaseholders are protected from remediation costs.
Supported by UK Finance and the Building Societies Association, Virgin Money, TSB and Skipton Building Society are among the latest lenders to add their names to the statement, a year after the first six largest lenders made the same public commitment.
Minister for Building Safety, Lee Rowley, said:
“I am extremely pleased to see three new lenders doing the right thing and supporting leaseholders who are stuck in homes with building safety defects.
This is a further sign of the market’s confidence in the solutions that we have put in place to protect leaseholders.
From today, customers impacted by building safety issues will have more choice when looking to buy or re-mortgage. I would encourage more banks and building societies to join the commitment made by Virgin Money, TSB and Skipton.”
Karen Appleton, Head of Mortgage Lending at Skipton Building Society, commented:
“I’m really proud that Skipton Building Society has worked with DLUHC and industry experts to make it possible to sign up to the joint statement, in order to further support customers impacted by the cladding crisis and to play a part in opening up the lending market for flats.”
Julian Adams, Head of Property Risk at TSB, added:
“TSB is pleased to support the Industry Statement and to offer borrowers greater choice when seeking a mortgage.”
Craig Calder, Head of Secured Lending at Virgin Money, said:
“We’re always looking for ways to support our customers. Working closely with the Department of Levelling Up, Housing and Communities and e.surv, our valuation Panel Manager, we’ve streamlined our lending processes and signed up to the joint statement on cladding to ensure customers impacted by the cladding crisis receive the additional support they require.”
