Cladding and EWS1 Property Mortgages Over 55s

The EWS1 form is the standard industry document confirming the external wall system of a block. An EWS1 form categorises the block under one of several options: A1 (no combustible materials in the external wall), A2 (combustible materials present but the wall is adequately designed), A3 (remediation required with a specific timeframe), B1 (combustible materials in external wall but risk is low), or B2 (significant risk requiring remediation). Lender appetite tracks the EWS1 category closely. A1, A2, and A3 with remediation complete are widely mortgageable. B1 is accepted by many lenders. B2 is more specialist, with remediation funding typically being a prerequisite for lending.

The Building Safety Act 2022 and related government funding schemes (including the Building Safety Fund and the Cladding Safety Scheme) have committed funding for remediation of specific higher-risk blocks. Where a block is confirmed for funded remediation, the mortgage position often improves because lenders can see that the remediation will happen. The specific funding status of the block is worth establishing early.

Properties below 18 metres (typically around six storeys) were outside the mandatory EWS1 requirement, though many lenders still requested one for blocks of 11 to 18 metres. The position has evolved over time, with mortgage lenders generally taking a less strict approach for low-rise blocks unless specific combustible materials are identified.

Specific cladding materials have specific lender profiles. Aluminium Composite Material (ACM) panels similar to those at Grenfell were the initial focus of post-2017 concern and remediation. High Pressure Laminate (HPL) panels raised similar concerns. Timber cladding has its own considerations, particularly where it is attached to a combustible substructure. Specialist lenders with current experience of each material category tend to provide the most workable routes.

For equity release on cladding-affected properties, the considerations are the same as for standard mortgages but with additional attention to the expected timeline. Because lifetime mortgages run for many years, a block currently in remediation may be fully resolved well before the end of the mortgage term, which some lenders view favourably. Where remediation is complete with a clean post-remediation EWS1, the property is often equivalent to a non-cladding case for lender purposes.

The Process

Your first conversation is a relaxed discussion about the block, the EWS1 status, any remediation funding or works, and your circumstances. The more detail you can share at this early stage about the block, the quicker we can narrow down which lenders may be suitable.

We may ask you to gather supporting documentation such as the current EWS1 form, any remediation plan, and correspondence from the freeholder or managing agent about the works. We research the market and come back with a written recommendation.

Every cladding case is different. A block with a clean A1 EWS1 form is a very different case from one awaiting remediation under the Building Safety Fund, and our recommendations reflect those differences.