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Virgin Money, TSB, & Skipton Building Society expand mortgage offerings cladded flats


Virgin Money, TSB, & Skipton Building Society expand mortgage offerings cladded flats

In a significant move aimed at supporting individuals impacted by building safety concerns, Virgin Money, TSB, and Skipton Building Society have announced their willingness to consider mortgage applications for properties facing remediation issues or where leaseholders are shielded from associated costs.


This development follows in the footsteps of six major lenders—Santander, HSBC, NatWest, Nationwide, Barclays, and Lloyds Banking Group—who made a similar commitment a year ago. With the addition of Virgin Money, TSB, and Skipton Building Society, over three-quarters of mortgage lending in the country is now encompassed by this commitment, as noted by the government.


Under the arrangement, subject to their standard policy requirements, these lenders will entertain mortgage applications for properties in buildings located in England with building safety issues that are 11 meters or five storeys high and above. However, buildings excluded from these protections, such as those below 11 meters in height, do not fall under the purview of this initiative.


Importantly, there is no prerequisite for a building to have undergone remediation. Eligibility extends to properties undergoing self-remediation by developers, those covered by recognised government schemes, or those safeguarded by leaseholder protections outlined in the Building Safety Act.


Housing Minister Lee Rowley welcomed this development, hailing it as a testament to the market's confidence in the solutions devised to safeguard leaseholders. He emphasised that customers impacted by building safety issues now have expanded options when seeking to purchase or remortgage properties. Rowley urged more banks and building societies to follow suit and join the commitment initiated by Virgin Money, TSB, and Skipton.


Karen Appleton, Head of Lending at Skipton Building Society, emphasised the institution's collaboration with governmental bodies and industry experts to extend support to customers affected by the cladding crisis, thereby fostering greater accessibility in the lending market for flats.


Similarly, Craig Calder, Head of Secured Lending at Virgin Money, highlighted the close collaboration with relevant authorities and industry partners to streamline lending processes and ensure additional support for customers grappling with the cladding crisis.


This expansion in mortgage offerings signifies a concerted effort by financial institutions to address the pressing concerns surrounding building safety, offering relief to affected individuals while facilitating smoother transactions in the property market.

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