There has been an increase in the number of lenders asking for cladding reports before they will provide mortgages.
Trinity Financial’s brokers are speaking to more clients who are struggling to purchase properties or switch to cheaper deals because of cladding report issues.
Banks and building societies expect to see copies of fire reports outlined by the MHCLG Advice Note to ensure buildings are safe. If properties with cladding do not have these reports, the mortgage process can slow down significantly because they can take months to produce.
Aaron Strutt, product director at Trinity Financial, says: "If cladding of a combustible nature is thought to be present the property cannot be assessed for mortgage purposes without further information.
"Lenders will require information from the building owner/management company in their capacity as the legally ‘responsible person’ for the safety of their buildings to confirm the type of cladding/insulation used on the building. They will need confirmation a review of the building has been carried out by a suitably qualified independent expert in accordance with the decision tree in MHCLG Advice Note 14.
"Even once the report has been sent to the lender further information may be requested to confirm the property is suitable for lending. For more information click on this government link."
A certificate that identifies which cladding-covered properties meet safety regulations is set to be announced in the next few weeks, according to Barclays.
The Royal Institution of Chartered Surveyors (RICS), UK Finance and the Building Societies Association have been working to find a solution to the issue which has seen buyers struggle to purchase a property, and leaseholders unable to sell or remortgage their properties.
Call Trinity Financial on 020 7016 0790 to secure a mortgage