Apparently Barclays have just released a Re-mortgage product for people with cladding- is this true

carrotland

I was just told by the Agents whom we are selling our flat through that "Barclays have now released their re-mortgage product so I am hoping that will filter through to the buyers market shortly as well. "

Has anyone heard such a thing yet?
I am hoping if thats' true that eventually, in the not too distant future, other banks will start opening up lending so that they don't lose out on business...

ACG

I dont think it is a specific product, I think they have obtained a way to get a report that works for them (and the rest of the industry) but they are the first to launch a way to move forward for those kind of properties.

Have a look online, there is some information scattered about.

carrotland

Oh...I have seen that form...that's only useful if theres no issues with your building.
We have a rendered facade, but the insulating foam underneath was taken off the buildings regs list of approved products in 2012, so doesn't meet todays regs.
The management company are currently getting quotes and tenders for replacing it, but the whole process will take 12-18 mths apparently, for it all to be done, by which time we would have lost our onward purchase...

carrotland

I found this...maybe this is what the agent was talking about..." EWS1 certificate
A spokesperson for Barclays said the matter related to “those qualified to issue the EWS1 certificate, the number of buildings that need to be inspected and the time needed to complete this review”.

It added: “For existing Barclays Mortgages customers that have not yet been able to obtain the EWS1 certificate, we will allow them to complete a swap rate to any of our highly competitive loyalty products – or complete a product transfer. For those seeking to remortgage in order to borrow additional funds, until EWS1 certificate is available we will not provide further borrowing.”

Barclays has been instrumental in developing a document with The Royal Institution of Chartered Surveyors (RICS), The Building Societies Association (BSA), and UK Finance to address those who are unable to remortgage due to cladding issues.

The initiative was introduced in December and will be a single assessment for each building which will be valid for five years.

Santander has been approached for comment by Mortgage Solutions."

https://tandcmortgages.co.uk/news/overdue-cladding-inspections/?fbclid=IwAR2cL9VX1QyduiaIpVZBETATfW98InThje9m29PCt75Z7SDa8Bej2J10mG8

TomCollier

Hi carrotland,

This issue is not so much lender specific but rather that the valuer/surveyor is satisfied that the cladding meets the requirements set out in MHCLG Advice Note 14. I have recently had a lot of success placing mortgages for clad properties with mainstream lenders by speaking to the valuers beforehand and ensuring they are aware and whether it's ACM cladding or not. You may need to have a secondary inspection with an independent fire safety inspector which is straight forward to arrange.

Thanks,
Tom

carrotland

Hi Tom

All the reports have been done for our building, so everyone knows what the strengths and weaknesses are.
As I mentioned, its a concrete rendered building but it had insultating foam under the render and that foam when tested was found to be flammable "producing molten drops showering down!" yay!

So the management company have been trying to pressure Barratts to pay for stripping the building down and redoing the facade, and they have gotten tenders/quotes based on the known work that needs to be done to get it up to meet the current specs, at which time we could have a certificate signed off and go on our merry way...but until that work is done, which might take 12-18 mths to do the whole development of 7 buildings, we can't get that certificate.

Do you know any other way around the lending issue, as the buyer is still very keen to buy, and we are keen to sell.

Chavy89

Hi TomCollier,
Firstly thank you for your advice secondly i am trying to buy a flat and facing these issue now the ACM cladding on he building i want to buy has been removed the vendor and done an FRA and i have submitted it to my bank which clearly stated what type of cladding its been replaced with svk i think will this be enough or will they require more