The EWS1 Process and Current Lender Requirements
The EWS1 (External Wall System) form was introduced in December 2019 as a standardised assessment tool for mortgage lenders to receive assurance about the fire safety of a building's external wall construction. Produced by a qualified professional — typically a chartered fire engineer or RICS-accredited assessor — the EWS1 form records the composition of the external wall, including any cladding systems, insulation, and attachments, and provides one of two outcomes: an A rating (no combustible materials, or low risk) or a B rating (combustible materials present), with sub-categories indicating whether remediation action is required.
An A1 or A2 rating indicates that the external walls are either free of combustible materials or that any combustible elements present do not require remediation. Most mainstream lenders will accept an A-rated EWS1 and proceed with mortgage applications without restriction. An A1/A2 rating represents the most straightforward pathway back to mainstream mortgageability for affected buildings, and completing EWS1 assessments that result in A ratings has been a priority for the government and housing industry.
A B1 rating indicates that combustible materials are present in the external wall but that, based on the professional assessment, no remediation action is currently recommended — perhaps because the overall fire risk is low despite the presence of some combustible elements. Some lenders will lend on B1-rated buildings; others will not. Where a lender is willing to consider B1, they may apply a restricted maximum LTV or require additional evidence of the building's fire management measures. A broker with current knowledge of lender policies will know who is currently lending on B1 and on what terms.
A B2 rating is the most challenging outcome. It indicates that combustible materials are present and that remediation action is required. Most mainstream lenders will not offer new mortgages on B2-rated buildings pending completion of the required remediation. However, existing borrowers in B2-rated buildings may still be able to do a product transfer with their current lender, and some specialist lenders have developed products for buildings with a clear, funded remediation plan. The position changes as remediation work is completed and buildings move from B2 to A-rated status.
Building Safety Act 2022: Key Leaseholder Protections
The Building Safety Act 2022 represents the most significant reform to building safety legislation in decades and introduced critically important financial protections for leaseholders of qualifying buildings. The Act defines a qualifying building as a residential building in England above 11 metres or five storeys. Qualifying leaseholders — those who owned their flat before 14 February 2022 and who own a limited number of residential properties — are protected from being charged for cladding remediation costs. The responsibility for funding cladding remediation is placed on developers, freeholders, and building owners who are responsible for the defects.
The developer remediation contract, signed by major UK house builders and developers in early 2023, commits over 50 developers to fund the remediation of buildings they were responsible for constructing. This has accelerated remediation activity significantly for buildings where the original developer is still in business and has signed the contract. For buildings where the developer no longer exists or has not signed, the Building Safety Fund and the Cladding Safety Scheme provide government funding for remediation.
From a mortgage lender's perspective, the Building Safety Act protections have improved confidence in the affected property market. Where qualifying leaseholder protections are clearly in place and a funded remediation pathway exists, some lenders have been willing to reconsider applications they would have declined in 2020 or 2021. The Act has not resolved the problem overnight — lenders still need to be confident about the specific remediation timeline and funding for a given building — but it has moved the market forward meaningfully for a significant number of affected properties.
Non-qualifying leaseholders — including buy-to-let investors who own more than three properties, and those who purchased after 14 February 2022 — have more limited protections under the Act. These owners may face some share of non-cladding remediation costs for works such as fire alarm upgrades, additional fire doors, or waking watch arrangements, subject to prescribed caps based on the property's value. Understanding whether you qualify for full or partial protections requires reviewing your specific situation against the Act's criteria, and legal advice is recommended where there is any uncertainty.
