Virgin Money, TSB, and Skipton Building Society have announced their commitment to offering mortgages on properties affected by building safety issues.
This decision will enable more people to buy, sell, and remortgage properties in buildings that are yet to be remediated or where leaseholders are shielded from remediation costs.
With these three lenders joining the initiative, over three-quarters of mortgage lending in England is now covered by the commitment.
The commitment, supported by UK Finance and the Building Societies Association, was initially made by the six largest lenders a year ago.
Minister for Building Safety, Lee Rowley, said: “I am extremely pleased to see three new lenders doing the right thing and supporting leaseholders who are stuck in homes with building safety defects.
“This is a further sign of the market’s confidence in the solutions that we have put in place to protect leaseholders.”
Karen Appleton, head of mortgage lending at Skipton Building Society, said: “I’m really proud that Skipton Building Society has worked with DLUHC and industry experts to make it possible to sign up to the joint statement, in order to further support customers impacted by the cladding crisis and to play a part in opening up the lending market for flats.”
Julian Adams, head of property risk at TSB, added: “TSB is pleased to support the Industry Statement and to offer borrowers greater choice when seeking a mortgage.”
The announcement underscores the ongoing efforts to protect leaseholders in buildings with fire safety defects from unfair costs.
This commitment is part of a broader governmental initiative following the Grenfell Tower tragedy in 2017, including the introduction of stringent building safety regulations through the Building Safety Act.
The Act aims to ensure that those responsible for unsafe cladding bear the costs of remediation, not the blameless leaseholders.
The Leasehold and Freehold Reform Bill, recently introduced to Parliament, is set to further protect leaseholders by amending the Building Safety Act 2022.
It will facilitate holding those responsible for building safety defects accountable and ensure fair treatment of joint property owners.
Additionally, the Government is consulting on capping ground rents for existing leases to protect leaseholders from unregulated charges.
