Understanding EWS1 Mortgages: A Comprehensive Guide

As per the new regulations and evolving landscapes of the UK property market, the government has introduced the EWS1 form to ensure that all residential properties with combustible cladding are safe. The purpose of this form is to provide assurance to potential buyers and lenders that a building is safe from the risk of fire. The issuing of an EWS1 certificate is not mandatory, but it can be requested by lenders and buyers for reassurance. In this article, we will explore the topic in detail and answer the frequently asked questions, such as

What is the EWS1 Form?

Why is the EWS1 Form Important?

How Can EWS1 Forms Be Obtained?

What are the different EWS1 ratings for mortgages?

What is the EWS1 Form?

The EWS1 form is a document that must be completed and signed by a qualified professional to certify the structural safety of tall buildings, specifically those that have a height of over 18 metres. The form assesses the building’s external elements, such as fire safety, and evaluates internal safety features, including emergency lighting and exit plans. It also includes a risk assessment of the building’s cladding and other combustible materials to ensure that the property is safe for occupation.

Why is the EWS1 Form Important?

The EWS1 form is important both for homeowners’ potential new buyers and mortgage lenders. Here we will outline why it is important for both parties.

For Homeowners:

The EWS1 form provides assurance to the homeowner that their property is safe from fire and other external risks, as well as evaluating internal safety features such as emergency lighting and exit plans. It also helps the homeowner understand what potential problems or issues they may face in the future with regard to their building’s safety and how to go about addressing them.

For Potential New Buyers:

The EWS1 form is also important for potential new buyers, as it helps them understand the safety of a property they are looking to purchase. It can be used to verify the building’s safety and provide peace of mind that any fire risk has been assessed before they commit to a purchase.

For Mortgage Lenders:

The EWS1 form is a critical tool for mortgage lenders. It helps them evaluate the risk of loaning money to a potential borrower, as well as assess the safety of the building they are lending against. By reviewing the EWS1 form, lenders can determine whether or not they feel comfortable offering finance on a property and can assess whether there are any potential risks that need to be addressed prior to lending.

How Can EWS1 Forms Be Obtained?

EWS1 forms can only be obtained from a qualified professional, such as an architect or surveyor. The professional will assess the building in question and provide their opinion on whether it meets the required safety standards for loan purposes. It is important to note that the form cannot be completed without the approval of the building’s freeholder, and it is their responsibility to provide evidence that the building meets the required safety standards.

What are the different EWS1 ratings for mortgages?

EWS1 ratings are used to identify the fire safety of the external wall system of a property. These ratings are provided by qualified fires safety engineers.

In this section, we will explain the different types of mortgages as per the EWS1 ratings.

EWS1 B1 rating mortgage

A mortgage with an EWS1 B1 rating is a loan offered to those homeowners whose property has been certified as having no combustible external wall materials. This type of mortgage has become increasingly popular in the UK property market as lenders are becoming more aware of the potential fire risks posed by certain buildings and want assurance that their money is safe.

EWS1 B2 rating mortgage

A mortgage with an EWS1 B2 rating is a loan offered to those homeowners whose property has been certified as having some combustible external wall materials but not at a significant level. This type of mortgage is slightly riskier for lenders, as it means that the building may be more prone to fire and therefore require more attention in terms of safety measures.

EWS1 A1 rating mortgage

A mortgage with an EWS1 A1 rating is a loan offered to those homeowners whose property has been certified as having combustible external wall materials that could pose a risk of fire. This type of mortgage is the riskiest for lenders, as it means that the building may require extensive safety measures and immediate attention to protect its occupants and the lender.

EWS1 A2 Rating Mortgage

A mortgage with an EWS1 A2 rating is a loan offered to those homeowners whose property has been certified as having combustible external wall materials that could pose a risk of fire but not to the same degree as an A1-rated building. This type of mortgage is slightly less risky for lenders, and they may be more willing to offer the loan if the building’s safety is taken into consideration.

EWS1 A3 Rating Mortgage

A mortgage with an EWS1 A3 rating is a loan offered to those homeowners whose property has been certified as having combustible external wall materials that could pose a slight risk of fire. This type of mortgage is the least risky for lenders, as it means that although the building may have some combustible materials, they are not expected to cause any significant danger. As such, lenders may be more willing to offer finance on this type of property.

What are the different steps for improving EWS1 ratings in the UK?

When it comes to improving EWS1 ratings in the UK, there are a number of steps that can be taken to ensure that the building meets the required safety standards. Firstly, it is essential to have a qualified fire safety engineer assess and certify the building. They will be able to identify any potential risks present and provide their opinion on how they should be addressed.

Once these concerns have been identified, the property’s freeholder should take steps to fix them. This may include installing fire safety measures such as fire doors, sprinkler systems and smoke detectors. In addition, they should ensure that all combustible materials are removed from the building and replaced with non-combustible ones. Finally, they should arrange for an updated EWS1 form to be completed in order to confirm that the building is now compliant.

What is meant by EWS1 Mortgage?

An EWS1 mortgage is a type of loan that is specifically designed to help homeowners in the UK secure finance when purchasing a property that has been certified as having combustible external wall materials. This form of financing is becoming increasingly popular among lenders as it helps to protect their investment by ensuring that the building will meet certain safety requirements. In order for a homeowner to qualify for an EWS1 mortgage, they must have a qualified engineer assess and certify the property. Once this assessment has been completed, many lenders will then be willing to offer finance on the property. If you are interested in applying for an EWS1 mortgage, we would suggest you contact a mortgage broker who can help you with your mortgage application.

Next Steps

Getting a mortgage with EWS1 ratings in the UK can be a daunting task, but it is essential to ensure that your building meets the necessary safety requirements. If you are considering purchasing or refinancing a property with combustible external wall materials, then we recommend that you contact a qualified fire safety engineer and mortgage broker to guide you through the process. They will be able to provide advice on how best to improve the EWS1 rating.

FAQs

What is the significance of the EWS1 form in relation to “EWS1 mortgages” and properties with cladding?

The EWS1 form, introduced post-Grenfell Tower tragedy, is a crucial document that assesses the safety of the external wall system, especially concerning combustible material. For “EWS1 mortgages,” this form is pivotal as many mortgage lenders require it to ensure that properties with cladding meet the necessary safety standards. Without this form, properties with cladding might face challenges during the mortgage application process.

How does unsafe cladding impact the valuation process for flats in buildings, especially during a mortgage application?

Unsafe cladding can significantly impact the valuation process. When a property, especially flats in buildings, is found to have dangerous cladding or does not meet the safety regulations, its market value can decrease. Mortgage lenders, during the application process, might either reject the mortgage application or offer a reduced loan amount. This is because the property is seen as a potential risk, and lenders want to ensure they’re not financing a potential liability.

What role do major banks like Lloyds Banking Group and Virgin Money play in the cladding scandal and the building safety crisis?

Major banks, including Lloyds Banking Group and Virgin Money, are among the biggest stakeholders in the mortgage lending market. In the wake of the cladding scandal and building safety crisis, these banks have had to re-evaluate their lending policies. Many have introduced stricter requirements, demanding EWS1 forms or other safety assessments before approving mortgages on properties with cladding. Their role is to act as responsible lenders, ensuring that they’re not financing properties that might pose safety issues or devalue due to cladding concerns.

How can a flat owner or building owner ensure that their external wall system is safe and meets the relevant building regulations?

A flat owner or building owner should hire a qualified professional, preferably a specialist fire engineer, to conduct a thorough assessment of the external wall system, including the cladding. The professional will evaluate the materials used, the design, and other factors to determine if the building meets safety regulations. If issues are found, cladding remediation might be necessary. Obtaining an EWS1 form, especially after a positive external wall fire review, can also provide assurance to property owners and potential buyers about the building’s safety status.

What are the implications for potential buyers, especially cash buyers, looking at high-rise properties or flats with cladding systems?

Potential buyers, including cash buyers, need to be vigilant when considering high-rise properties or flats with cladding systems. The presence of combustible cladding or non-compliance with safety regulations can pose a safety issue and affect the property’s value. It’s essential to request an EWS1 form or a valid building control certificate to ensure the property’s safety. Additionally, prospective buyers should be aware of the potential challenges in the lending market if they decide to mortgage the property in the future. Being informed and proactive is key to making a safe and sound investment.