Cladding Remediation Programme: factsheet

Mortgage lending and insurance in Scotland

Mortgage and insurance on multi-residential properties with unsafe cladding

We are committed to working with the mortgage lending and insurance industry to assist in their understanding of the Single Building Assessment (SBA) and Cladding Assurance Register. Through communication with the mortgage lending and insurance industry, we further understand their approach to risk based decision making in Scotland. Mortgage lending and insurance is a reserved matter to UK Government. We continue to work with the UK Government to help address the issues and implications on the financial wellbeing experienced by homeowners in Scotland.

The Cladding Assurance Register should support mortgage lending and insurers in better understanding the risks associated with multi residential cladded properties in Scotland. This information clarifies risks and their reduction after remediation, helping to address any underlying building safety concerns from the industry. The risk reduction will be as a result of the completed remediation works undertaken as a result of the SBA and report.

EWS1 form

The EWS (External Wall System) process, resulting in an EWS1 Report, was developed by the Royal Institution of Chartered Surveyors (RICS), UK Finance and the Building Societies’ Association in 2019 and developed in England. It is not a building safety form or a legal requirement.
The EWS1 provides a way for those selling multi residential flatted properties with external wall cladding systems to show that these properties have been assessed by an expert. This assessment is used by valuers to determine whether remediation works with a material impact on valuation might be needed, and used by mortgage lenders in considering whether to lend on the property.

The Scottish Government cannot issue an EWS1 form as it is not a government document. An EWS1 is not equivalent to a Single Building Assessment (SBA).