High-Rise Flat Mortgages in the UK: What the Cladding Crisis Means for Buyers in 2026

Why Buying a High-Rise Flat Is Still Complicated in 2026

If you’ve ever tried to buy or sell a flat in a tall building, you’ll know the cladding crisis hasn’t quietly gone away. Years after the Grenfell Tower tragedy exposed the lethal danger of certain external wall systems, thousands of leaseholders across the UK are still caught in a financial no-man’s-land — unable to sell, unable to remortgage, and sometimes unable to insure their homes at a sensible price.

For buyers in 2026, the situation has improved in patches, but it remains one of the most complex areas of UK property finance. This article explains exactly what’s going on, what it means for your mortgage, and how to protect yourself before you sign anything.

What Is the Cladding Crisis, in Plain English?

After the Grenfell Tower fire in 2017, investigators found that aluminium composite material (ACM) cladding had allowed fire to spread rapidly up the building’s exterior. Subsequent surveys revealed that thousands of residential blocks across England, Scotland, and Wales had similar — or equally risky — cladding and external wall systems.

The problem for buyers and lenders is straightforward: a building with unsafe cladding is a fire risk, and a fire risk is a financial risk. Lenders won’t offer mortgages on properties they can’t properly value or insure. That’s why, almost overnight, an entire segment of the housing market effectively froze.

The EWS1 Form: What It Is and Why It Still Matters

The External Wall System (EWS1) form was introduced by UK Finance and the Royal Institution of Chartered Surveyors (RICS) in late 2019. It’s a certificate completed by a qualified professional confirming whether a building’s external wall construction poses a fire risk.

There are two broad outcomes:

• A rating — the cladding is acceptable, and a mortgage can typically proceed
• B rating — remediation work may be needed before a lender will proceed

Tip: Always ask the seller or managing agent whether an EWS1 form exists for the building before you instruct a solicitor. Getting this information early can save you hundreds of pounds in abortive costs.

In 2022, RICS updated its guidance to state that EWS1 forms aren’t required for buildings under 18 metres unless there are specific concerns. However, many lenders have their own thresholds, and some still request the form for lower-rise blocks. In 2026, practice still varies between lenders, so don’t assume anything.

What Lenders Will and Won’t Do in 2026

Most high-street lenders — including Barclays, Halifax, Nationwide, and NatWest — have published specific policies on high-rise flat lending. The general position in 2026 is:

1. Buildings with confirmed unsafe cladding and no remediation plan are essentially unmortgageable
2. Buildings with a government-backed remediation contract in place are increasingly accepted by lenders
3. Buildings that have completed remediation and hold a satisfactory EWS1 form are treated like any other property

The key phrase here is government-backed remediation contract. The Building Safety Act 2022 placed legal obligations on developers to fund cladding remediation for buildings they built in the last 30 years. By 2026, the Developer Remediation Contract has seen significant take-up, and many buildings linked to major developers are either remediated or firmly in the remediation pipeline.

That said, orphan buildings — those where the original developer no longer exists — can still face serious delays, leaving leaseholders in limbo.

The Building Safety Fund and What It Covers

For buildings over 11 metres where the developer cannot be traced or held liable, the Building Safety Fund (BSF) provides government funding for cladding removal. In England, this is administered by Homes England. Scotland and Wales have their own equivalent schemes.

If a building is registered with the BSF and remediation is underway, some lenders will now consider mortgage applications — though criteria vary significantly. Your mortgage broker will need to check each lender’s current stance, as policies are updated regularly.

Important: The BSF covers cladding remediation. Other fire safety defects — such as missing cavity barriers or combustible balconies — are not covered, and can still affect a building’s EWS1 outcome and therefore its mortgageability.

Real Numbers: What This Means for Your Finances

Let’s say you’re looking at a flat in a 2004-built block in Manchester, listed at £180,000. The building is 12 storeys high and has an EWS1 form with a B2 rating (meaning remediation is required and a mortgage is unlikely to be offered until it begins).

In this scenario:

• Most mainstream lenders will decline your application outright
• Specialist lenders may consider it, but at higher rates — potentially 1–2% above standard residential rates
• Buildings insurance for the block may already be running at three to five times normal cost, meaning your service charge is elevated
• Your solicitor should flag this in their due diligence, but you should ask specifically — don’t rely on it being volunteered

If the same flat has a confirmed remediation start date and is registered with the BSF, the picture changes. Several lenders, including some building societies, will proceed — though they may cap their loan-to-value (LTV) at 75%, meaning you’d need a £45,000 deposit rather than the £18,000 you might expect at 90% LTV.

Practical Steps Before You Buy

If you’re seriously considering a high-rise flat purchase in 2026, here’s what to do before you spend a penny:

1. Ask for the EWS1 form and check its rating before offering
2. Speak to a broker who specialises in leasehold and high-rise properties — not all advisers are familiar with the nuances
3. Check the building’s remediation status on the government’s Building Safety Programme website
4. Review the service charge accounts for the last two years — inflated insurance costs are a red flag
5. Instruct a solicitor experienced in leasehold and ask them to specifically investigate fire safety compliance
6. Contact MoneyHelper (moneyhelper.org.uk) for free, impartial guidance on your options

Is It Ever Worth Buying a High-Rise Flat Right Now?

Honestly — yes, in the right circumstances. Buildings that have completed remediation are often undervalued because buyers are nervous, which can mean genuine value for those who do their homework. With the right EWS1 rating, a solid lease, and a lender willing to proceed, a high-rise flat can still be a sound purchase.

The golden rule: never assume the cladding situation is resolved. Always verify independently, and factor potential delays and costs into your worst-case budget. The Building Safety Act has improved protections for leaseholders enormously, but the system still has gaps — and it’s buyers who pay the price when they fall through them.

This article is for informational purposes only and does not constitute regulated financial or legal advice. Always consult a qualified mortgage adviser and solicitor before making property purchasing decisions.