Mortgages: EWS1 Form

Baroness Finlay of Llandaff Excerpts

Tuesday 29th June 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My noble friend raises an important issue about the inconsistency of the application of EWS1 forms by professionals. I point out that we are working with the British Standards Institution to produce a publicly available specification, known as PAS 9980, which is a code of practice designed to ensure greater consistency in these assessments.

[Baroness Finlay of Llandaff (CB)]

What discussions have the Minister or his officials had with the Financial Conduct Authority regarding lenders’ obligations to treat customers fairly in relation to cladding? In particular, what steps have the Government taken to ensure that leaseholders confronted with an adverse EWS1 rating, emerging during the time of a fixed-rate mortgage, are able to roll over to a new fixed rate, rather than being forced into a standard variable rate at the end of their fixed term?

[Lord Greenhalgh (Con)]

My Lords, I point out that the EWS1 form is not a safety certificate and nor is it a statutory or government document; it has been developed by the Royal Institution of Chartered Surveyors along with others. But we continue to have dialogue with the banks and building societies to ensure that they act in a proportionate and sensible way, and we continue to raise issues from time to time, as needed, with the Financial Conduct Authority.