Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential exposure of banks in respect of buildings owned by banks that have flammable cladding.

HM Treasury would not routinely assess banks’ exposures to mortgages in the UK on properties with potentially combustible cladding.

Lenders account for exposures to potentially combustible cladding by developing their own policy based on a number of factors including their individual risk appetites and lending policies.

It is also worth noting that lenders have agreed that existing borrowers living in properties with potentially combustible cladding, who are not looking to borrow additional funds, should be able to arrange a product transfer with their existing lender.