Mansfield Building Society Extends Mortgage Reach to 10-Storey Tower Blocks
As the UK’s flat sale market continues to recover from the 2017 Grenfell Tower fire, Mansfield Building Society has taken a significant step forward by extending its mortgage offerings to include flats in tower blocks of up to 10 storeys. This move marks a significant shift in the society’s policy, which previously capped its mortgage lending at four storeys.
City centre living
The new policy includes flats over commercial units and city centre flats, which will be underwritten on the same terms. This means that borrowers can now access mortgages of up to 90% loan-to-value (LTV) for residential properties and 75% LTV for buy-to-let properties. For new build flats less than 12 months old, the LTV is capped at 85% for residential and 70% for buy-to-let.
According to Tom Denman-Molloy, intermediary sales manager at Mansfield Building Society, “Increasing the number of storeys for flats extends our appeal, particularly in cities, where high-rise blocks are an essential part of the property mix.”
The UK’s flat sale market has been severely curtailed in recent years due to uncertainty over the safety of tall blocks and who is liable for repairs. However, with the publication of updated guidance on tower block safety from Rics and the Building Safety Act 2022, lenders are now more confident in lending to borrowers in these properties.
Cladding safety concerns
In fact, several major lenders, including Barclays Bank, HSBC, Nationwide Building Society, NatWest, Santander, the Building Societies Association, and UK Finance, have signed up to the government’s scheme to lend to those with homes in tall blocks.
As a result, over three-quarters of mortgage lending within England is now covered by the commitment, according to the Department for Levelling Up, Housing and Communities.
This move by Mansfield Building Society is a welcome development for borrowers and lenders alike, and marks a significant step forward in the recovery of the UK’s flat sale market.
Mortgage lending on the rise
As the market continues to evolve, it will be interesting to see how other lenders respond to this move. Will they follow suit and extend their mortgage offerings to include taller tower blocks? Only time will tell, but one thing is certain - this is a positive development for the UK’s property market.
Property market on the up
