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TSB updates cladding and estate fee criteria; NatWest blocks remortgages during payment holidays

  • 03/08/2020
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TSB updates cladding and estate fee criteria; NatWest blocks remortgages during payment holidays
TSB has raised the maximum acceptable estate management charge and updated its lending policy on EWS1 cladding forms while NatWest has confirmed its stance on remortgages for borrowers taking payment holidays.


On all properties built since January 2005, TSB has increased its previous cap of 0.1 per cent to the higher of 0.2 per cent of the market value or £500.

Estate management fees or rent charges are costs paid by homeowners on a private housing estate to maintain, renew and repair the shared amenities and spaces that their local council has not adopted.

Mortgage Solutions reported that TSB introduced its previous cap in February, after Santander, Barclays and Nationwide had all adopted a tough stance on costly freehold and leasehold fees.

The 2005 deadline is significant, said TSB at the time of reporting, because homes built after this year are more likely to have onerous clauses.

Buy-to-let applications for properties that do not meet the minimum Energy Performance Certificate (EPC) regulations will now be declined and will not proceed until the property has been improved to meet the minimum requirements.

The energy efficiency standards for a minimum EPC rating of E was introduced from 1 April for all residential privately rented homes in England and Wales.


Fire safety assessments

The bank said it cannot lend on properties with external walls and balconies consisting of potentially combustible materials, unless borrowers can provide an acceptable External Wall Fire Review report or EWS1 form to confirm the fire safety of the building with no remedial works being required.

TSB said it will accept the EWS1 form as an alternative to a full fire safety report for an individual property within a building. It must be accompanied by a letter from the fire safety expert who completed the report.

Any decision in principles for pipeline applications started before today, won’t be impacted by these changes.

Mortgage Solutions has reported on serious concerns and mounting delays for borrowers wishing to sell or buy properties requiring EWS1 forms and the government is pressuring lenders on the subject.



NatWest has confirmed it will not accept a remortgage application from a borrower who is on a payment holiday.

In an update to its criteria, the bank said borrowers must be able to show they are able to maintain their payments.

Borrowers must finish their payment holiday period with their existing lender and make at least one full monthly scheduled payment after the holiday has ended.


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