The publication of the draft Building Safety Bill is a good time to reflect on the impact fire safety concerns have had on mortgages.

The risks associated with combustible cladding are becoming ever clearer and will result in many blocks of flats needing work to make them safe. This comes at a cost, and while there is government support available for some homeowners there is an impact on the valuation of individual flats.

Working with the Royal Institution of Chartered Surveyors (RICS) and the Building Societies Association (BSA), UK Finance put in place the External Wall Fire Review process to establish a way of ensuring that lenders and valuers have the information they need from building owners to value properties in high-rise blocks. Hundreds of blocks have already been assessed with many homeowners and homebuyers being able to secure mortgages as a result but there is still more to do.

We understand the concerns raised about homeowners being unable to remortgage or sell their flats because an assessment had not been carried out. Lenders may be unwilling to increase a mortgage or provide one to new customers hoping to buy or remortgage but the vast majority will provide a ?product transfer? to their existing customers. This means that a flat owner in a block waiting assessment, or where remediation works are needed, will be able to get a new mortgage product with their existing lender if they are not borrowing any additional money. If for example, your two-year fixed rate comes to an end you?ll be able to get another two-year fixed rate with your current lender - you won't be left on the lender's more expensive standard variable rate as lenders have agreed to continue to offer product transfers to existing customers. Customers should contact their lender if they are on a reversion rate or SVR to see what their lender can offer them.

In the longer term, the Building Safety Bill will include requirements for building owners to investigate cladding as part of a building's fire risk assessment. It is vital that the government ensures that the scale and speed at which these assessments are carried out is ramped up dramatically, and that the results can be shared with lenders and valuers in a format which can directly feed into valuations. It is only by assessing and fixing buildings at risk that we can ultimately resolve fire safety concerns.