The Bank of England has said that the cladding crisis poses a real risk to the UK’s financial stability.
The bank is increasingly concerned about the impact of the crisis, and has been pressuring lenders to audit their exposure to homes that might be unsellable, according to three people with knowledge of the situation.
They added that the Prudential Regulation Authority, the BoE body responsible for supervising banks, believes the government has not yet grasped the scale of the crisis and expects the costs to mortgage lenders will be larger than those outlined so far.
