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One in seven mortgages in England are tied to flood-risk postcodes, with London and Lincolnshire most exposed, FCA finds

Residential streets submerged by floodwater, as the Financial Conduct Authority warns millions of homeowners' biggest assets are at risk from rising flood danger.
Residential streets submerged by floodwater, as the Financial Conduct Authority warns millions of homeowners' biggest assets are at risk from rising flood danger.

Households could end up 'trapped' in homes they can no longer insure or finance, warned Richard Pinch, who serves as senior director at Broadstone. The Financial Conduct Authority puts the share of mortgages in at-risk postcodes at 15.5%. In Inner London West, 24% of the area faces surface water flooding. East Yorkshire and Northern Lincolnshire are worst hit by river and sea flooding, with 38% exposed.

Essex leads all regions in the proportion of mortgage postcodes falling into the high-risk category, at 6.5%.

Pinch cautioned that premiums could surge, property values decline, and remortgaging or selling become increasingly difficult.

The regulator found no clear link between riskier high-LTV lending and flood exposure.

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