Spray foam insulation has become increasingly popular among UK homeowners as a means of improving energy efficiency. By creating a tightly sealed barrier in lofts and roofs, it helps to reduce energy bills, making it an attractive option for many. However, what many don’t realise is that spray foam insulation can cause significant challenges when it comes to securing a mortgage or selling a property.
This blog post will explore the issues surrounding spray foam insulation and mortgages in the UK, providing expert insight from Kristian Derrick, CEO of Mortgageable.co.uk, on what homeowners need to know about this growing problem.
What is Spray Foam Insulation?
Spray foam insulation, also known as polyurethane foam, is applied as a liquid that expands to form a thick insulating layer. It is often used in lofts to create an airtight seal and prevent heat loss, and it can offer impressive thermal benefits compared to traditional insulation methods. However, its application can lead to concerns about ventilation, moisture control, and long-term structural integrity.
Why Lenders Are Cautious About Spray Foam Insulation
One of the primary issues with spray foam insulation is how it interacts with the roof structure. When applied directly to the underside of the roof, it can reduce ventilation and trap moisture. Over time, this can cause timber in the roof to decay, leading to costly repairs and, in some cases, structural damage.
Lenders are wary of spray foam insulation because of the difficulties in assessing the condition of the roof. If a surveyor cannot see the timber due to the foam, they cannot verify whether the roof is in good condition. This can result in lenders refusing to approve a mortgage application or requiring costly additional inspections.
Kristian Derrick, CEO of Mortgageable.co.uk, explains:
“Spray foam insulation is a double-edged sword. While it offers excellent thermal efficiency, it can cause major headaches when it comes to securing a mortgage. Many lenders are reluctant to lend on properties with spray foam insulation unless thorough surveys are carried out, and even then, some outright refuse. Homeowners need to be aware of these challenges before deciding to install it.”
The Impact on Sellers
If you’re trying to sell a property with spray foam insulation, you may face difficulties attracting buyers. Some buyers’ mortgage applications may be declined because lenders are unwilling to approve loans for properties with spray foam. Even cash buyers might be deterred by the potential risks and future challenges.
To mitigate this, sellers should ensure they have documentation proving that the spray foam insulation was installed by a reputable company in compliance with relevant standards. Independent inspections or surveys can also help reassure potential buyers and lenders about the condition of the roof.
The Impact on Buyers
For buyers, discovering spray foam insulation during a survey can complicate the purchase process. If the lender requests further inspections to assess the condition of the roof, this can delay the transaction and add unexpected costs. In some cases, lenders may refuse to approve the mortgage altogether.
Kristian Derrick adds:
“For buyers, the presence of spray foam insulation can turn what seems like a straightforward purchase into a drawn-out process. If you’re considering buying a property with spray foam, it’s important to flag this with your mortgage broker early so they can identify lenders who are more flexible.”
What Can Homeowners Do?
If you already have spray foam insulation in your home and are looking to sell or remortgage, there are steps you can take to minimise the impact:
- Obtain Professional Documentation: Ensure you have paperwork showing that the insulation was installed by a reputable company and meets all relevant standards.
- Arrange an Independent Roof Survey: A professional roof inspection can help reassure buyers and lenders that the roof structure is sound.
- Consider Removal: In extreme cases, you may need to remove the spray foam insulation to satisfy lenders or buyers. This can be costly but may be necessary to facilitate the sale or remortgage of the property.
- Consult a Specialist Mortgage Broker: A knowledgeable mortgage broker can help identify lenders willing to work with properties that have spray foam insulation and guide you through the process.
What Are the Alternatives?
If you’re considering insulation options, it’s worth exploring alternatives to spray foam. Traditional materials such as fibreglass or mineral wool provide effective insulation without the potential issues associated with spray foam. Additionally, these options are less likely to raise concerns with lenders and surveyors.
Looking Ahead
As awareness of the challenges posed by spray foam insulation grows, it’s likely that industry standards and practices will evolve to address these concerns. In the meantime, it’s crucial for homeowners, buyers, and sellers to understand the potential impact of spray foam insulation on mortgages and property transactions.
Kristian Derrick summarises:
“Spray foam insulation can be a valuable asset, but it’s vital to weigh the pros and cons carefully. By taking the right precautions and seeking expert advice, homeowners can navigate these challenges and make informed decisions.”
For more advice on navigating mortgage challenges or finding lenders who can work with unique property features, visit Mortgageable.co.uk.
Conclusion
Spray foam insulation can provide excellent energy efficiency benefits, but it’s not without its challenges, particularly when it comes to mortgages. Whether you’re buying, selling, or remortgaging, it’s essential to understand the potential implications and take steps to address them. By working with a knowledgeable broker and ensuring proper documentation, you can minimise these issues and move forward with confidence.
