We’re noticing an increase in the volume of properties that are being rejected by mortgage lenders due to Spray Foam Loft Insulation.
Spray Foam Insulation is being heavily marketed, particularly now that we’re facing higher energy bills than ever before, global warming, COP 27 etc.
Many homeowners are engaging companies to provide this insulation. It’s applied using powered sprayers that coat the roof with expanding foam, this turns into a solid coating that insulates roofs, lofts, walls, and floors.
The problem comes when it is used in roofs and lofts. Here it has a tendency over time to trap moisture around wooden joints, which can lead to rotting. The hardened foam can also warp wooden beams.
The result of this is that many lenders will not consider the property as suitable security for a mortgage, this includes residential, buy to let and equity release mortgages.
It can cost several thousands to have the foam installed, and unfortunately a similar amount to have it removed.
We are also finding that insulation firms are targeting older homeowners. Whilst they may not have a mortgage, if they move into sheltered accommodation or a care facility, their home is often sold to pay the fees. At this point it’s identified that the property’s value has been severely affected by the insulation and may now only appeal to cash buyers. It’s also worth knowing that if older homeowners want to release equity from their property, there are currently zero Equity Release lenders who will lend where Spray Foam is in situ.
So, if you have any friends or family who are considering this type of insulation, please show them this article and encourage them to do their homework, use any search engine and search “Spray insulation and mortgages”.
Our Mortgage Advisers are available to discuss this or any mortgage matter, please contact us.
Mortgage and Protection Director