The Myth Behind the Mortgage Problem with Spray Foam
What is the Spray Foam Insulation Mortgage Problem?
Many homeowners or would-be-homeowners in the UK are finding they cannot get mortgages on properties with spray foam. This is because RIC's surveyors have decided to classify both open and closed cell spray foam as a danger to internal moisture levels, making the properties un-mortgageable at the current time.
The problem with this classification is that it is fundamentally incorrect, with open cell spray foam being proven effective in domestic properties without the same risks and issues as closed cell. However, homeowners are left in limbo until the classification is changed to show the difference between the two spray foams.
What is the UK Government View on Spray Foam?
As the latest RICs guidance advises against properties with spray foam, the UK Government has come under fire from property specialists all over the country. The reason for this backlash is because the government was offering spray foam grants as part of their Green Homes scheme that only ended a year ago, providing up to two thirds of the cost of spray foam insulation to grant receivers.
This means that if you used this scheme to make your home warmer and more climate-friendly, you will now be left with the decision to stay put or pay for it to be removed so that you can move home. This lack of joined-up thinking has created a crisis for homeowners, leaving many people regretting their decision to have spray foam applied in the first place.
Where Have Spray Foam Roof Insulation Mortgage Problems Come From?
Spray foam insulation has long been marketed as an energy-efficient solution for homes, but in recent years, it has been scrutinised particularly by mortgage lenders and surveyors. The issue's root stems from a history of poor installation practices, especially involving closed-cell spray foam. When improperly applied, this dense insulation can trap moisture within the roof structure, leading to serious problems, including condensation, mould growth, mildew, and even rotting roof timbers.
As a result, RICS (Royal Institution of Chartered Surveyors) surveyors have increasingly flagged homes with spray foam insulation during property surveys, often advising lenders to proceed with caution or deny mortgage approval altogether. Unfortunately, this caution has been extended across the board, impacting open cell spray foam as well even though this type of insulation is more breathable and generally considered safe for domestic roofs when professionally installed.
This blanket approach has caused confusion and concern among homeowners and potential buyers alike. It raises the question: should all spray foam insulation be treated equally, regardless of type and installation quality? The mortgage problems associated with spray foam insulation haven't necessarily come from the material itself, but rather from a legacy of substandard applications and a lack of nuanced understanding in the property and lending sectors.
How is Spray Foam Affecting Equity Release Requests?
There is no doubt that the UK cost of living crisis is taking its toll on homeowners up and down the country, leading many to consider releasing the equity in their home to be able to make ends meet. However, much like mortgage companies, equity release firms are refusing to accept clients who have properties with spray foam installed.
This refusal has come as a shock to many homeowners as most will have never been warned about spray foam issues before and lots of clients seeking equity release won't have ever considered it until the financial crisis hit. The result? People who are unable to access the cash they have in their homes unless they are willing to pay to have it removed first – it's a vicious cycle that is leaving people without the means to live.
How Can I Deal with the Spray Foam Insulation Mortgage Problem Now?
If you don't have time to wait for the spray foam insulation mortgage problem to be resolved, then you may need to consider having your current spray foam removed to be able to sell your property. At Countrywide Roofing and Insulation, we are currently completing a number of spray foam removals for customers in the same position across the South of the country.
It is important to note that you should not attempt to remove spray foam without the input of a specialist, as you can cause significant damage to your property and even put your own health at risk when you decide to do it yourself. While it will cost you money to have spray foam insulation professionally removed, it will cost far less than having to repair damage caused when trying to do it yourself.
I Want to Install Spray Foam – Should I Cancel My Plans?
Having spray foam installed is not recognised as a safe and great solution due to issues you will have in the future, with the current anti-spray foam climate, many homeowners are being put off using it, worried about how it will affect the resale value of their home.
Finally, think about your plans for the future and when you may want to sell up and move on, and you may have to pay more for the spray foam to be removed
Unsure About How to Proceed?
Being a homeowner comes with a huge amount of stress and worry, and when issues such as the spray foam insulation mortgage problem come to light, it can be a very worrying time, leaving you unable to decide what to do.
If you are unsure about the right next step, contact Countrywide Roofing and Insulation for the advice and support you need. Call us on 0808 134 2352 or fill out the form below
Please also read the RICS release new spray foam consumer guide
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