Spray foam insulation has become increasingly popular in recent years due to its energy-saving benefits. However, if you’re thinking about applying for a mortgage or selling a property with spray foam insulation in the roof, it’s important to understand how this can affect the process. Lenders can be cautious about properties with spray foam, and in some cases, it might even prevent you from securing a mortgage.
Here’s a guide to what you need to know about spray foam insulation and its impact on mortgages:
What Is Spray Foam Insulation?
Spray foam insulation is a material that is sprayed into the roof space where it expands and hardens, creating an airtight seal. It’s known for its ability to prevent heat loss, reduce energy bills, and block out draughts. There are two main types:
- Open-cell foam: Soft and flexible, providing good insulation but allowing moisture to pass through.
- Closed-cell foam: Denser and rigid, offering better insulation but more prone to trapping moisture.
While spray foam has these benefits, it can also cause issues, particularly in relation to property value and mortgage approval.
Why Lenders Are Cautious About Spray Foam Insulation
Many mortgage lenders are hesitant to approve mortgages on properties with spray foam insulation, and there are several reasons for this:
- Structural Risks Spray foam insulation, particularly closed-cell foam, can lead to trapped moisture. This can cause timber roof structures to rot, weaken, or degrade over time. Because spray foam often covers the rafters and joists, it may prevent a full inspection of the roof’s condition, making it difficult to assess whether there are any underlying structural problems.
- Difficulty in Property Valuations For a mortgage lender, the value of the property is crucial. If the property has spray foam in the roof, valuers may reduce the property’s market value or, in some cases, decline to offer a valuation altogether. This is because of the perceived risk of structural damage and the potential difficulty in selling the property later on.
- Issues with Future Buyers If you’re selling a property that has spray foam insulation, you might find it harder to attract buyers, especially those needing a mortgage. Potential buyers could face issues obtaining a loan, and cash buyers may be less willing to invest in a property that could require future repairs or maintenance.
How Spray Foam Can Affect Your Mortgage Application
If you’re purchasing a property or remortgaging a home with spray foam insulation, you should be aware of the following potential challenges:
- Lender Restrictions: Some lenders will outright refuse to offer mortgages on properties with spray foam in the roof. This could significantly reduce your pool of mortgage options.
- Roof Inspection Required: Many lenders will ask for a full roof inspection before approving a mortgage. If the spray foam covers key structural elements of the roof, the surveyor may not be able to assess the roof’s condition properly, leading to delays or even a rejected mortgage application.
- Specialist Reports: In some cases, lenders may require a specialist report from a surveyor who is experienced in dealing with properties that have spray foam insulation. This report could assess any risks and determine whether the insulation is causing any damage.
- Possible Removal Costs: If spray foam insulation is found to be problematic, lenders may insist that it’s removed before approving the mortgage. This can be a costly and time-consuming process, as spray foam is difficult to remove without causing damage to the roof.
What You Can Do If You Have Spray Foam Insulation
If you already have spray foam insulation in your roof and are concerned about its impact on your mortgage or potential sale, there are steps you can take:
- Obtain a Specialist Survey: A qualified surveyor can assess the condition of your roof and the insulation to provide a detailed report. If the spray foam has been installed correctly and there are no signs of damage, this report may reassure the lender.
- Check Installation Records: If you had the spray foam professionally installed, check whether you have records of the installation, including warranties. Having this documentation can help demonstrate to the lender that the insulation was done to a high standard.
- Consider Removal: If the spray foam is likely to cause issues with your mortgage or future sale, you may need to consider having it professionally removed. While this can be expensive, it could make it easier to secure a mortgage or sell the property in the future.
While spray foam insulation offers many benefits in terms of energy efficiency, it can present significant challenges when it comes to mortgage applications. Lenders’ concerns over potential structural risks and difficulties with property valuations mean it’s essential to be well-prepared if you’re dealing with spray foam insulation in the roof. If in doubt, seek professional advice from a surveyor and consult a mortgage broker to help navigate the process.
If you have any questions or need assistance securing a mortgage, get in touch with Quick Mortgages for expert advice.
Disclaimer:
This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.
While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
