Spray foam or SPF insulation is a helpful way to reduce energy costs by providing superior insulation.
But, in the UK, some spray foam mortgage problems are on the rise.
Lenders believe they have no option but to look at properties with SPF insulation as risky, which causes difficulties in getting mortgages or remortgaging.
Concerns about Airflow and Moisture
Closed-cell SPF forms an airtight barrier that traps moisture.
When air circulation is restricted, condensation can accumulate on roof timbers. This increases the chances of dampness.
Over time, this moisture can also rot the wood and cause structural damage. It threatens the integrity of the property.
This is what lenders want to steer clear of when they assess long-term property value and risk. This likelihood of future damage makes them cautious about approving mortgages for such homes.
Challenges in Inspection and Removal
SPF’s strong bonding to surfaces makes it very difficult and costly to uninstall or remove.
The expense of removing the insulation can go higher than the cost of its installation, which becomes a problem for homeowners and buyers.
During the mortgage valuation process, surveyors are unable to inspect these properties. The insulation can come in the way of direct access to the roof timbers and other important areas.
It gets very difficult for surveyors to do a good job of evaluating the property’s condition. Because they can’t see the true state of such a property, lenders decline mortgage applications.
Impact on Mortgage Valuations
Most UK lenders even have policies that automatically decline mortgage applications for properties where SPF’s present.
Lenders fear that SPF insulation could shoot down a property’s value or call for expensive inspections by specialists.
Homeowners struggle to sell or remortgage their homes because of this, and they find themselves in a tricky position.
Important Steps for Homeowners
If your home has SPF insulation, you can do something to question the impact on mortgage applications and future resale or refinancing.
Documentation
Keep thorough documentation of the installation of the insulation. This includes keeping records of:
- SPF guarantees
- independent validation certificates from reputable organizations such as KIWA and the British Board of Agrément (BBA)
- pre-installation surveys
These documents should prove to be valuable evidence that the insulation was installed correctly.
Be Aware
Homeowners should be extremely cautious of companies that are offering to remove SPF insulation.
Be even more concerned if they contact you unasked.
Some companies falsely claim that installations don’t meet standards and then charge major fees for removal. Many of these companies may even lack proper credentials, and their services could do more harm than good.
Instead of rushing into removal, people should first get in touch with the original installer of the SPF.
Handling Complaints and Disputes
For those who got their insulation through the Green Homes Grant, there is a formal process for dispute resolution.
In cases where homeowners believe they have been misled, they may seek recourse under the Consumer Protection from Unfair Trading Regulations 2008.
Getting professional advice from a lawyer or a trusted expert can also be very helpful. Citizens Advice also provides support for disputes with traders and gives guidance on how to proceed.
Final Thoughts
SPF insulation can be a helpful method for reducing energy costs, but it comes with its own set of challenges, particularly in the context of the UK mortgage market. Homeowners need to be aware of these issues and take proactive steps to address them. Only get SPF insulation from reliable installers.
Isothane, a prominent UK company, specializes in polyurethane foam products. They provide a variety of insulation, waterproofing, and rigid foam solutions custom to different industries, supported by their advanced PU technology and a broad network of reliable installers across the country.
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