Mortgage Lenders and Spray Foam Insulation

Sgt_P_Lodd

A friend's in the process of buying a house, and they've just found out that there's Spray Foam insulation in the roof space.

I'm wondering if anyone has recent experience of getting a mortgage with Spray Foam insulation. At this stage, I don't know if it's open cell or closed cell, and I don't what paperwork exists. I gather it was installed 10 years ago, and has 20 years left of a 30 year guarantee.

The buyer says that NatWest have valued the property and made a mortgage offer - but at the moment, doesn't know if it was a desktop / drive-by valuation (do lenders still do those?) or whether the valuer looked in the roof space.

I saw a an earlier post on this site that said NatWest happen to be the only mainstream lender that accept spray form insulation - is that accurate? Obviously, that will make future resale difficult.

Does anyone have any general comments or advice about the ease or difficulty of getting a mortgage with spray foam insulation?

MWT

If the foam is on the underside of the roof then it is not just the difficulty of getting a mortgage, it is the risk that the foam is hiding significant and potentially increasing damage to the roof timbers... (which is of course why it is difficult to get a mortgage...

If there are photos and details of the remediation to the roof structure carried out before the foam was installed then it would be a great help, if there is nothing then I would walk away.

JMA74

I've had natwest decline cases with spray foam insulation. It's just a case of what the valuer sees on the day

Had another case where vendor paid £8k to have it removed but that was lucky that the roof was still in good condition.  Just no telling unfortunately as its hidden under the foam

Sgt_P_Lodd

JMA74 said:

I've had natwest decline cases with spray foam insulation. It's just a case of what the valuer sees on the day

Yep - it seems you're right.

The buyers had their mortgage offer, but then they specifically asked their broker to ask NatWest about the spray foam issue.

They got an immediate answer from NatWest of "Mortgage Offer Withdrawn".

I chatted with a RICS surveyor about this, and he said he was very surprised that the bank's valuer didn't at least do a 'head and shoulders' inspection of the loft.


The buyer is an FTB and had no idea about the implications of spray foam. Their own survey picked it up, but then the estate agent initially convinced them it was not a problem because it has a 30 year guarantee.

MWT

Sgt_P_Lodd said:

...but then the estate agent initially convinced them it was not a problem because it has a 30 year guarantee.

The foam is guaranteed... the roof... not so much...