Mortgage refused due to house having spray foam insulation in roof

[CurlyNo2]

We are first time buyers and found our dream house. Our mortgage application was sent to the underwriters who came back and declined our application due to spray foam insulation in the roof. We don’t have any further details only that it is not covered in their policy.

Does anybody have any experience of this?

Thanks

@Shannon300976 Did you keep the spray foam in or did the seller remove it before approaching another lender?

Our seller has removed and now we’re awaiting HSBC to go back out to value the property to see if it’s a yes or no again.

We're still waiting to hear Nationwide final decision before the seller will have to decide whether to remove it or not. Unfortunately our move is time sensitive and if our seller has to remove we cannot wait for them to get this sorted.

The only companies that bothered to send out a valuer and ask for further info was Nationwide, NatWest & Virgin. NatWest refusal came through this week, Nationwide waiting on final document from installer, Virgin looking for structural engineers report which is for seller to arrange

How did they reject it due to the foam if they hadn't done a valuation? Did they do desktop and find out later in the process?

I’m not sure if this is for me or the other poster, but the original valuer for us went out and spotted it which led to the rejection from HSBC.

We have put a case through for HSBC to reevaluate once it was removed and we are just awaiting the outcome of the subsequent valuation visit.

Yes it was to @Shannon300976 sorry, the same happened to us with hsbc. Please update to how it goes, our rate was cheaper with hsbc so would be ideal for us to use that application if we do have to get them to remove it

@JessicaPeach Santander and HSBC....outright no, wouldn't even look at the application when they saw the house advert stated spray foam insulation... Halifax went to arrange a valuer before they realised there was spray foam and as it's in Halifax criteria not to accept spray foam the valuer stated they couldn't value the house as under the lenders criteria the value of the house was £0.00

Update:

HSBC sent a valuer out to revaluate the house again after the spray foam was removed by the seller and the traditional insulation was put in place and they APPROVED it!

That's great news OP, very pleased for you. I hope there's been no damage left behind but I'm guessing you would have been told when the new insulation went in.

Delighted for you@CurlyNo2 brilliant news.All the best of luck with your new home.

Insulation and fire

That's amazing news!! Enjoy your new home

@PigletJohn - we had a company round recently to sell us this. They said it was breathable and open cell, so no risk of damp. Icynene was the make. Do you recommend it? Or what insulation would be better? We need something. Thank you!

Sorry to hijack your thread. Congrats, op!

I wouldn't recommend any roof spray. Why are you attracted to it? Do you want to use your loft as a room? How old is the house ? Is the roof felted?

@PigletJohn another insulation question but about the sort that gets sprayed into gaps in the walls.

We've got a timber frame house built 1989.

One eco option offered to us was to have insulation sprayed into the gap between the outer bricks and the inner wall.

When a surveyor came round to look we were told that our gap was too small to have the insulation sprayed in.

Ultimately I think it was a lucky escape. What is this stuff and why does it only work with a bigger air gap?

Thanks, @PigletJohn!

I hadn't heard of it before this company rang us and said there was a govt grant to insulate our loft w this foam...

We only have a little fibreglass left in the loft and it's not doing much.

The guy measured the damp in our loft and it was 15% to 20%, so I want that to improve - guy said 5% was the max he'd be happy with.

House is 1980s. Some of the roof membrane is coming away and needs to be replaced too.

What insulation would you recommend?

No, we don't use loft as a room. Don't think the roof is felted...

Roxie

Off topic but timber frame houses usually can't have CWI added later.

Government grant my asre.

Then there is no reason to insulate the roof slopes.

Insulate between the joists of the loft "floor"

If you want to board it, there are a few ways to do it with thick insulation, but start a new thread as it is not about spray foam.

Thanks PigletJohn!

Hi, I have found a property with spray foam in the loft and the lender, mortgage works (part of nationwide) asking for

• The full pre-survey suitability report including details of the materials/isolating card
• The condensation risk assessment
• Evidence of BBA certification
• The warranty/guarantee provided of the installation and insulation. This warranty must be transferable upon sale of the property to the new owners.

Or A Building Surveyor or Structural Engineer should be instructed to undertake an invasive inspection and report on the frame integrity. Where remediation works are required an estimated cost must also be included.

The seller did not have the paperwork it anything to give me so I had a level 3 building survey done on the property and submitted this to the lender.

Has anyone else been asked to submit anything, what else would they need or will it now be a flat no.

I am going to get a new roof and get it all removed however need the mortgage first.
The seller won't have it taken out as the estate agent is informing us that they have sold lots of houses with spray foam.

Just seeing if anyone else has been through all of this and what outcome they had?

Thank you

The key problems are (1) There are two types of foam — closed cell and open cell. Open cell is OK; closed is not. (2) There are two types of installers: professional and cowboys (3) There are two types of homeowner who had it installed — those who wanted to improve insulation and those who wanted to cover up problems with the roof.

Mortgage lenders started giving a flat ‘no’ to all properties with foam, in case it was the closed type, installed by cowboys in order to cover up problems with the roof.

After an outcry (the government DID offer grants for the open type of foam), lenders are much more willing to lend now, but, understandably want the paperwork to prove that the right type of foam has been properly installed for the right reasons.

If your survey shows that your vendors are the last type, though foolish enough not to keep guarantees etc it’ll be OK. Probably. But I do wonder why they didn’t keep the paperwork.