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

what about wall insulation? would that be ok?

It is their parents house who have passed away so I think they don't have much paper work or were not interested in keeping much. I'm not too sure.
But it's a waiting game now to see what the mortgage company say after the report :)

Had major issues trying to get a mortgage for our new house last Sept.... eventually got a mortgage from Nationwide, the only company willing to give us the mortgage because of this insulation....we tried 7 different companies.

We haven't had the insulation removed as it's brilliant....house is toasty warm and the insulation was put in properly.

But had to jump through hoops to give mortgage company everything they asked for and more.

Good luck.

hi, I found your thread and thought it was very helpful. I am wondering how things turned out... I hope all was successful?

Kirsten2990 Sounds like we are now in the same boat as you. Found a property we really like with spray foam (Closed type), I have managed to find a lender who apparently will lend on a property with it in (Atom Bank) so long as the foam is only in between and hasn't covered the main structure of the roof which I am led to believe ours falls into that category. I am planning to reroof the whole thing immediately, just need to get the mortgage to purchase the property.

Wondering how you got on, did you manage to get the mortgage and did it all go through? Were there any more hoops you had to jump through?

Does anyone have any further advice on this, any experiences with lenders lending?

Hi, we just encountered this problem @Villagelife2018 and we are with Atom bank. They flat refused after the survey. Didn't matter the type. Now we have to see if the vendor will get it removed but we thought it might need a roof cos it had cracked the lintel of the front of the house windows 😑 IE meaning movement. So I'm worried that they remove the foam and it's another thing to fix before approval. But this is the second time we are trying to buy a house since this February and both tomes it was atom bank and even a change of house address even though the house was chaos than the last and will like half of the DIP we had to do a new credit check to get approved.

I think so far the only way is it it's removed. The guys who had mentioned they got it approved with foam didn't mention what lender. But ruled had changed since Jan. Atom bank also used a different company for the mortgage to approve it before it's them. Atom os really fast though but our Mortgage interest rate on the first one was 5.47 while the second one which was 7k cheaper was 5.37 so I have no idea how they are managing the prices but both times was under 100k

@Kirsten2990 did you get your mortgage approved with Foam with mortgage works?

What did u end up doing level 3? And did they still havS their own come and so it as well?

Thanks

You could get short term finance to buy it at a good discount, do the works, remortgage it at the higher value. Worth a conversation

@CreativeMOI How is yours sprayed on the property, does it cover everything or can you see the structure? Your right type doesn't matter, however I've been told that Atom banks policy is "so long as the support structure is visible" they will lend. Ours is a deceased property, and they have left it to around 5 charities so getting them to agree even the price of the property is a nightmare, so very unlikely they will agree to getting the works done at their own expense, if they do will take a long time. This is so frustrating as we are prepared to re roof the hole thing, just I won't do it while the property isn't mine.

Hi, my lender was with the mortgage works. The seller had to get the spray foam removed in order for us to proceed. They had a new roof put onto the house and the lenders didn't have an issue once this was done. They weren't going to lend until this was done. I was concerned that the timber would be damaged and cause more costs but everything was fine.
The level 3 was done but they picked at it saying according to what they could tell the spray frame was used to cover up getting a new roof which I don't think was the case but they will find anything not to lend you.
The seller put the price up a little but to cover half the roofing which I was ok with as I was going to put a new roof on anyways so I saved a bit there and got the house for a decent price.
Those spray foam companies should be banned!

We got our mortgage after a lot of persistence with Nationwide Building Society

The vendor didn't need to remove the spray foam...we are in our home 2 years this year and no issues with the spray foam

Things have changed on this in the last two years though....

My bil had this. He paid around 12k to get it removed and remedied. Only way to get a sale as no one would lend with it in place. I often still get online adverts for spray foam insulation with gov help suggested. They should be banned. I hope more and more people are now aware of this scam.

But actually AWAY from a blanket ‘no’. As long as vendors have the right paperwork and it’s open cell, more lenders are willing to lend. There was a big consultation with RICS and new guidance agreed.

We had to jump through hoops to get our mortgage and that was in Nov 22 so not quite 2 yrs ago and I know things haven't changed much in the way of this issue. I was only trying to advise a person on who we eventually got our mortgage through. Please don't assume I haven't kept up with news on this issue since as it would still possibly have implications if we ever wanted to sell or remortgage on our home.