A quarter of the UK’s largest mortgage lenders will not provide home loans against property with spray foam insulation, analysis shows.
Spray foam insulation has been marketed as an energy-efficient and a cost-effective way to seal roof spaces, walls, and floors. However, this can lead to unintended consequences. By trapping moisture, it can cause the wood in the roof to rot over time, compromising the roof’s structural integrity
In addition to the structural risks, there is also the issue of fire safety.
This has made lenders nervous.
The BBC contacted the 20 largest lenders in the UK and five of them, TSB Bank, Skipton Building Society, Co-operative Bank, Principality and equity release lender Aviva – said they did not lend against properties where spray foam is found in the roof space.
The Yorkshire Building Society and Metro Bank said they would not usually lend where there is a significant amount of spray foam, the research found.
Equity release provider More 2 Life also told the BBC that it will only lend on properties with spray foam where it was fitted as part of an authorised new build and has the necessary documentation.
Other lenders such as Lloyds, Nationwide, Barclays, the NatWest Group and Santander said they consider applications on a case-by-case basis and will take a valuer’s report into account.
It comes amid warnings from property lawyers that homes with spray foam insulation are becoming harder to sell.
Source – Estate Agent today