Insulating Your Investment: Sprayfoam & Mortgages Explained

This blog explores the challenges spray foam insulation can pose for home sales and mortgages, shedding light on industry standards and lender concerns.

Introduction:

If you’ve come across this article, you might be exploring answers to important questions like:

  • Is spray foam insulation right for my home?
  • Does spray foam cause structural damage, such as rot?
  • Can I sell a home with spray foam insulation installed?
  • Will spray foam affect my ability to secure a mortgage?

This guide is designed to provide a balanced perspective on the complexities surrounding spray foam insulation in homes. We’ll address concerns about its impact on mortgage approvals, the challenges faced by homeowners during property sales, and why some lenders temporarily restricted mortgages for properties with spray foam insulation until industry standards were established. Our goal is to offer clarity and practical advice for navigating this topic.

Blog Summary:

Recently, the spray foam insulation industry has faced heightened scrutiny due to issues with some properties being denied mortgages. Concerns about the use of spray foam insulation, particularly in the pitched roof areas of homes, came to light in November 2021 following a joint report by the Property Care Association (PCA) and Residential Property Surveyors Association (RPSA). This report raised critical questions about the product, its installation process, the science behind it, installer qualifications, sales practices, and the adequacy of documentation provided to homeowners after installation.

While the report highlighted significant challenges within the spray foam industry, it also presented an opportunity for industry stakeholders to collaborate with the PCA, RPSA, mortgage lenders, building surveyors, and other experts. Together, they worked to address these issues and establish standards aimed at restoring confidence.

In late 2022, a Working Group was formed to create a standardized inspection protocol. This protocol is designed to help surveyors and mortgage lenders assess whether a property with spray foam insulation represents a low, medium, or high risk.

One of the primary concerns with spray foam is that it is typically applied to the underside of the roof membrane, making it difficult for surveyors to inspect the roof’s condition. While this limitation is valid, it’s important to note that certain roof types, such as those in dormer bungalows, often pose similar challenges. Furthermore, many existing homes feature high-resistance, non-breathable bitumen felt membranes, which can trap internal moisture.

These issues underscore why there is ongoing confusion about what constitutes a well-executed spray foam installation versus a problematic one. This article explores these complexities and provides guidance to help homeowners and professionals navigate this evolving landscape.

Understanding Sprayfoam Insulation:

Spray foam insulation comes in two main types: high-density closed-cell foam and low-density open-cell foam. Each has distinct properties and applications, making them suitable for specific insulation needs.

Closed-Cell Foam
Closed-cell spray foam, introduced in the UK during the 1980s, was initially designed for industrial use but later made its way into residential properties. Its high density and ability to bond and reinforce failing roofs made it an attractive option, especially where roof membranes were damaged or nonexistent. While effective at extending the lifespan of roofs, closed-cell foam has a notable drawback—if moisture becomes trapped, it can accelerate structural decay. This risk was a key point raised by the Property Care Association (PCA) and the Residential Property Surveyors Association (RPSA) in their assessments of spray foam insulation.

Despite these risks, closed-cell foam’s ability to strengthen aging roofs often led homeowners to view it as a cost-effective alternative to roof replacement. For years, its use as a direct-to-tile roof stabilization system was widely endorsed. However, this practice is no longer certified or recognized as a viable solution. When a roof reaches the end of its natural lifespan, full replacement is now considered the only sustainable option.

Open-Cell Foam
Open-cell spray foam is a lightweight, breathable insulation material that gained traction in the UK from 2012 onward. Sprayed directly onto the underside of roofing felts, it creates an airtight but breathable thermal seal. This seal enhances energy efficiency and provides excellent soundproofing while freeing up valuable loft space for storage. Open-cell foam is durable, often guaranteed for up to 25 years, and designed to perform for the life of the property without degrading.

As sustainability and energy efficiency became priorities for homeowners, open-cell spray foam rose in popularity during the 2010s. The UK Government’s Green Homes Grant of 2020–2021 further accelerated its adoption, recognizing spray foam insulation as an approved measure for thermal upgrades. This initiative required installers to obtain PAS 2030 certification, ensuring higher standards, stricter documentation via the TrustMark database, and increased oversight from certification bodies.

While spray foam insulation has significant advantages, understanding its applications, risks, and proper installation methods is essential for homeowners to make informed decisions.

The Evolving Landscape of Spray Foam Insulation and Mortgage Lending

Until early 2023, many mortgage lenders had halted approvals for properties with spray foam insulation. However, thanks to the collaborative efforts of the Working Group and the development of the Inspection Protocol documents, several lenders now recognise spray foam as a viable insulation material. This acceptance is contingent on proof that it was installed in compliance with approved product certifications, such as BBA or KIWA certification. While progress has been made to address misconceptions surrounding spray foam, challenges remain with non-compliant or poorly executed installations that require remediation or, in some cases, removal.

Installation Risks and Recommendations
Closed-cell spray foam applied directly to roof tiles is no longer an approved insulation method due to the heightened risks associated with this application. In contrast, open-cell foam, when installed onto a low-resistance roof membrane, poses a minimal risk provided the roof is in good condition prior to installation and supporting documentation is available to demonstrate compliance.

For high-resistance bitumen felt membranes, spray foam insulation can still be an option, but additional steps are needed. These include inserting a ventilation card between the rafters to promote airflow above the insulation or installing a vapour control layer on the warm side of the insulation. BBA and KIWA certification guidelines recommend conducting a condensation risk analysis before installation, and manufacturers and distributors increasingly support installers with this crucial documentation. Additionally, in the southern regions of the UK, closed-cell spray foam installed on high-resistance membranes can also be deemed low-risk under specific conditions.

Industry Collaboration and Progress
The Joint Position on Spray Foam Insulation, released by the RPSA and PCA in November 2021, was formally withdrawn in October 2022. This retraction allowed for more collaborative and constructive discussions among stakeholders, including surveyors, lenders, and industry representatives. This milestone initiative, supported by government guidance, marked a significant step towards a more compliant and transparent future for spray foam insulation.

When correctly installed in line with BBA or KIWA certifications, spray foam should provide homeowners, lenders, and surveyors with confidence in its viability as an insulation solution. However, manufacturers and distributors must ensure their products are handled by adequately trained installers who adhere to principles that meet modern regulations. By aligning installation practices with scientific evidence and robust documentation, the spray foam mortgage issue could soon become a thing of the past.

Guidance for Homeowners with Existing Spray Foam Insulation
For homeowners with existing spray foam insulation, particularly those among the estimated 250,000 properties where compliance documentation may be lacking, the situation can be challenging. Without proof of proper installation aligned with BBA or KIWA certification, some homeowners may need to invest in remedial measures or removal to qualify for a mortgage.

If you find yourself in this position, the first step is to contact the original installer to request condensation risk calculations, pre-installation survey information, and any guarantees or warranties provided at the time of installation.

While negative press around spray foam can be concerning, homeowners should not panic, particularly if selling the property is not imminent. Even in cases where installations fall short of current standards, significant damage is unlikely to occur in the short term. As a responsible homeowner, following the steps outlined here will help ensure your property remains compliant and minimise future challenges.ther

Positive Shifts in Mortgage Lending for Homes with Spray Foam Insulation

The mortgage market is beginning to show promising changes regarding properties with spray foam insulation. Several major lenders are now considering mortgage applications for these homes, provided the installation complies with industry standards and is supported by the necessary documentation. High-street lenders, including Nationwide Building Society, Santander, Halifax, NatWest, and Barclays, are actively reviewing or approving mortgages on homes with spray foam insulation. Additionally, a number of smaller, bespoke lenders are adopting a more flexible approach.

One increasingly common requirement is the provision of an Insurance-Backed Guarantee to cover the installation. At Easy Sprayaway, we have partnered with a trusted insurance provider to support installations carried out using our products by our network of approved installers.

Although negative press about spray foam insulation persists, particularly concerning challenges with selling properties, the landscape is rapidly evolving. Homeowners are being empowered with more choices to insulate their homes responsibly. For those who may have encountered discouraging articles, we recommend consulting multiple mortgage lenders to determine their stance on spray foam insulation before deciding on an installation. If several lenders express a willingness to lend, it can serve as a positive indication that perceptions within the mortgage market are improving.

Easy Sprayaway is committed to supporting our approved installers and their customers throughout the process to ensure peace of mind at every step.

Considerations for Equity Release Lenders
While the situation is improving among traditional mortgage lenders, equity release providers remain far more cautious. These lenders base their products on the assumption that a property will appreciate in value over time, leading to strict lending criteria. As a result, many equity release lenders currently do not offer products for homes with spray foam insulation. Additionally, some may object to other types of home improvements that they believe could affect property valuations.

It is also important to acknowledge that not all mortgage lenders accept spray foam insulation. However, as major high-street lenders increasingly recognise its viability and as industry standards continue to improve, we expect lending guidelines to relax further in the future.

Homeowners exploring spray foam insulation can feel optimistic about the positive changes in the lending landscape. As this industry evolves, Easy Sprayaway remains dedicated to ensuring all installations meet the highest standards, providing both lenders and homeowners with confidence in this insulation solution.

Easy-Sprayaway Insulation: Ensuring Quality and Protecting Homeowners

Easy-Sprayaway insulation offers significant benefits for Scottish homes, including improved energy efficiency and reduced heat loss. However, with the rise in popularity of this technology, it’s crucial to choose a reputable supplier and installer to ensure a high-quality and compliant installation.

As one of the leading spray foam manufacturers/distributors in the UK, we prioritise quality and homeowner protection. Our foam are certified by the BBA or KIWA, demonstrating their suitability for various applications, including retrofitting pitched roofs.

Our Commitment to Quality:

  • Rigorous Installer Training and Approval: Our installer network undergoes extensive training and is rigorously assessed to meet our high standards. All approved installers hold valid insurances and are listed on our website for your convenience.
  • BBA Approved Installer Status: We mandate that all our approved installers achieve BBA approved installer status, ensuring independent oversight and adherence to industry best practices.
  • Comprehensive Installation Monitoring: We conduct regular surveillance visits to completed installations and utilize remote assessment tools to ensure compliance with our strict guidelines.
  • Homeowner Protection: Our internal processes go beyond industry standards, safeguarding homeowners with measures such as:
    • Pre-installation Assessments: Thorough assessments ensure the suitability of spray foam for each specific application.
    • Best Practice Adherence: Approved installers must follow our best practice guide to ensure compliant installations and proper documentation.
    • Quality Control: We assess every installation remotely using pre-installation surveys, photographs, and videos.
    • Product Warranty: Product batch numbers are recorded and linked to the product warranty.
    • Hygrothermal Monitoring: Monitoring devices are installed to measure key parameters and ensure optimal performance.
    • Ventilation: High-resistance, non-breathable roofing membranes are adequately ventilated to maintain a 50mm air gap above the insulation.
    • Transparency: A QR code label provides homeowners and surveyors with access to critical installation documentation.

Addressing Pricing Concerns:

Some concerns have been raised regarding pricing within the spray foam industry. To address this, we recommend that homeowners:

  • Obtain Multiple Quotes: Get at least three quotes from approved installers to compare prices and identify any potential overcharging.
  • Be Wary of Aggressive Sales Tactics: Avoid companies that employ high-pressure sales techniques or excessively inflate prices.

While some jobs may require higher pricing due to complexity or low-meterage installations, excessive pricing is unacceptable. We will take action against any approved installer or sales company that engages in unethical pricing practices.

By choosing a reputable supplier and installer, homeowners can ensure a high-quality, compliant, and cost-effective spray foam insulation installation that enhances the energy efficiency and comfort of their homes.

Spray Foam Insulation: When to Install?

Spray foam insulation has gained significant traction in recent years as an effective way to improve a home’s energy efficiency. However, concerns raised in past reports have led to some confusion and anxiety among homeowners. This blog aims to provide clarity and address common questions.

Should I Install Spray Foam?

In most cases, spray foam insulation can significantly enhance a home’s thermal performance, leading to increased comfort and reduced energy bills.

  • Key Considerations:
    • Choose a reputable installer: Select a company with positive online reviews, who conducts thorough pre-installation surveys and provides clear documentation.
    • Address concerns: While past reports raised concerns, the industry has taken steps to address these issues, and current regulations and best practices ensure safe and effective installations.
    • Mortgage considerations: Contact potential mortgage lenders to inquire about their policies regarding homes with spray foam insulation. Many lenders now readily offer mortgages on such properties.
    • Avoid performance reduction: Ensure the chosen solution enhances overall thermal performance. For example, avoid removing existing insulation without careful consideration of the combined impact.

Spray Foam Insulation: Addressing Concerns and Promoting Informed Decisions

Recent negative press surrounding spray foam insulation can create apprehension among homeowners. However, it’s crucial to understand that these concerns do not necessarily reflect the inherent quality or suitability of this insulation method.

Building Regulations and Industry Standards:

  • Modern building regulations emphasise: Airtightness and improved thermal performance in buildings. Spray foam insulation can significantly contribute to these goals.
  • Industry certifications: The BBA and KIWA rigorously certify building materials, including spray foam. Compliance with these certifications ensures product quality and suitability for specific applications.
  • Importance of proper installation: While certification guarantees product quality, the quality of installation is paramount. Our internal processes, including a strict Code of Conduct and regular compliance checks, help ensure that our approved installers adhere to the highest standards.

Spray Foam vs. Other Insulation Options:

  • Spray foam offers unique advantages:
    • Airtightness: Minimises air leakage, reducing heat loss and improving energy efficiency.
    • Durability: Resistant to shrinkage and degradation, unlike some other insulation materials.
    • Protection: Provides enhanced protection against solar gain and heat loss.
  • Considerations:
    • Thermal performance: While highly effective, the thermal performance of spray foam can vary depending on the type and thickness.
    • Cost: Spray foam is generally considered a premium insulation option compared to traditional materials like mineral wool.
    • Suitability: The suitability of spray foam for a specific property should be determined through a thorough assessment, considering factors like existing insulation, building structure, and climate.

Making Informed Decisions:

  • Conduct thorough research: Explore different insulation options and their respective benefits and drawbacks.
  • Choose certified products: Opt for products certified by reputable organisations like the BBA or KIWA.
  • Obtain multiple quotes: Compare quotes from different installers to ensure competitive pricing and identify the best fit for your needs.
  • Request a handover pack: Ensure you receive all relevant documentation from the installer, including warranties and installation records.
  • Seek expert advice: If you have any doubts or concerns, consult with a reputable spray foam distributor or manufacturer.

Addressing Concerns About Mortgage Issues:

While some lenders may have had reservations in the past, many are now more receptive to properties with professionally installed spray foam insulation.

  • Key factors:
    • Proper installation: Adherence to best practices and relevant standards is crucial.
    • Comprehensive documentation: Maintaining accurate records of the installation is essential.

Conclusion:

Spray foam insulation can be a valuable investment for homeowners seeking to improve energy efficiency and enhance the comfort of their homes. By making informed decisions, choosing reputable installers, and ensuring proper installation and documentation, homeowners can minimise potential concerns and reap the benefits of this effective insulation technology.

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