The discount supermarket chain will introduce a digital micro-donation system onto its tills, which will allow customers to donate up to 30p per transaction at the card reader to the NSPCC children’s charity
Thousands of Brits are being refused mortgages after installing a popular energy efficiency measure into their homes.
Currently in the UK, it is estimated that around 300,000 homes have installed spray foam roof insulation as a way to make their home more energy efficient and cut the cost of energy bills. However, warnings have been issued as the spray foam could affect the ability to sell your home as a larger number of lenders are not granting mortgages for homes with the foam.
The insulation has been promoted as a good way to improve your home’s insulation, and it used to be supported by the former Tory government’s Green Home Grant scheme, which closed in 2021. Through the scheme, individual homeowners could apply for funding worth up to £5,000 to cover two-thirds of the cost of installing energy-efficiency measures.
The money could be used to help cover some of the costs of home improvement projects, including installing heat pumps, energy-efficient windows and doors, and spray foam insulation. Spray foam is a chemical product that expands up to 60 times its liquid volume. It is then sprayed onto the inside of the roof, where it sets to form a hard layer of insulation.
However, according to the HomeOwners Alliance, it requires professional installation, and if it’s done wrong, it could potentially cause structural damage to your home. Alongside this, it can cause condensation to become out of balance in the winter, which can make untreated timbers vulnerable to decay
Due to this, lenders are increasingly unwilling to lend on properties with spray foam insulation, making it hard for homeowners to sell as buyers struggle to get a mortgage. Also, equity release firms will not lend on properties with spray foam insulation that was installed after the property was built
In a December parliamentary debate, MP Tom Gordon revealed that between September 2020 and March 2021, around 50,000 vouchers were paid to homeowners through the Green Home Grant scheme, although the exact number spent on spray foam is unknown. It is known, however, that almost 14,000 were used for loft and pitched roof installation, which could have included spray foam.
The issue with spray foam is that it is difficult – plus incredibly expensive – to remove once applied. This means homes that have it can face monumental bills if they need to get it gone in order to sell the property.
Of the UK’s five largest lenders, Santander and Virgin Money said they would lend to homes with spray foam on a case-by-case basis. Both noted that a surveyor may need further information, such as a Structural Engineer’s/valuer’s report, to fully assess the property during the mortgage application process.
Virgin Money said the sustainability of the material used and its installation were also used in their evaluation. According to data from Compare My Move, a valuer’s report would cost around £312, based on the average UK house price of £285,000.
Natwest said it relied on the opinions of its independent valuers to assess a property’s suitability for a mortgage. Nationwide, it would only lend on properties with spray foam if there was evidence that it had been installed correctly. HSBC said it will not lend to listed buildings which have spray foam, although it said it may grant mortgages to other properties if a suitable specialist report and warranty is provided.
When the BBC contacted lenders in November last year, five of them including 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 also said they would not usually lend where there is a significant amount of spray foam.
