LiveMore has launched a mortgage designed for homeowners whose properties have become difficult to finance because of spray foam insulation.
The specialist lender said the product would allow applicants to secure a mortgage based on the expected condition of their home after the insulation has been professionally removed.
As many as 250,000 homes are believed to be affected by spray foam insulation, which can make properties difficult to sell, remortgage or use to release equity.
The insulation was installed in some homes under the government’s Green Homes Grant as an energy-efficiency measure. However, concerns about poor installation, roof damage and longer-term structural risks have led many mortgage providers to reject affected properties.
Homeowners can consequently face a choice between attempting to remove the material themselves, employing unregulated contractors or remaining in a property despite changes in their personal or financial circumstances.
LiveMore’s mortgage is being offered in partnership with Verified Building Services, a specialist provider known as VBS. Under the arrangement, vetted tradespeople will remove the spray foam without requiring an upfront payment from the customer.
The property will be valued on the assumption that the insulation has already been removed, allowing LiveMore to consider the mortgage application while the remedial work forms part of the process.
Leon Diamond (pictured), chief executive of LiveMore, said: “There are thousands of homeowners who, through no fault of their own, have been left in limbo because they tried to improve their homes.
“Many will have been turned down by multiple lenders and are feeling desperate – but we’re here to help homeowners who would otherwise be stuck.”
LiveMore was established to provide mortgages for later-life borrowers but has expanded into lending for people with more complex circumstances. It recently reduced its minimum borrowing age to 40.
The lender’s Mortgage Matcher service allows brokers to include pensions, savings, investments, inheritance and other sources of income when assessing a customer’s affordability.
Diamond said: “Our mission is to champion underserved borrowers, and we saw an opportunity to help people not just with the lending but also get to the root of the problem and remove the spray foam.
“We believe this product is unique in the market in trying to address both the technical and financial barriers associated with spray foam insulation.
“For many homeowners, it offers something that has been missing until now – a realistic way to move from no back to yes – and move forward with their lives.”
