Spray Foam Insulation and Mortgage Problems
Why lenders reject spray foam and what you can do about it
The Reality for UK Homeowners
If you have spray foam insulation in your loft or roof space, you may face serious mortgage problems. An estimated 70-80% of UK mortgage lenders now reject properties with spray foam insulation—making it difficult to sell, remortgage, or release equity from your home.
Common Mortgage Problems with Spray Foam
Sale Falls Through
You've accepted an offer on your property, surveys have been done, and then the buyer's lender refuses to approve the mortgage because of spray foam insulation.
What happens: The buyer either needs to find a specialist lender (with higher rates), pay cash, or withdraw their offer entirely. Most sales fall through at this point.
Cannot Remortgage
Your current mortgage deal is ending, but when you try to remortgage, your existing lender or any new lender refuses because they've updated their criteria to reject spray foam properties.
The consequence: You're stuck on the standard variable rate (SVR), which can be 2-4% higher than competitive deals—costing you hundreds of pounds extra each month.
Equity Release Blocked
You're hoping to release equity from your home for retirement, home improvements, or other needs—but equity release providers reject properties with spray foam.
Impact: Your wealth is trapped in your property, inaccessible when you need it most.
Buying Problems
You're buying a property and discover during the survey that it has spray foam insulation. Your lender rejects the mortgage application.
Options: Walk away from the purchase, negotiate for the seller to remove the foam before completion, or find an alternative lender (likely with worse rates).
Why Lenders Have a Problem with Spray Foam
Mortgage lenders aren't being unreasonable—they have valid concerns about lending against spray foam insulated properties:
1. Cannot Inspect Roof Structure
Spray foam covers roof timbers, making it impossible for surveyors to check for rot, woodworm, or structural damage. The lender's security (your home) may have hidden problems worth thousands to repair.
2. Ventilation Concerns
Most spray foam installations block natural roof ventilation, which can lead to condensation and accelerated timber decay—potentially creating expensive structural problems.
3. Reduced Marketability
If you default on your mortgage, the lender needs to sell the property to recover their money. A spray foam property has far fewer potential buyers, meaning longer sale times and lower prices.
4. RICS Guidance
The Royal Institution of Chartered Surveyors (RICS) has issued guidance requiring surveyors to flag spray foam as a potential issue, which triggers lender concerns.
Which Lenders Accept Spray Foam Properties?
Major Lenders That Reject Spray Foam
- • Nationwide Building Society
- • Halifax
- • HSBC UK
- • Santander UK
- • Barclays
- • NatWest Group
- • Virgin Money
- • TSB Bank
Limited Options with Conditions
Some building societies and specialist lenders may consider spray foam properties, but typically require:
- • Independent surveyor report confirming no issues
- • Lower loan-to-value ratios
- • Higher interest rates (1-3% above standard)
- • Professional installation certification
Solutions to Spray Foam Mortgage Problems
Option 1: Professional Removal
The most reliable solution is having the spray foam professionally removed by a certified specialist.
Benefits:
- • Restores full mortgage eligibility with all lenders
- • Allows full property inspection
- • Removes resale barriers
- • Certification documents the work for future buyers/lenders
Typical cost: £3,000-£15,000+ depending on property size and foam type
Option 2: Specialist Survey
In some cases, a specialist survey may satisfy lender requirements without removal—particularly if the installation was done professionally to high standards.
Note: This only works with a minority of lenders and depends on the quality and type of foam installation. Most lenders still require removal.
Option 3: Specialist Lenders
Some specialist lenders will accept spray foam properties, but at significantly higher interest rates.
Consideration: The extra interest over the mortgage term often exceeds the cost of foam removal. For example, 2% extra interest on a £200,000 mortgage costs £4,000/year—more than most removal costs within 2-3 years.
The Best Long-Term Solution
For most homeowners, professional spray foam removal is the best solution because:
- • One-time cost vs ongoing higher mortgage payments
- • Full market access when selling (more buyers = higher prices)
- • Peace of mind that your roof structure can be properly maintained
- • No ongoing restrictions on remortgaging or equity release
Frequently Asked Questions
Will lenders ever change their policies?
Industry experts believe lender restrictions are likely to get stricter, not looser. As more evidence emerges about spray foam problems, and as RICS guidance remains in place, there's no indication policies will relax.
Can I remove spray foam myself?
DIY removal is not recommended. Professional removal is needed to ensure the work is done safely, completely, and documented properly. Lenders typically require certification from qualified specialists.
How long does professional removal take?
Most residential properties can be completed in 2-5 days, depending on size, foam type, and access. The work is typically less disruptive than homeowners expect.
What certification do I need after removal?
Look for a removal certificate that confirms complete removal, timber condition inspection, and compliance with building standards. RICS or PCA certification is widely accepted by lenders.
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