Spray foam insulation is often touted as the best type of insulation for the home. It has a high R-value, adds structural support to walls and roofs, has soundproofing properties, and creates an air-tight seal that greatly reduces draughts and energy loss.
Due to its effectiveness at conserving energy, spray foam insulation was once promoted by the UK government as a great way to improve a home’s energy performance. It was featured in initiatives like the Green Homes Grant, offering homeowners up to £10,000 to cover the installation of the insulation.
To everyone’s surprise, the Green Homes Grant was axed only 6 months after its launch. And three years later, TrustMark found that many of the homes that received the government-funded spray foam insulation were installed badly or didn’t work as intended, leading to issues like mould, structural problems, and infestations – common issues with spray foam.
The response was quick. Many banks and mortgage lenders stopped approving loans for homes with spray foam insulation, causing difficulties in the housing market.
In this article, we discuss the spray foam insulation mortgage problem as well as what you should do if you’re buying, selling, or remortgaging a property with spray foam insulation installed.
What Is Spray Foam Insulation?
Spray foam insulation, also known as spray polyurethane foam (SPF), is insulation that expands and hardens when it dries. It starts as liquid, then quickly grows into a thick foam that fills gaps, cracks, and hard-to-reach or uneven spaces. The hardened foam creates an airtight seal that helps reduce heat loss, improve energy efficiency, and minimise draughts.
Spray foam insulation has an R-value of around R-6 to R-7 per inch, making it one of the most effective insulators available. It’s two to three times more expensive than fibreglass or cellulose insulation, but is generally considered more efficient because it creates both an insulating layer and an air seal in one application.
Spray foam insulation comes in two main types: open-cell foam insulation and closed-cell insulation.
- Open-cell insulation: Lightweight, flexible, and remains soft after setting. It expands up to 100 times its original size, making it the preferred choice for filling small cavities and hard-to-reach spaces. It’s cheaper than closed-cell foam but has a lower R-value per inch, so it’s not as effective in very cold climates.
- Closed-cell insulation: Rigid, dense, and durable. Its compact structure gives it a much higher R-value per inch. It acts as both an air barrier and a moisture barrier, preventing water vapour from passing through. It’s suitable for roofs, basements, and areas exposed to damp conditions.
Why Do Mortgage Lenders Have a Problem With Spray Foam?
On paper, spray foam insulation is among the best insulating materials available. It has a high thermal performance, an air-tight seal, moisture resistance, and improves the structural support of walls and roofs.
However, many of those who advertise spray foam insulation as the “best” always omit one important detail: they can damage structures over time if not installed properly.
According to a report by the BBC, more than a quarter of the UK’s biggest mortgage providers refuse to offer mortgages on properties with spray foam insulation. This includes TSB Bank, Co-operative Bank, Principality, Skipton Building Society, and Aviva. Metro Bank and Yorkshire Building Society also don’t lend to properties with significant amounts of spray foam installed.
It’s not just mortgage lenders that have problems with spray foam insulation. Mortgage guidance from RICS, one of the most respected insulation industry bodies, also suggests that spray foam removal might be necessary to protect your home.
This begs the question: why?
Here are the top spray foam insulation mortgage issues:
Can Result In Structural Damage
Spray foam insulation that has been installed incorrectly or in a poorly ventilated room can trap moisture within the structure, leading to rot, mould growth, and long-term damage that may compromise the integrity of the building.
Difficult to Remove
Spray foam insulation is incredibly difficult to remove, often requiring professional intervention and hours of work which can often make selling a home with spray foam incredibly difficult. It can also be quite expensive. The cost and complexity of removal can be prohibitive for homeowners, deterring lenders from approving mortgages on such properties.
Causes Hidden Timber Damage
Spray foam adheres strongly to roof timbers, making it difficult for surveyors to identify rot, decay, or other structural issues.
Lowers Property Value
Due to issues like structural damage, mould, and wood rot, properties with spray foam insulation often face lower valuations or outright refusal from valuers.
The Royal Institution of Chartered Surveyors (RICS) also confirmed that the presence of spray foam may affect a surveyor’s valuation, especially if the spray foam has been applied incorrectly.
Seen as Unattractive
Spray foam insulation often looks unattractive, potentially deterring buyers and lowering property value. Spray foam can’t be hidden or decorated over, as it may trigger chemical reactions or damage the foam.
May Cause Health Issues
Spray foam releases toxic chemicals and volatile organic compounds (VOCs), such as isocyanates, during and after installation, which can cause health issues, including eye, skin, and respiratory irritation, as well as asthma and lung damage.
These compounds can continuously release health-harming chemicals (off-gassing), compromising indoor air quality and causing adverse health effects.
Bad for the Environment
Spray foam insulation is extremely harmful to the environment. It’s made from petrochemical-based materials and releases greenhouse gases during production and installation. It’s not biodegradable and is difficult to dispose of safely if removed, contributing to long-term environmental waste.
Even with a low-cost mortgage, environmentally-conscious buyers may avoid homes with spray foam insulation if foam removal is required. This further incentivises mortgage lenders to refuse mortgages on homes with spray foam because it reduces the pool of potential buyers.
What Can Affected Homeowners Do?
If you’re planning to remortgage or sell a home with spray foam insulation, here’s what you can do:
Note: There are plenty of options here, but ultimately hiring a spray foam removal team using professional spray foam removal tools is the best way to go to protect your mortgage and house sale.
Obtain a Specialist Survey
Some lenders accept homes with spray foam insulation if a specialist survey confirms that the roof and timbers are in good condition. Look for firms that state they’re ‘Regulated by the RICS.’ Otherwise, lenders may question the validity of the surveyor’s work.
Request for Paperwork
If you haven’t already, request paperwork from the original installer confirming that the spray foam meets quality standards.
The paperwork should include independent test certificates, awarded to spray foam products by organisations like the British Board of Agrément (BBA), as well as the company that provided the product.
These documents can help reassure lenders and prospective buyers that the insulation is compliant and properly installed. It can also help surveyors properly assess the work done on the home.
Other important documents that mortgage lenders may ask for include:
- Product Certificate (BBA or KIWA)
- Installer Warranty
- Product warranty
- Condensation Risk Report
- Before and after install photos
Some lenders may also request a health check to determine whether or not the foam has caused any damage, and if it’s likely to cause damage in the future. They may also ask you to install a vapour control layer to change the risk profile from high or medium to low.
Look For Another Mortgage Lender
As of 2025, more than 25% of mortgage lenders in the UK refuse to provide loans on properties with spray foam roof insulation. If your current lender does the same, it’s best that you approach other providers.
Most lenders grant mortgages on a case-by-case basis. As long as the property has been professionally inspected and documented (and confirmed with no issues), the mortgage application may go through.
For example, Nationwide says that it will lend to you as long as you have paperwork confirming that the spray foam was properly installed and the roof was in good condition before the installation. The same is said with HSBC.
Meanwhile, Halifax told BBC that they “wouldn’t refuse to lend on a home solely due to the presence of foam insulation” and that they treat each case on its merits based on the valuer’s report.
If you’re unsure of where to start, speak to a mortgage broker and ask what your options are. The mortgage broker should be able to give you a list of lenders that are willing to consider homes with spray home insulation, explain any additional requirements, and guide you through the process needed to improve your chances of approval.
Have the Spray Foam Insulation Professionally Removed (Recommended)
If lenders remain unwilling to provide a mortgage despite proper documentation, or the spray foam insulation has caused notable damage to the roofs that voids it from remortgage, consider having the spray foam insulation professionally removed.
Spray foam removal is complex, labour-intensive, and costly, but it greatly increases the chance of remortgage and improves its appeal to buyers.
Just make sure to hire a professional spray foam removal company through National Spray Foam Removal. Unqualified or inexperienced contractors can cause significant damage to roof timbers and joists, potentially creating more problems than the foam itself.
We work with spray foam removal companies that can offer competitive pricing while guaranteeing safe and professional removal. Contact us today for a free, no-obligation quote, and we’ll get back to you as soon as possible!
Can Homeowners Get an Equity Release If Their Home Has Spray Foam Insulation?
Most equity release lenders don’t approve applications for properties with spray foam insulation, particularly when it’s applied to the underside of the roof. Equity release lenders have stricter criteria than standard mortgage providers, and the potential risks associated with spray foam make these properties unsuitable for their lending policies.
LiveMore used to be one of the few equity release lenders that accepted properties with spray foam insulation, but their policy recently changed in early 2025.
To apply for an equity release with LiveMore (and most equity release lenders), homeowners must have the spray foam removed before submitting the request.
How Much Does Spray Foam Insulation Removal Cost?
In the UK, spray foam removal can cost between £2,000 to £5,000 on average, depending on the size and accessibility of the area, as well as additional services like repairs and waste disposal.
Closed-cell foam insulation removal costs double the amount of open-cell insulation removal, with a typical 3-bed semi-detached house costing upwards of £10,000 or more.
Can I Remove Spray Foam Insulation Myself?
While it’s technically possible, removing spray foam insulation without professional equipment and experience can damage the structure of the house, leading to costlier repairs. It can also release harmful chemicals that may cause irreversible respiratory problems.
The removal itself is dangerous. Most ‘tutorials’ online ask homeowners to cut and scrape away the foam with serrated blades or knives, and we don’t have to tell you how quickly that can turn terribly wrong.
For the safety of both you and your property, DIY spray foam removal is never recommended.
What Should I Do When Buying a Property With Spray Foam Roof Insulation?
The first thing to do when buying a property with spray foam insulation is to ask the homeowners for all relevant documentation related to the insulation, as well as recent valuation reports. Lenders often rely on the valuer’s comments to tell them whether the property is acceptable.
It’s also a good idea to ask if the original homeowner would consider removing the spray foam insulation before your purchase.
