When the UK government launched the Green Homes Grant in 2020, many homeowners were encouraged to insulate their properties to improve energy efficiency. But for thousands of households, the scheme has had unexpected and lasting consequences — especially for those who had spray foam insulation installed.
Now in 2025, a growing number of these homes are failing mortgage checks, facing removal costs, and requiring urgent repairs — despite being "upgraded" under a government-endorsed scheme.
In this article, we break down:
- What the Green Homes Grant promised — and what went wrong
- The link between the scheme and mortgage problems
- How Countrywide Insulation is helping homeowners fix it — including free inspections and mortgage-friendly certification
What Was the Green Homes Grant?
The Green Homes Grant offered homeowners up to £10,000 to improve energy efficiency. Eligible upgrades included:
- Loft insulation
- Solid wall insulation
- Draught proofing
- Low-carbon heating
Spray foam insulation — especially for lofts and roofs — was included on the list, despite limited long-term testing on timber structures.
Many homeowners, believing they were making a smart choice (and following government advice), installed spray foam using local or third-party contractors.
The Fallout: Spray Foam Is Now a Mortgage Obstacle
Fast forward to today, and thousands of homes insulated under the scheme are now:
- Rejected for mortgages or equity release
- Difficult to sell due to red flags raised by surveyors
- Facing costly removal, despite having paid little or nothing for installation
Mortgage lenders, including Nationwide, HSBC, Santander, Virgin Money, and NatWest, have either declined mortgage applications or required additional documentation for homes with spray foam. In some cases, even after removal, lenders want proof the roof timbers are undamaged — and that the foam was removed safely.
"They encouraged us to insulate our home… now it's unmortgageable."
— The Guardian, reporting on post-grant spray foam issues (source)
What Went Wrong?
The issue isn't energy efficiency — it's how spray foam interacts with moisture and timber in typical UK roof structures. Problems included:
- Lack of proper ventilation beneath the foam
- Inability to inspect or access timber during surveys
- Increased condensation and timber rot
- Lack of accredited installer oversight under the scheme
Many Green Homes Grant installations were carried out without sufficient quality control. Some used closed-cell foam in unventilated lofts, which goes against official moisture risk guidance.
The Cost of Fixing It
Today, homeowners are often quoted £3,000–£5,000 to have the spray foam professionally removed, with additional costs if:
- Roof timbers are damaged
- A partial or full reroof is needed
- Mortgage lenders demand detailed certificates or moisture readings
Unfortunately, government-backed funding does not cover the cost of reversing the installation, and homeowners are often left footing the bill.
How Countrywide Insulation Helps Fix the Problem
At Countrywide Insulation, we've helped hundreds of homeowners who were affected by spray foam installed under the Green Homes Grant — even those who didn't realise the risk until a mortgage application was declined.
We provide:
- Free inspections with moisture testing and honest advice
- Safe, controlled mechanical spray foam removal
- Full photographic evidence and documentation
- A signed certificate accepted by lenders and surveyors
- Optional support with reroofing and ventilation upgrades if required
We understand exactly what lenders expect, and we structure our work and paperwork around those needs — saving homeowners time, money, and additional stress.
Learn more about our Spray Foam Removal Services
What If You're Still Considering a Grant?
In 2024, the Green Homes Grant was officially closed. However, some funding is still available under:
- The Great British Insulation Scheme (GBIS)
- ECO4 (Energy Company Obligation)
Spray foam is no longer the recommended solution. Most grant schemes now focus on traditional materials like:
- Mineral wool
- Loft roll
- Breathable multifoil
If you're planning an upgrade, contact us first to make sure the material is safe and mortgage-friendly.
Key Takeaways for Homeowners
- If your spray foam was installed under the Green Homes Grant, it may affect mortgage eligibility — even if it was approved at the time.
- Removal, inspection, and certification are often required to resolve the issue.
- Lenders want evidence — not just removal — to sign off on financing.
Conclusion: You Can Recover From This — With the Right Help
The Green Homes Grant was created with good intentions, but many homeowners were left with insulation that complicates surveys, blocks financing, and costs thousands to fix.
Countrywide Insulation offers a clear, reliable way forward:
- Free assessments
- Safe removal
- Mortgage-ready documentation
- Roofing and insulation upgrades if required
Book your free property inspection today
https://countrywideinsulation.co.uk/get-a-quote
Or visit our Spray Foam Removal Services page to learn more.