The Myth Behind the Mortgage Problem with Spray Foam
What is the Spray Foam Insulation Mortgage Problem?
Many homeowners or would-be-homeowners in the UK are finding they cannot get mortgages on properties with spray foam. This is because RIC's surveyors have decided to classify both open and closed cell spray foam as a danger to internal moisture levels, making the properties un-mortgageable at the current time.
The problem with this classification is that it is fundamentally incorrect, with open cell spray foam being proven effective in domestic properties without the same risks and issues as closed cell. However, homeowners are left in limbo until the classification is changed to show the difference between the two spray foams.
What is the UK Government View on Spray Foam?
As the latest RICs guidance advises against properties with spray foam, the UK Government has come under fire from property specialists all over the country. The reason for this backlash is because the government was offering spray foam grants as part of their Green Homes scheme that only ended a year ago, providing up to two thirds of the cost of spray foam insulation to grant receivers.
This means that if you used this scheme to make your home warmer and more climate-friendly, you will now be left with the decision to stay put or pay for it to be removed so that you can move home. This lack of joined-up thinking has created a crisis for homeowners, leaving many people regretting their decision to have spray foam applied in the first place.
Where Have Spray Foam Roof Insulation Mortgage Problems Come From?
Spray foam insulation has long been marketed as an energy-efficient solution for homes, but in recent years, it has been scrutinised particularly by mortgage lenders and surveyors. The issue's root stems from a history of poor installation practices, especially involving closed-cell spray foam. When improperly applied, this dense insulation can trap moisture within the roof structure, leading to serious problems, including condensation, mould growth, mildew, and even rotting roof timbers.
As a result, RICS (Royal Institution of Chartered Surveyors) surveyors have increasingly flagged homes with spray foam insulation during property surveys, often advising lenders to proceed with caution or deny mortgage approval altogether. Unfortunately, this caution has been extended across the board, impacting open cell spray foam as well even though this type of insulation is more breathable and generally considered safe for domestic roofs when professionally installed.
This blanket approach has caused confusion and concern among homeowners and potential buyers alike. It raises the question: should all spray foam insulation be treated equally, regardless of type and installation quality? The mortgage problems associated with spray foam insulation haven't necessarily come from the material itself, but rather from a legacy of substandard applications and a lack of nuanced understanding in the property and lending sectors.
How is Spray Foam Affecting Equity Release Requests?
There is no doubt that the UK cost of living crisis is taking its toll on homeowners up and down the country, leading many to consider releasing the equity in their home to be able to make ends meet. However, much like mortgage companies, equity release firms are refusing to accept clients who have properties with spray foam installed.
This refusal has come as a shock to many homeowners as most will have never been warned about spray foam issues before and lots of clients seeking equity release won't have ever considered it until the financial crisis hit. The result? People who are unable to access the cash they have in their homes unless they are willing to pay to have it removed first – it's a vicious cycle that is leaving people without the means to live.
How Can I Deal with the Spray Foam Insulation Mortgage Problem Now?
If you don't have time to wait for the spray foam insulation mortgage problem to be resolved, then you may need to consider having your current spray foam removed to be able to sell your property. At Countrywide Roofing and Insulation, we are currently completing a number of spray foam removals for customers in the same position across the South of the country.
It is important to note that you should not attempt to remove spray foam without the input of a specialist, as you can cause significant damage to your property and even put your own health at risk when you decide to do it yourself. While it will cost you money to have spray foam insulation professionally removed, it will cost far less than having to repair damage caused when trying to do it yourself.
I Want to Install Spray Foam – Should I Cancel My Plans?
Having spray foam installed is not recognised as a safe and great solution due to issues you will have in the future, with the current anti-spray foam climate, many homeowners are being put off using it, worried about how it will affect the resale value of their home.
Finally, think about your plans for the future and when you may want to sell up and move on, and you may have to pay more for the spray foam to be removed
Unsure About How to Proceed?
Being a homeowner comes with a huge amount of stress and worry, and when issues such as the spray foam insulation mortgage problem come to light, it can be a very worrying time, leaving you unable to decide what to do.
If you are unsure about the right next step, contact Countrywide Roofing and Insulation for the advice and support you need. Call us on 0808 134 2352 or fill out the form below
Please also read the RICS release new spray foam consumer guide
How Spray Foam Removal Makes Your Property Mortgageable Again
If you already have spray foam installed and are looking to sell, remortgage, or release equity, professional removal is the most effective route to restoring your property's mortgage eligibility. At Countrywide, our spray foam removal service addresses the core concerns raised by mortgage lenders and surveyors.
By removing the spray foam, surveyors can once again inspect the underlying roof structure and timbers, providing the visibility that lenders require before approving a mortgage. This directly resolves the valuation difficulties that cause so many applications to be declined.
Our removal service also tackles related issues such as moisture entrapment, mould growth, and timber damage that can develop when foam has been improperly installed. Addressing these problems not only makes your home mortgageable but also improves its overall condition, energy efficiency, and compliance with current building standards.
Each property is different, and our team provides a tailored solution whether you need open-cell or closed-cell foam removed, or both. Once removal is complete, we issue a certificate that confirms the work has been professionally carried out — a document that many mortgage lenders and equity release providers require as part of their approval process.
The Scale of the Spray Foam Mortgage Problem
With over 250,000 homes in the UK estimated to have spray foam insulation installed, the mortgage problem affects a significant number of homeowners. Many had the foam applied under the government's Green Homes Grant scheme, which offered up to two thirds of the installation cost — only to find years later that the very insulation they were incentivised to install now prevents them from selling or remortgaging.
A notable example is that of homeowners like Mandy Hutson, who had spray foam installed using the Green Homes Grant in 2021. Despite enjoying reduced heating bills, she found lenders refused to offer a mortgage on her property. Removal would cost approximately £8,000 — highlighting the financial burden the scheme has inadvertently created for homeowners.
Spray Foam and Equity Release
The impact extends beyond standard mortgages. Equity release providers are particularly strict, often declining applications outright where spray foam is present. For homeowners relying on equity release to manage living costs — especially during periods of financial pressure — this can be devastating, leaving them unable to access funds tied up in their own home without first paying to have the foam removed.
Lifetime mortgage providers, including certain specialist lenders, may consider properties with spray foam under very specific conditions, such as BBA approval and full compliance with building regulations. However, advisers must be clear with clients about the risks: installing spray foam after completing a lifetime mortgage can violate mortgage terms, adversely affect resale value, and compromise a client's ability to fund their retirement.
What Mortgage Lenders and Surveyors Look For
When a surveyor assesses a property with spray foam, they are looking for several key risk factors. These include evidence of moisture being trapped against roof timbers, signs of condensation or mould growth, restricted ventilation caused by the foam sealing the roof space too tightly, and structural concerns from closed-cell foam that has hardened and placed stress on roof timbers.
Because the foam covers the roof structure, surveyors often cannot complete a thorough inspection of the underlying materials. This lack of visibility alone is enough for many lenders to decline a mortgage application, regardless of whether actual damage exists.
The result is that even well-installed spray foam can make a property difficult to mortgage — not because of the foam itself, but because of the uncertainty it creates for lenders and valuers. Professional removal eliminates this uncertainty entirely.
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