⚠️ URGENT
January 18, 2025 8 min read By Expert Team

Why Major UK Lenders Are Rejecting Properties with Spray Foam Insulation

A comprehensive breakdown of which UK lenders are refusing mortgages on spray foam properties, the reasons behind these decisions, and what homeowners can do to protect their investments.

Sad investor get bad news when his loan amount credit reject in front of bank, business of finance and unemployment

🚨 The Mortgage Crisis Unfolding

Critical Situation

60-80% of mortgage applications on properties with spray foam insulation are now being declined. This represents a seismic shift in the UK property market, affecting hundreds of thousands of homeowners.

The spray foam insulation crisis has reached a tipping point in 2025. What began as isolated concerns from individual lenders has now evolved into industry-wide policy changes that are fundamentally altering the UK property market.

75%
Major Lenders
Now have restrictions
£100k+
Average Loss
Property value decline
500k+
Properties
Potentially affected

🏦 Major Lenders Taking Action

Nationwide Building Society

DECLINING

Policy: Complete ban on lending for properties with spray foam insulation applied to timber structures.

Effective: January 2025 | Impact: No mortgages, refinancing, or product transfers

Halifax (Lloyds Banking Group)

DECLINING

Policy: Will not lend on properties where spray foam has been applied to roof spaces or timber structures.

Effective: December 2024 | Impact: All mortgage products affected

Santander UK

RESTRICTED

Policy: Case-by-case assessment required. Will consider lending with specialist surveys and insurance coverage.

Effective: November 2024 | Impact: Higher deposits, specialist surveys required

Barclays

RESTRICTED

Policy: Requires specialist reports and evidence of insurance cover. Higher LTV restrictions apply.

Effective: January 2025 | Impact: Maximum 75% LTV, additional survey costs

NatWest Group

CAUTIOUS

Policy: Still lending but requires enhanced surveys and professional reports on spray foam condition.

Effective: October 2024 | Impact: Extended processing times, higher survey costs

Don't Wait - Get Your Property Assessed Today

The sooner you understand your property's situation, the more options you'll have. Our experts can provide a comprehensive assessment and guide you through your best course of action.