Executive Summary
- Major UK lenders including Nationwide, Halifax, Santander, and others are now refusing mortgages on properties with spray foam insulation
- Property values are dropping by 20-40% when spray foam is discovered
- Insurance companies are imposing exclusions and higher premiums
- Professional assessment is now essential for any property with spray foam insulation
The Spray Foam Crisis: How Did We Get Here?
Spray foam insulation was once hailed as a revolutionary solution for home insulation. Its ability to expand and fill gaps, creating an airtight seal, made it popular among homeowners looking to improve energy efficiency. However, what seemed like a perfect solution has become a homeowner's nightmare in 2024 and 2025.
The Numbers Don't Lie
UK properties affected
Estimated total property value lost
Of mortgage applications rejected
The Perfect Storm
Several factors have converged to create the current crisis:
Poor Installation Practices
Many spray foam installations were carried out by unqualified contractors using substandard materials, leading to structural damage and health hazards.
- • Inadequate mixing ratios causing incomplete curing
- • Excessive application thickness leading to structural stress
- • Poor ventilation during application
- • Use of non-certified materials
Structural Problems
Spray foam can cause roof timbers to bend, tiles to dislodge, and create moisture problems that weren't apparent during installation.
- • Timber warping and sagging under foam weight
- • Roof tile displacement and cracking
- • Trapped moisture leading to rot
- • Compromised structural integrity
Maintenance Issues
Once applied, spray foam makes roof spaces virtually inaccessible for maintenance, electrical work, or plumbing repairs.
- • Cables and pipes encased in foam
- • Impossible to access for electrical safety checks
- • Plumbing repairs become major excavations
- • Fire safety inspections compromised
Removal Difficulties
Spray foam is extremely difficult and expensive to remove, often requiring specialist equipment and causing further damage to the property.
- • Specialist removal equipment required
- • High risk of structural damage during removal
- • Costs ranging from £4,000 to £12,000+
- • Disposal issues due to chemical content
Which Lenders Are Refusing Spray Foam Properties?
The list of lenders refusing to provide mortgages on properties with spray foam insulation continues to grow. Here's the current situation as of January 2025:
Complete Refusal (Will Not Lend)
- Nationwide Building Society - Policy since March 2024
- Halifax - Complete ban since June 2024
- Santander - No exceptions since July 2024
- NatWest - Blanket refusal since August 2024
- Royal Bank of Scotland - Complete ban
- TSB - No lending since September 2024
- First Direct - Will not consider
- Metro Bank - Complete refusal
Conditional Acceptance (Heavy Restrictions)
-
Barclays
Case-by-case basis, requires structural engineer report, maximum 70% LTV, specialist survey mandatory
-
HSBC
Requires certified removal or comprehensive inspection report, higher rates apply
-
Lloyds Banking Group
Heavily restricted, requires foam removal guarantee, maximum 60% LTV
-
Virgin Money
Requires complete foam removal before mortgage approval, no exceptions
Important Note: This list is constantly evolving. Many smaller building societies and specialist lenders are also implementing restrictions. Even lenders showing as "conditional" are rejecting 85%+ of applications. Always verify current lending policies before proceeding with any property transaction.
Financial Planning for Spray Foam Removal
To protect your investment, it's crucial to plan for the removal costs and alternative insulation options:
Step 1: Assess Your Property
- Identify spray foam insulation
- Measure property size
- Calculate removal costs (£50 per m²)
Step 2: Alternative Insulation Options
- Consider blown-in insulation
- Evaluate other materials
- Compare costs and benefits
Step 3: Financial Planning
- Budget for removal costs (£4,000-£8,000 typical house)
- Factor in alternative insulation costs (£2,000-£4,000)
- Consider property value implications