Spray foam insulation was once hailed as a miracle energy-saving upgrade. But today, thousands of homeowners across the UK are discovering that it can become a financial trap — especially when trying to sell, remortgage, or release equity from their homes.
In this article, we explore the number one question UK homeowners are asking:
Can I still get a mortgage, remortgage, or equity release if my property has spray foam insulation?
Why Lenders Are Now Refusing Spray Foam Properties
Over the last few years, mortgage lenders have become increasingly wary of properties with spray foam insulation, particularly when applied to the underside of the roof (pitched or flat). The problem is especially widespread with older homes retrofitted under schemes like the Green Homes Grant.
According to The Sun, thousands of UK homeowners have had mortgage applications rejected because of spray foam. Mortgage companies including Nationwide, NatWest, Santander, Virgin Money, and HSBC have begun instructing surveyors to down-value or decline properties with any kind of foam insulation in the loft.
Why Are Lenders So Cautious?
The main issues flagged by lenders and surveyors include:
Moisture and ventilation risks under the roofline
Structural timber concerns, including rot or restricted inspection access
Difficulty in carrying out future repairs or surveys
Concerns about improper installation by unregulated contractors
As The Guardian recently reported, nearly 40 insulation companies have been banned in the UK due to poor or unsafe installations.
Case Study: What Happened in Essex
One Essex homeowner, Mandy Hutson, shared her experience with The Times. After accepting government-backed foam installation in 2022, she later discovered that every mortgage lender declined her buyer’s application due to the spray foam. She ultimately had to pay over £8,000 to have the foam professionally removed before she could complete the sale.
This situation is becoming more common, particularly across towns in Essex and East Anglia, where many properties received insulation grants during the energy crisis.
What About Equity Release?
If you’re hoping to unlock cash from your home in later life, spray foam insulation can be an even bigger obstacle.
Equity release providers have tighter lending criteria than standard mortgage lenders. Several providers, including Aviva and Legal & General, now outright refuse to lend against properties with spray foam insulation in the roof — regardless of whether it’s open- or closed-cell foam, or whether documentation exists.
Even when a survey is offered, the outcome often leads to one conclusion: remove the insulation or lose access to borrowing.
What You Need to Know If You're in Essex or East England
If you live in Essex, Suffolk, Norfolk, or surrounding areas, your property is more likely to have been affected by retrofitted spray foam due to local uptake of government schemes.
Here’s what you need to understand:
Lenders are not interested in paperwork or guarantees if spray foam is present.
Even high-quality installations can trigger a flat “no” from banks.
The only proven solution is full professional removal.
What to Do Now
If you are trying to sell, remortgage or release equity:
Check your loft for any visible spray foam on the underside of your roof.
Do not assume paperwork will solve it — most lenders won’t accept it.
Get advice from a specialist who understands the latest mortgage trends and insulation removal.
Need help? Contact our expert team directly:
Email. info@sprayfoamremovaladviceline.co.uk
Tel. 07356 259 292
We’re based in Essex and have helped many homeowners across the East of England navigate these insulation problems.
If your home has spray foam insulation, it may already be costing you more than you think. The majority of UK mortgage and equity release lenders have now adopted a clear stance: no borrowing until the foam is gone.
Don’t leave it until you’re mid-sale or at the end of your mortgage deal. Find out your options and take action now.