Spray Foam Mortgage Crisis: 2024 Update

The Spray Foam Crisis Explained

Spray foam insulation, once promoted as an energy-saving miracle, has become a homeowner nightmare. Thousands of properties installed with spray foam—particularly in loft spaces—are now difficult or impossible to mortgage, sell, or insure.

Why Lenders Reject Spray Foam Properties

1. Roof Ventilation Issues

Spray foam creates an impermeable barrier. While this seems beneficial for insulation, it prevents roof timbers from "breathing":

• Moisture becomes trapped in roof timbers
• Wood rot accelerates without airflow
• Structural integrity cannot be inspected without foam removal
• Hidden damage can remain undetected for years

2. Inspection Impossibility

Mortgage surveyors cannot assess:

• Condition of roof timbers (rafters, purlins, ridge boards)
• Presence of rot, woodworm, or beetle infestation
• Structural adequacy for additional weight (solar panels, etc.)
• Historical repairs or alterations

3. Removal Costs

If problems are discovered, removal is expensive:

• Specialist contractors required (not standard builders)
• Costs typically £8,000-£25,000 depending on property size
• Disposal classified as hazardous waste
• Roof timbers often damaged during removal

Which Lenders Accept Spray Foam?

2024 Lender Positions

Note: Lender policies change frequently. Always verify current policy with a mortgage broker.

Types of Spray Foam and Acceptability

Open-Cell vs Closed-Cell

Open-Cell Foam (More Problematic)

• Softer, sponge-like texture
• Partially vapor permeable
• Still blocks visual inspection
• Can absorb moisture
• Most lenders reject regardless

Closed-Cell Foam (Extremely Problematic)

• Hard, rigid texture
• Completely vapor-proof
• Traps moisture in timbers
• Higher risk of timber rot
• Nearly all lenders reject

Spray Foam in Different Locations

Loft/Roof Space (Highest Risk)

This is where spray foam causes most problems. Lenders are highly cautious about roof-level applications.

Cavity Walls (Moderate Risk)

Less problematic but still concerning. Some lenders require specialist surveys.

Under-Floor (Lower Risk)

Generally more acceptable as inspection access is easier and ventilation less critical.

Getting a Mortgage on a Spray Foam Property

Step 1: Get a Specialist Survey

Commission a RICS structural survey specifically addressing:

• Type of spray foam installed
• Coverage area and thickness
• Visible condition of accessible timbers
• Ventilation adequacy
• Evidence of moisture or rot
• Recommended monitoring or remediation

Cost: £500-£1,200 depending on property size.

Step 2: Use a Specialist Mortgage Broker

Standard brokers may not know which lenders accept spray foam. Use a broker who:

• Has recent experience with spray foam cases
• Maintains relationships with lenders' underwriting teams
• Can submit pre-application inquiries

Step 3: Consider Removal (If Necessary)

If no lender will accept the property:

• Get 3+ quotes for removal (£8,000-£25,000 typical)
• Ensure contractor is CIGA or similar accredited
• Budget for roof repairs post-removal
• Get completion certificate for future sales

Selling a Property with Spray Foam

Disclosure Requirements

You must disclose spray foam presence in TA6 Property Information Form:

• Failure to disclose can result in legal action
• Buyers will discover it during survey anyway
• Non-disclosure voids seller protection insurance

Expected Impact on Sale

• Reduced buyer pool: Cash buyers or those with large deposits
• Lower offers: Typically 10-20% below market value
• Longer sale times: Average 6-12 months vs 3-4 months normally
• Fall-throughs: Higher rate of buyers withdrawing after survey

Marketing Strategies

1. Be upfront: Mention spray foam in listing to avoid time-wasters
2. Price realistically: Account for removal costs or limited financing
3. Provide documentation: Installation certificates, surveys, guarantees
4. Offer incentives: Contribute to removal costs or legal fees
5. Target cash buyers: Market to investors or downsizers

Legal Recourse

Claims Against Installers

If spray foam was installed recently:

• Mis-selling claims: If not warned about mortgage implications
• Negligent installation: If installed contrary to best practices
• Time limits: 6 years from installation (England/Wales)

Government Scheme Installations

If installed under ECO, Green Deal, or similar:

• Contact the scheme administrator
• File complaint with Trustmark (if applicable)
• Consider ombudsman referral
• Explore compensation schemes

Insurance Considerations

Buildings Insurance

• Must disclose spray foam to insurer
• Some insurers refuse coverage
• Others charge 10-30% premium increase
• Roof-related claims may be excluded

Contents Insurance

Generally unaffected, but check policy terms for exclusions related to roof defects.

What If You're Considering Spray Foam?

Don't Install Without:

1. Checking impact on mortgage and resale value
2. Obtaining written confirmation from your current lender
3. Considering alternative insulation methods
4. Getting independent advice (not from installer)
5. Reviewing your property insurance policy

Better Alternatives

• Blown mineral wool: Effective, removable, lender-friendly
• Rigid insulation boards: Between/under rafters, maintains ventilation
• Sheep's wool: Natural, breathable, sustainable
• Multifoil: Thin, effective, doesn't obscure structure

Government Response

Following pressure from homeowner groups:

• Spray foam no longer eligible for most government grants
• Trustmark reviewing accreditation for spray foam installers
• Trading Standards investigating mis-selling claims
• No compensation scheme announced (as of November 2024)

Get Expert Help

Related Articles

• Complete Spray Foam Guide
• How to Claim Compensation
• Find Accredited Removal Contractors