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Spray Foam Mortgage Lenders Guide 2024

Complete UK lender-by-lender breakdown showing which mortgage providers accept spray foam insulated properties, which reject outright, and what conditions apply. Updated November 2024.

Current Status
As of November 2024, over 40 major UK lenders completely reject properties with spray foam roof insulation. The list is growing monthly as more lenders update policies.

Quick Summary

40+
Complete Rejection
Won't lend at all
10-15
Conditional Accept
Strict requirements
5-10
May Consider
Case by case

Lenders Who Completely Reject Spray Foam

These lenders will not provide mortgages on properties with spray foam roof insulation under any circumstances:

No Exceptions Policy

Major High Street Banks

  • • Halifax
  • • Lloyds Bank
  • • Bank of Scotland
  • • TSB
  • • Virgin Money
  • • Clydesdale Bank
  • • Yorkshire Bank
  • • NatWest (most cases)
  • • Royal Bank of Scotland

Building Societies

  • • Skipton Building Society
  • • Leeds Building Society
  • • Nationwide (policy tightening)
  • • Yorkshire Building Society
  • • Coventry Building Society
  • • Newcastle Building Society
  • • Principality Building Society
  • • Cumberland Building Society
Recent Policy Changes
TSB, Skipton, and Leeds all updated policies in 2023-2024 to blanket reject spray foam. More lenders are expected to follow. Check current status before making purchase decisions.

Lenders With Conditional Acceptance

These lenders may consider lending but impose strict conditions and requirements:

Santander

Conditional

Requirements:

  • • Specialist survey confirming no timber damage
  • • 25-year insurance-backed guarantee
  • • Confirmation roof structure inspectable
  • • May require higher deposit (25%+)
Note: Policy varies by case. Many applications still rejected even with requirements met.

Barclays

Conditional

Requirements:

  • • Professional survey with timber inspection report
  • • Written confirmation foam installed by certified installer
  • • Adequate loft ventilation confirmed
  • • Possibly higher interest rates
Note: Acceptance not guaranteed. Underwriters have discretion to decline.

HSBC

Case-by-Case

Requirements:

  • • Detailed survey addressing spray foam specifically
  • • Valuer must confirm no defects
  • • Evidence of proper installation
  • • May restrict loan-to-value (LTV)
Note: Policy inconsistent across branch network. Get written confirmation before proceeding.

Specialist/Alternative Lenders

These lenders may be more flexible but typically charge higher rates:

Specialist Lenders Who May Consider

Kensington Mortgages

May consider with comprehensive surveys and guarantees

Rates typically 1-2% above standard market

Precise Mortgages

Case-by-case assessment, focus on property condition

Requires 25-30% deposit minimum

Foundation Home Loans

May accept with specialist valuation

Higher fees and restricted products

Specialist Lender Trade-Offs
Specialist lenders typically charge 1.5-3% higher interest rates, require larger deposits (25-40%), have higher arrangement fees (£2,000-£5,000), and offer fewer product choices. Factor these costs into your decision.

What Lenders Look For

Key Assessment Criteria

1

Timber Accessibility

Can roof timbers be inspected for damage? Spray foam often makes this impossible, creating unknown structural risk.

2

Evidence of Damage

Any signs of moisture damage, rot, or structural issues? Even minor concerns typically result in rejection.

3

Professional Installation

Was foam installed by certified professional with guarantees? DIY installations almost always rejected.

4

Insurance-Backed Guarantees

Is there valid 25-year insurance-backed guarantee covering defects and damage? Most installations lack adequate warranties.

5

Resale Valuation Risk

How does spray foam affect property value and future saleability? Lenders consider whether they could recover funds if repossession needed.

If You're Buying a Property With Spray Foam

Essential Steps Before Purchase

  1. 1.

    Get Mortgage Agreement in Principle FIRST

    Don't proceed with offer until you have written confirmation from a lender they'll lend on the property. Generic AIPs aren't enough - disclose spray foam upfront.

  2. 2.

    Commission Independent Survey

    Get specialist spray foam survey (£400-£800) before exchange. This identifies problems and gives evidence for price negotiation or walking away.

  3. 3.

    Negotiate Removal into Purchase

    Best approach: Reduce offer price by removal cost (£3,000-£8,000) plus additional discount for hassle. Seller may prefer to remove before sale.

  4. 4.

    Build in Contingency Period

    Include clause allowing you to withdraw if mortgage ultimately rejected due to spray foam. Protects your deposit and survey costs.

If You're Selling a Property With Spray Foam

Option 1: Remove Before Marketing

ADVANTAGES:
  • • Access to all buyers and lenders
  • • Faster sale process
  • • Higher achievable price
  • • No negotiation over costs
DISADVANTAGES:
  • • Upfront cost £3,000-£8,000
  • • Time delay (2-4 weeks)
  • • Risk if sale falls through

Option 2: Reduce Price and Disclose

ADVANTAGES:
  • • No upfront removal cost
  • • Immediate marketing
  • • Buyer may accept spray foam
DISADVANTAGES:
  • • Very limited buyer pool (cash buyers mainly)
  • • 15-30% lower offers typical
  • • Longer time on market
  • • Multiple sales may fall through
Estate Agent Advice
Most estate agents now recommend removal before marketing for properties in £200k+ price bracket. For budget properties or cash buyer markets, pricing reduction may work.

Get Expert Spray Foam Advice

Navigating the spray foam mortgage crisis requires specialist knowledge. We can connect you with experts who understand lender policies, can arrange specialist surveys, and help you make the right decision for your circumstances.

Get Free Assessment Removal Cost Guide