Quarter of lenders rejecting homes with spray foam insulation, study finds

A study conducted by the BBC has found that some mortgage firms are reluctant to deal with homes with the material in the roof due to concerns over poor fitting leaving moisture trapped and roof timbers at risk of decay.

It is estimated as many as 250,000 homes in the UK have this type of insulation, with much of it installed under the previous government’s Green Homes Grant scheme.

When contacted by the BBC, the 20 largest lenders in the UK, external, five of them, TSB Bank, Skipton Building Society, Co-operative Bank, Principality and equity release lender Aviva - said they did not lend against properties where spray foam is found in the roof space.

The Yorkshire Building Society and Metro Bank said they would not usually lend where there is a significant amount of spray foam.

Equity release provider More 2 Life told the BBC it will only lend on properties with spray foam where it was fitted as part of an authorised new build and has the necessary documentation.

Other lenders such as Lloyds, Nationwide, Barclays, the NatWest Group and Santander have said they consider applications on a case-by-case basis, and will take a valuer’s report into account.

They may, however, ask homeowners for documentation showing it has been installed correctly or for a specialist report to be carried out.

A government spokesperson said it had “consulted lenders about this matter who say they rely on the views of valuers and surveyors on this issue”.

They added any measures fitted under government schemes must be done by a Trustmark-registered installer “to the highest standards with issues promptly and properly rectified”.