Spray foam insulation in a loft can make a UK property harder to sell or remortgage because lenders and surveyors may not be able to inspect roof timbers properly. The government’s action is mainly about poor quality insulation installed under certain schemes, including checks and repairs where work is defective. It does not mean every home with spray foam will automatically be accepted by a mortgage lender.

What has the government said?

In January 2025, the Department for Energy Security and Net Zero said 39 businesses had been suspended from installing new solid wall insulation after checks found widespread poor quality work under ECO4 and the Great British Insulation Scheme. The department also said Ofgem would contact affected households, arrange checks and ensure installers fund required repairs where the scheme protections apply (GOV.UK, 2025).

The issue has wider relevance for mortgage borrowers because some homeowners have reported being unable to sell or remortgage after insulation work raised concerns about damp, ventilation, paperwork or roof condition. According to The Guardian, ministers said affected homes should not have to pay for repairs where installers are responsible under the scheme (The Guardian, 2025).

Why can spray foam affect a remortgage?

The mortgage issue is usually about security risk. A lender needs confidence that the property is suitable security for the loan. If spray foam has been applied to the underside of the roof, it may hide rafters, felt, ventilation gaps and signs of damp or decay. A surveyor may then be unable to give the lender a clear view on roof condition.

That can lead to delays, a lower loan-to-value (LTV), extra evidence requests, or a declined application. It can affect a sale, a remortgage to a new lender, a further advance or equity release. It can also appear during a valuation even if the borrower has never missed a payment.

MoneyHelper explains that remortgaging means moving to a new mortgage deal, either with the same lender or a new one, and that borrowers should compare fees, rates and eligibility before proceeding (MoneyHelper, 2026). With spray foam, the property’s condition and paperwork become part of that eligibility check.

Does the fix make affected homes mortgageable?

Not automatically. Government backed checks and repairs may help where the problem relates to poor quality work under ECO4 or the Great British Insulation Scheme. They may also improve evidence for homeowners who need to show what was installed, who installed it and whether it now meets relevant standards.

Read also: TSB Downvalued My House by £1.3M: What UK Remortgage Borrowers Can Do

But lenders still set their own property criteria. A future buyer’s lender, or your new lender on a remortgage, can still ask for a specialist survey, evidence of ventilation, installation records, guarantees, photographs or removal. Which? notes that mortgage and property decisions involve lender criteria, valuation and affordability checks, so borrowers should expect requirements to vary (Which?, 2026).

What should homeowners do now?

Do not pay for removal as the first step unless a qualified surveyor or lender has made that necessary. Poor removal can damage a roof and may not solve the paperwork problem.

Start by collecting the installation certificate, guarantee, product details, installer name, scheme paperwork, photographs, invoices and any survey reports. If the work was funded through ECO4, the Great British Insulation Scheme or another official route, check whether you are included in an Ofgem or scheme review before paying privately.

If your fixed-rate or tracker deal is ending, ask your current lender about a product transfer as well as checking a full remortgage. A product transfer may involve fewer property checks than moving to a new lender, but this is not guaranteed. Also speak to an FCA-authorised mortgage adviser who understands lender policy on spray foam.

Bottom line

The government action is useful for affected households, especially where insulation was badly fitted under specific schemes, but it is not a blanket mortgage guarantee. The practical order is evidence first, specialist inspection second, lender policy check third, then repair or removal only if the facts support it.

This article is general educational information, not regulated mortgage advice, personalised financial advice, lending advice, legal advice or tax advice. Refisage is not authorised by the Financial Conduct Authority. Eligibility, fees, availability and lender requirements vary by product, property and personal circumstances, and rules can differ across England, Scotland, Wales and Northern Ireland. Consider speaking to an FCA-authorised mortgage adviser, MoneyHelper, a qualified surveyor and, where relevant, a qualified tax professional before deciding. Your home may be repossessed if you do not keep up repayments on your mortgage.