Broker UK Moneyman has partnered with LiveMore Mortgages to offer equity release loans to borrowers who have spray foam insulation — although the client will need to have had a quote to remove the foam when they apply and undertake to have it removed within 90 days of the mortgage completing.    

Around 250,000 UK homes have problematic spray foam insulation, where foam has been applied using powered sprayers, which then expands and turns to a solid coating to insulate roofs, lofts, walls and floors, according to a survey by the Residential Property Surveyors Association. 

The method had become increasingly popular over the last five years, until it was found that when used in roofs and lofts, there is a tendency over time for the foam to trap moisture around wooden joints, which leads to rotting. The hardened foam can also warp wooden beams. 

This has led to many mortgage and equity release firms refusing to lend to homes with this type of loft insulation unless it is removed. 

Adding spray foam insulation to a typical home costs around £3,000 and around £5,000 to remove. 

UK Moneyman head of later life lending Dan Osman says: “Many older clients took advantage of government incentives to improve the energy efficiency of their homes to help with the rising cost of living.  

“Some approved contractors used spray foam insulation as a legitimate, approved technique. Sadly, this has proved unacceptable to many lenders and frustratingly lifetime mortgage lenders until now.”