Thousands of Scottish homeowners are being warned they could be trapped in properties they cannot sell after spray foam insulation emerged as a major red flag for mortgage lenders.
An estimated 250,000 homes across the UK are now considered potentially unmortgageable due to the controversial insulation product, with lenders increasingly refusing loans, according to home improvement firm PureBuilt.
Many homeowners had the insulation installed through government-backed schemes designed to improve energy efficiency and cut household bills. Instead, some now face collapsed sales, remortgage refusals and removal costs running into tens of thousands of pounds.
The issue has become so widespread that spray foam insulation now accounts for one in three insulation complaints received by Citizens Advice.
Up to one in four major mortgage lenders will not lend against homes containing spray foam insulation, regardless of whether it was professionally installed.
For affected homeowners, the consequences can be severe. Removal costs can range from £4,500 to £15,000, PureBuilt said, with bills typically falling on the homeowner rather than the installer or the government schemes that encouraged uptake.
Enforcement agencies have also raised concerns about a growing second wave of fraud targeting victims.
National Trading Standards says rogue operators are increasingly cold-calling homeowners to offer costly removal services, while some have reportedly used planning applications to identify potential targets.
Trading Standards Scotland has urged homeowners not to engage with unsolicited approaches and to seek independent advice before agreeing to any work.
Michael Davie, home improvement specialist at PureBuilt, said the company is increasingly being contacted by homeowners whose property sales have stalled because of spray foam insulation.
“We are now seeing spray foam turn up on surveys as a red flag, not an upgrade,” he said.
“People thought they were improving their homes, but instead they have ended up with properties that some lenders will not touch.”
Davie said homeowners looking to improve energy efficiency should seek solutions that protect both the condition and value of their property.
Experts are advising anyone concerned about spray foam insulation in their home to obtain an independent survey from a RICS-registered surveyor before agreeing to any removal work.
Homeowners should also check directly with their mortgage lender, avoid unsolicited offers from removal firms and seek multiple quotes before commissioning any work.
Independent advice is available through Home Energy Scotland, while any remedial work should be carried out by fully insured contractors.
