Several major lenders are still not willing to issue mortgages for homes fitted with spray foam insulation, it has emerged.

An investigation by the BBC found that five of the biggest banks and building societies do not issue home loans if the polyurethane is present.

Refused

The TSB Bank, Skipton Building Society, Co-operative Bank, Principality and equity release lender Aviva, all confirmed they refused mortgages due to spray foam.

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

Also, equity release provider More 2 Life said it will only lend on properties with spray foam where it was fitted as part of an authorised new build and has the documents to prove it.

Case-by-case

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

Surveyors often recommend the foam is removed before a property is sold.

Some firms charge thousands for spray foam installation, and fail to use it properly causing damp issues in roofs, even though a new code of practice was issued.

And there have been reports of homeowners being targeted by dodgy spray foam installers.

Cases rocketing

Earlier this year, The Property Care Association announced it had created a new type of membership to offer homeowners access to specialists who can help them rectify problems.

Nationwide warned previously that cases of homeowners with problems caused by such insulation were rocketing. It was blamed for around 250,000 homes being ineligible for mortgages.

The lender said people were more vulnerable to rogue installers as they seek to make their homes more energy efficient and save money.