Mortgage Capacity Reports
As mortgage experts, we’re here to help you when facing a separation
The mortgage capacity assessment report is a detailed investigation into the level of mortgage a person is likely to be successful in obtaining based on your specific circumstances. The assessment is more reliable than a visit to your bank or by using one of the many online mortgage capacity calculators available.
The assessment is often required during divorce proceedings when proof of mortgage borrowing is required. Your mortgage capacity assessment needs to be credible, realistic, and accurate and will help you in a number of ways.
Find out how much you can borrow with Prestige mortgage Solutions. Call us on 0330 135 8047 to talk with our experienced team or book an appointment for a time convenient to you.
What is a mortgage capacity report and the benefits of obtaining one?
The report is a detailed investigation into an individual or couples mortgage borrowing capabilities. The assessment can be used for any type of dispute resolution, but predominantly for divorce and separation.
- It can be used by the Court to help the Judge make a decision on finances.
- It can be used by the other party (ex-partner and/or their solicitors).
- From the Legal Representatives perspective it can be considered “Best Practice” in the way mortgage capacity is demonstrated.
- Each mortgage capacity assessment is different to reflect the client’s/individuals specific circumstances.
- It helps you/your client make accurate financial plans for the future.
- Settles disputes between divorcing parties
The reports are presented in a manner which are suitable to use at court, but can be equally beneficial outside the courtroom and for mediation purposes.
Priorities can differ with each divorce however finances are often at the top of the worry list, and whether circumstances within the marriage are in good shape or bad shape understanding and agreeing on suitable living arrangements is often a big part of the divorce challenge.
Deciding who should live where, often depends on who can afford it the most, which in turn can lead to further delays, frustrations, and animosity between divorcees.
The reports which we produce are designed to provide everything there is to know about current or future mortgage borrowing capabilities, whilst ensuring the results are accurate and reliable enough to help negotiate the right settlement.
An assessment can be based on any financial circumstances, whether they are a current arrangement or a potential future arrangement. This can really help to highlight how certain financial decisions or disputes will affect an individual’s ability to buy a new property or retain their current home. Circumstances considered include but are not restricted to, maintenance payments, share assets, deposit or repayment of debts, changes to earnings following divorce for example benefit entitlement or the number of hours worked. You can gain more detail from our Blog how these various factors can really make a difference to mortgag
In each scenario Your Mortgage Capacity Assessment will include:
- The MAXIMUM mortgage borrowing amount
- Examples of costs, monthly payments, any fees associated with taking out the mortgage including potential Stamp duty land tax
- Full assessment of all outgoings
- Confirmation whether the maximum borrowing is affordable, and if not we will detail The AFFORDABLE borrowing amount based on monthly income/expenditure
- Any other important information from our research, for example if you receive child benefit for children reaching age where this may stop, Debt issues which may affect your lending decisions, bad credit or other property retentions. For more information on this area you can visit our Blog.
The person behind the Assessments:
Our Mortgage Capacity Experts are highly qualified advisers with plenty of experience in the world of mortgage advice.
Our advisers have at least 17 years in the industry with a wide range of lender criteria and product knowledge.
We are not tied to one particular lender and have access to a comprehensive range of lenders on the market both high street and specialist.
All advisers hold the relevant and most up to date qualifications and we are fully regulated by the FCA
What information will I need to provide?
You will likely need to provide the following information:
- Your current income, including salary, bonuses, commissions, and any other sources of income.
- Your expenses, including rent or mortgage payments, utilities, credit card payments, car payments, and any other regular expenses.
- Your credit history, including your credit score and any outstanding debts or loans.
- Your employment history, including current job and previous employment.
- Your assets, including any property, investments, or savings you may have.
- Your liabilities, including any outstanding debts or loans.
- Information about any dependants, such as children or elderly parents, who may impact your ability to afford a mortgage.
- Any other information that may be relevant to your ability to afford a mortgage, such as upcoming large expenses or changes in your financial situation.
It’s important to be as honest and accurate as possible when providing this information, as a Mortgage Capacity Report is used to make important decisions about your finances and ability to afford a mortgage.
Why do I need a Mortgage Capacity Assessment?
The Mortgage Capacity Report is commonly used during divorce or separations. In a lot of cases, this is requested by the courts to decide on financial splits of existing assets. Generally a solicitor requests this on behalf of their client.
Your mortgage borrowing assessment needs to be credible, realistic and accurate and will help you in a number of ways:
- The mortgage capacity report gives your financial settlement greater creditability when dealing with your solicitor and/or court staff including the judge presiding over your family court proceedings. It can be used by the other party (ex-partner and/or their solicitors) to help the divorce settlement
- From the Legal Representatives perspective it can be considered “Best Practice” in the way mortgage capacity is demonstrated.
- The mortgage capacity report does not recommend a specific lender and product, however, it will provide example illustrations providing current market interest rates, the monthly Repayments and will demonstrate all other likely mortgage costs.
- Each mortgage capacity assessment is different to reflect the your personal individual circumstances.
- If you require your own as well as your partners mortgage capacity for divorce purposes then we can be instructed on a joint basis. This will provide you with two reports detailing both parties mortgage capacity.
- An independent mortgage capacity report can often paint a far more accurate and unbiased picture rather than relying on the word of one lender where all of the terms of borrowing are not clear and they can only provide lending information based on their own product
- We can also provide details of your mortgage capacity based on any number of financial scenarios. If you require several scenarios based on different situations, this is also fine.
- The assessment is more reliable than a visit to your bank or by using one of the many online mortgage capacity calculators available.
- Whilst going direct to mortgage providers can provide that specific lender affordability details, a mortgage is not secure until such time as a full mortgage offer has been made. As an independent mortgage broker we will be able to give clients advice as to the likelihood of being able to obtain a full mortgage offer and advise which lenders are more suited to your individual needs.
The Courts at a first hearing will usually direct the divorcing couple to obtain sales particulars for properties that they believe suitable for themselves, as well as properties they believe suitable for their spouse. In addition, the Court will also require evidence of the mortgage capacity the respective parties may have. The parties are usually informed to serve evidence of mortgage raising capacity 8 weeks before the Financial Dispute Resolution Hearing (FDR) in the form of a brokers certificate setting out:
- the maximum mortgage available,
- the income and outgoings upon which the calculations are based,
- the monthly repayments upon the stated mortgage capacity.
There is permission for each party to file and serve mortgage raising capacity for the other within 14 days if they dispute that which has been provided.
The amount that you can get from multiple lenders can change dramatically. Different lenders have different factors that are taken into consideration and therefore approaching one lender for a mortgage figure doesn’t provide a true reflection of the market based on your circumstances
Our report is more thorough than just checking your bank. We’ll check with several lenders and ensure the figures entered on the affordability calculators are correct.
We’ll be doing a short questionnaire to get your needs down on paper. The Assessment Letter is given to you and only you. Unless you have told us they should be sent elsewhere.
There is some key information that you need to know to ensure that your report can be started.
There is then the potential different scenarios that you should consider, based on maintenance payments, childcare and your current work situation (if that needs to change to support your family).
You’ll need to know the outstanding balance of any mortgages you currently have – residential and buy to let mortgages must be included.
You might already know this information but the easiest way to gather this is to ring your current mortgage provider(s) or log on to your online banking. If you require any further mortgage advice, our mortgage brokers will be able to give you financial advice on this.
Understanding the value of your property is critical, in most cases the equity in your marital home and buy to let properties is your biggest asset.
You can get a rough guide on property prices by using helpful tools on property websites like zoopla.co.uk.
We would also recommend getting your property valued by local estate agents who has a proven track record within your area.
We would ask you to understand all earned income that you receive.
This will allow us to build the capacity report and potential scenarios if you had to reduce or increase your working hours post-divorce and how this would affect your potential mortgage borrowing in the future.
Liabilities / Expenditure
We would ask that you have a good understanding of your monthly commitments, from debts to everyday spending like food, fuel, and every month bills council tax/utilities etc as lenders will take these into consideration when looking at your loan capacity.
If you are unsure of your debts held or your current credit status you can complete a request for your Credit File HERE
What is a Mortgage Capacity Report Scenario?
our reports will include one scenario as standard however should you need further scenarios completed this can be requested as part of the report. Your solicitor may decide you would like additional scenarios based on variants within the divorce or separation proceedings such as:
- Child Custody
- Maintenance Payments
- Benefit Payments
- Child Care Costs
- Working Arrangements
There are so many potential scenarios that could happen when divorce/separations take place and won’t need a scenario for every possible outcome, However working with your solicitor and your advisor we will be able to look at the likely scenarios that you could be faced with.
To speak to a qualified mortgage capacity report expert in more detail about your Mortgage Capacity Assessment – Contact the team at on 0330 135 8047 or use our online appointment booking system.
Mortgage Capacity Reports are not part of the PRIMIS offering and are offered in our own right. PRIMIS Mortgage Network accepts no responsibility for this aspect of our business. Mortgage Capacity Reports are not regulated by the Financial Conduct Authority.
Divorce settlements can take quite a while to conclude, particularly if they involve going to court.
As a whole of market mortgage broker we are well placed to help you after the financial considerations have been agreed.
If you are looking to buy your partner out of the mortgage, then this will involve a transfer of equity remortgage. This is very similar to a normal remortgage but at the same time you will change who owns the home.
Or, you may be moving home, and need a residential mortgage to purchase your new property.
Whatever you need, we will be here to help.
Contact us for your Mortgage Capacity Report & find out your mortgage borrowing!
If you would like advice from a fully regulated, qualified mortgage advisor that can talk to you about your situation and give you your options around Mortgage Capacity assessment Reports, please get in touch on 0330 135 8047 or book an appointment here
If you require an express service to find your maximum borrowing, contact us during our standard office hours and we will get this issued in a timely manner.
Please be aware that rates and maximum affordability figures are subject to change by lenders. Unless requested we will not formally apply to any lenders, as such any information provided is subject to full credit checks, documentation and lender criteria and eligibility. A MCR in no way should be treated as a ‘Mortgage Promise’.
Mortgage Capacity Reports are not part of the PRIMIS Mortgage Network offering and are offered in our own right. PRIMIS Mortgage Network accept no responsibility for this aspect of our business. Mortgage Capacity Reports are not regulated by the Financial Conduct Authority.