Mortgage Capacity Reports

Mortgage Capacity Reports

A mortgage capacity assessment report is an in-depth report detailing the amount and type of mortgage you are likely to get after a divorce or separation. Often requested by the courts to help decide the division of assets.

One of the biggest challenges around a divorce settlement is determining how to divide assets and property. Often the family home will be part of the settlement and it can be difficult to establish if either party can afford to retain it and what they could realistically afford to borrow as part of the process.


A Mortgage Capacity Report can help to clarify the situation by providing a clear and objective assessment of each person's ability to afford a mortgage. These reports are often requested by the Court to help calculate the final settlement but equally can be useful in establishing the options available to both parties in more informal divorce negotiations.


The report considers individual income, expenses, credit history and debts, and can contribute to the judgement of the Court or help informal negotiations arrive at a decision which is fair and well grounded.

Why do I Need a Mortgage Capacity Report?


Mortgage Capacity Reports are used in Family Court proceedings to help determine the level and type of mortgage you are likely to obtain post-separation. The reports are now requested by the courts as part of the process of reaching financial settlements between couples and as of 1st April 2022 are required for every case that is dealt with via Family Court proceedings.


Mortgage Capacity Reports are personalised and based on your specific and individual circumstances. We will capture your personal and financial situation to the extent required to research and provide information about the level of borrowing that you may be able to attain with a variety of lenders across the marketplace. Then we will provide a summary report of our findings. This may include an example mortgage illustration if we find that you are likely to have reasonable level of mortgage capacity. Our report and illustration will reflect a typical mortgage deal available at that time with an indication of interest rate and monthly mortgage repayment. 

The Mortgage Capacity Report will include:


  • The likely maximum amount that could be borrowed
  • Repayment method and term
  • Various interest rate types
  • Monthly mortgage costs
  • Applicable fees
  • Affordability assessment from a lender


If we determine that you are unable to obtain a mortgage, then the report will state this.

A Mortgage Capacity Report is authoritative enough to be used in Court proceedings and is much more than a simple mortgage calculation. It is an impartial report, produced by a qualified mortgage professional to demonstrate your borrowing capacity from the whole of the mortgage market.


We can offer appointments over videocall, telephone or in person at our Tamworth office to discuss your situation. Contact us with your enquiry.

Services Offered

Standard



For cases where your financial situation is straightforward; a single person report issued about your potential Mortgage Capacity




£299

Complex


For cases where your financial situation is complex – for example, debt consolidation or borrowing extends into retirement or the report is for more than one person on the mortgage; a report issued about your potential Mortgage Capacity


£499

Notes:


We are authorised and regulated by the Financial Conduct Authority (FCA) in the provision of mortgage advice. However, please note that solely advising on your borrowing capacity in relation to court proceedings is not regulated by the Financial Conduct Authority. Unregulated activities will not benefit from the protection of the Financial Ombudsman Service or the Financial Services Compensation Scheme.


Please read our Mortgage Capacity Report Disclosure Document which provides important information about our services.

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