Mortgage Capacity Reports
Plan your future with an accurate representation of your financial situation
How to split the family home is often one of the most contentious and upsetting decisions during divorce or separation. Whether you’re in this scenario or supporting a client through it, securing an accurate mortgage capacity report will ensure a fair division of assets, including the family home. Mortgage capacity reports are a standard requirement in divorce proceedings and mandatory for every case dealt with via the Family Court.
As the document may be used in court, it must be accurate, clear, and concise. With much hinging on the report, your best option is to use a professional mortgage adviser to compile it. As experienced mortgage brokers, we can provide an accurate and credible mortgage capacity report to support your separation negotiations. Our insight and expertise will ensure a more comprehensive and reliable report than you could get from using an online mortgage calculator or going to your bank.
Your mortgage capacity report
To prepare a mortgage capacity report, one of our qualified advisers will conduct a complex review of your finances. We’ll then research your mortgage options and compile a bespoke report. The report will indicate your maximum mortgage borrowing ability, the monthly cost and the amount of mortgage you can afford to maintain.
Mortgage capacity report options
We provide several different types of mortgage capacity reports depending on your situation.
No mortgage capacity report
This report will confirm that you cannot obtain a mortgage and outline why.
Single mortgage capacity report
This report will include a breakdown of your maximum borrowing capacity from various lenders. It will provide examples of monthly payments, terms and interest rates and assess whether the mortgage payments are sustainable.
Joint mortgage capacity report
This report includes the same information as a single mortgage capacity report but is for two parties. A joint report may be more cost-effective than two single reports.
Mortgage capacity report scenario
This report is the same as the single mortgage capacity report but is expanded to explore additional scenarios. The report highlights how changes in circumstances could affect mortgage borrowing.
To arrange a mortgage capacity report for yourself or your client, get in touch for a free, no-obligation chat with a mortgage adviser.
Mortgage Capacity Reports FAQs
What is a mortgage capacity report?
A mortgage capacity report, or mortgage capacity assessment, is a formal document outlining the amount and type of mortgage you might be eligible for after a divorce or separation. The in-depth report is based on your specific circumstances.
What is a mortgage capacity report used for?
A mortgage capacity report is used to help divide assets and property during divorce or separation. The document can be used in court to evidence your financial situation and help the judge make a fair decision about the division of assets. It can help you negotiate a financial settlement with your ex-partner and avoid disputes outside of court.
What do I need to provide for a mortgage capacity report?
Typically, the information you’ll need to provide includes the following:
- Your current income and expenditure
- Details of any assets you hold
- Your credit and employment history
- Current mortgage information, including the total amount outstanding
- A property valuation
- How the divorce will impact your finances
- Information about any dependents or childcare costs
- Any other information that may be relevant to your ability to afford a mortgage
