Independent Mortgage Capacity Report

An independent mortgage capacity report is produced by an independent mortgage broker, such as Albion Forest Mortgages for a Divorce settlement.

What is a mortgage capacity report?

A Mortgage capacity report is a detailed report into what level of mortgage you may be able to get. It will usually also include a comparison between the maximum amount you can borrow, versus the maximum monthly payment you can afford.

A Mortgage capacity report is usually used during divorce or separation proceedings, to help show how much a party can afford to borrow, or maintain monthly.

How much will it cost?

Often this will depend on the situation. Some financial advisors may even charge in the thousands for a detailed mortgage capacity report.

However, at Albion Forest we have a very simple set of fees, as detailed in the table below.

Single Mortgage Capacity Report	£299
Joint Mortgage Capacity Report	£349
Additional Scenarios	+£50

What is included in a Mortgage Capacity report?

Maximum Mortgage – This is usually the maximum mortgage amount compared with a wide range of lenders representing the current mortgage market.
Affordability – A detailed explanation of whether the maximum mortgage is affordable and if it is not affordable, what amount would be.
Example illustrations from real lenders – These are genuine illustrations from real lenders showing the costs of a mortgage. These include both the monthly costs and initial costs.

What is a mortgage capacity report used for?

Generally the report is used to prove whether someone has the funds to maintain a mortgage in a divorce settlement. This usually forms part of the solicitors case they are putting before the courts.

Generally the expert’s duty is to the courts when producing the mortgage capacity report, despite it being paid for by the client. This therefore means that whilst the person requesting the report is paying for it, they do not have influence over the resulting report, other than being able to request alternative scenarios.

Who completes the Mortgage Capacity Report and Research?

Your report should always be completed by someone that is an expert in their field, such as a Mortgage advisor. You could have a financial advisor complete the report, however they would then generally go to a mortgage advisor anyway as they tend not to be qualified in this area.

When choosing a provider for your mortgage capacity report, what should you look for?

Generally you should ensure the person creating your mortgage capacity report holds the required mortgage advice qualifications such as CeMAP or a comparable qualification.

There are other factors such as cost and speed that may factor into your choice of advisor.

When speaking to an advisor initially you should ask them:

What qualifications they have
How long the report will take
How much the report will cost
What information will be provided in the report

If they do not specialise in providing Mortgage capacity reports they may not be as well versed in creating them.

What Information Is Put On Mortgage Capacity Reports?

In order to create the report your advisor will need various information. Below are some examples of things you will need to know.

Mortgage

This is usually the most important factor of a Mortgage capacity report. Showing how much you may be able to borrow. The report will also include any outstanding mortgages you have such as Residential or Buy to let mortgages.

Investment

If you have any investments or savings these will again go into the report. This will usually be based on your latest statement available, unless you have a more accurate figure.

Income Details

This will be both your current income, and your potential income following the divorce. For example you may need to reduce hours to look after children, therefore lowering your income and the amount you can borrow.

Assets

Often your assets will not be split 50/50 in a divorce, and the advisor will need to know the potential asset splits in order to create a report.

Pension Details

Your pension pots available may factor into the divorce and therefore should be made plain to the advisor so they can factor these into their report.

Why do I need a Mortgage Capacity Assessment?

Your solicitor or the courts will need a mortgage capacity assessment in order to decide what is fair in divorce proceedings. This is because you may be entitled to more if your report shows you will need more to support the property after the divorce.

Want a rough idea of how much you can borrow?

You can use our calculator to give a rough idea of how much you can borrow. You can’t use this for the report though, as it needs to be much more precise.

Why use Albion Forest for your Mortgage Capacity Report?

When considering who to use for your mortgage capacity report, you should consider various factors as we showed above. But why choose us?

Cost	Our low cost reports give you a top quality report without the high price tag. As qualified professionals we deal with mortgages every day, so we therefore have a comprehensive knowledge of how they work.
Speed	At Albion Forest we will endeavour to get your report done quickly. Usually within 1 working day, however for more complicated cases it could take longer.
Qualifications	All our advisors have the relevant qualifications, some have a few extra just for your peace of mind! As qualified advisors we have studied for years to make sure you get the right advice.

Mortgage Capacity Report

Independent Mortgage Capacity Report

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