Mortgage Capacity Assessment Report
A Mortgage Capacity Report is a detailed analysis of the level of mortgage you are likely to obtain after divorce or separation. Every report is different, as are every client’s circumstances and objectives.
Find out how much you can borrow with Alexander Southwell Mortgage Services in Southampton, Hampshire. Call us on 03300 432428 to talk with our experienced life insurance team.
Mortgage Capacity Report
A Mortgage Capacity report is a document showing how much money a person might be able to borrow for a mortgage based on a the clients specific circumstances.
The amount that you can get from multiple lenders can change dramatically.
The letter 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.
Who completes the Mortgage Capacity Report and Research?
The mortgage capacity report needs to be deemed as credible. At Alexander Southwell Mortgage Services we are an experienced mortgage brokerage with the correct qualifications in place.
This will ensure that your mortgage capacity assessment is deemed acceptable by solicitors and the courts.
Why do I need a Mortgage Capacity Assessment?
The Mortgage Capacity Report is commonly used during divorce or separations. In most cases, this is requested by the courts to do decide on financial splits of existing assets.
This report will not only give you an element of peace of mind and allow you to plan your future.
It will be able to detail different outcomes based on varying financial splits.
Your mortgage borrowing assessment needs to be credible, realistic and accurate and will help you in a number of ways:
- The assessment is more reliable than a visit to your bank or by using one of the many online mortgage capacity calculators available. Used by the Court to help the Judge make a decision on finances.
- The mortgage capacity report also 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 comparing current Fixed interest rates against Variable 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 one report detailing both parties mortgage capacity for one fee. The detailed investigation settles disputes between divorcing parties.
- We can also provide details of your mortgage capacity based on any number of financial situations.
The mortgage capacity assessment is a detailed investigation into what level of mortgage borrowing you are likely to be successful in obtaining.
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).
What Information Is Put On Mortgage Capacity Reports?
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 portfolio. If you require any further mortgage advice, our mortgage brokers will be able to give you independent financial advice on this.
Understanding the value of your property is critical in most cases the equity in their marital home and buy to let properties is their 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.
When building your capacity report your investments & savings come into consideration.
Not everyone has investments & savings but if you do an up to date value or statement is beneficial when building a standard mortgage capacity assessment.
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.
Matrimonial Assets Potential Split
This is a question for you & your solicitor. Depending on what stage the divorce process is at.
Not that it will be set in stone but you and your solicitor will normally have a rough idea of how the assets are going to split.
Sometimes this is not always 50/50 as a lot of people imagine and is completely dependent on your individual circumstances.
This is a joint total of pensions and the current values underpin many separation cases and pension is split as part of the financial settlement.
This is something your solicitor will advise you on in more detail. Ringing your pension provider or HR department will give you the details of these funds and the values we need to complete your mortgage capacity assessment.
Contact Us To Gather Your Mortgage Capacity Report & find out your mortgage borrowing!
If your current financial circumstances changes following the proceedings (an increase/decrease in maintenance income, benefits received, childcare costs etc) then we can provide a letter to confirm how much you can obtain in additional scenarios.
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.