Mortgage Capacity Report

What is a Mortgage Capacity Report?

A mortgage capacity report is a comprehensive document verified by a mortgage professional, that details the amount and type of mortgage you are likely to be eligible for after a divorce or separation. It typically includes an analysis of your financial situation, including your income, expenses, assets, and liabilities. It not only outlines how much you could borrow but also the monthly costs involved.

Here at The Mortgage Masters, we provide you with a bespoke report as required by your solicitor or barrister. We can provide an assessment of your mortgage borrowing capacity based on differing scenarios dependant on your circumstances to help ensure you receive a fair settlement.

Why do I need a Mortgage Capacity Report (MCR)?

An MCR is most commonly used in the event of divorce or separation and in most cases, is requested by the courts to help them ensure a fair financial split of existing assets. Even if you don’t think you’ll qualify for a mortgage, the other party will still require a report to confirm it. In this instance, the report would still assess your circumstances and explain the reasons why you are not eligible for a mortgage.

Why use us?

Mortgage Capacity Reports must be deemed credible by solicitors, barristers and if required, the courts. Your report will be completed by a practicing and qualified, independent mortgage broker, fully authorised by the Financial Conduct Authority (FCA).

What Information do I need to provide for the purpose of the report?

In order for your mortgage adviser to fully assess your borrowing potential, you’ll need to provide them with some key information. You should also consider various possible scenarios that may occur as a result of your separation or divorce such as the potential for changes in committed expenditure (e.g. maintenance payments or childcare costs) or even changes to income if your work situation is likely to change to support your family.

Key information requested is likely to include:

• Photo ID and proof of address

• The value of your property.

• Details of any mortgages you have including the lender, outstanding balance and remaining mortgage term.

• Details of any other assets.

• Details of all income received including any employed and self-employed income, benefits income and income derived from investments including rental income (if applicable).

• Details of any liabilities including loans and credit cards.

• Details of your monthly expenditure.

What is the cost of the report?

We charge a flat fee for a Mortgage Capacity report of £397. This includes different scenarios if specified and our attendance in court if required.

We aim to produce your report within one week of receiving documents but can potentially turn them around within 48 hours if required urgently.