Do You Need a Mortgage Capacity Report?
Are you a solicitor or barrister in need of a mortgage capacity report? Officially known as a Mortgage Capacity Assessment, this structured report may be requested during the Family Court process. It needs to include detailed financial information on your client’s income, outgoings, and debts to determine affordability. I’ve provided answers to common questions if you need to obtain this report for a divorce or financial settlement.
How to Arrange a Mortgage Capacity Assessment
Firstly, it’s always recommended to use a qualified mortgage adviser with the experience and expertise to produce a Mortgage Capacity Assessment. The most common use of this report is to support divorce or financial settlement proceedings. As a crucial part of the Family Court process, it provides a structured assessment of someone’s potential borrowing capacity.
A mortgage capacity report can be used in First Appointment hearings, Financial Dispute Resolution (FDR) hearings, and Joint expert (SJE) instructions. It can also be used when circumstances have changed for Final hearings. However, as the report will be scrutinised at every stage of the process, it’s essential the information is clear and accurate.
From your clients’ perspective, this report offers reassurance that the court can reach a fair decision. Based on net income minus outgoings, it calculates their disposable income to assess their affordability for mortgage repayments. When calculating affordable borrowing levels, it’s essential that all of your client’s expenses are included for an accurate picture.
Typical mortgage eligibility and affordability questions include:
- Do you live in the UK for at least 6 months a year?
- What are your gross earnings each month?
- Do you receive a salary and any other forms of income?
- What currency are you paid in?
- Are you self-employed?
It’s important that the report covers not just how much someone is able to borrow, but the reasons for borrowing to inform legal proceedings. It should include people’s income and outgoings, existing and proposed debts, current lending criteria, and assumptions around affordability. In some cases, the report might determine there is no mortgage capacity.
How Much Does a Mortgage Capacity Report Cost?
When you are looking to arrange a mortgage capacity report, it’s important to use a professional mortgage adviser who offers fixed fees. When it comes to my own fees, an indicative Mortgage Capacity Assessment is £149 per person. A single FDR Mortgage Capacity Assessment is £399 (£250 if level 1 is complete). If you need a Joint FDR Mortgage Capacity Assessment, this would be £699 (£400 if level 1 is complete).
For more information on my full range of services and fees, see my Mortgage Capacity Assessment page.
Arrange a Mortgage Capacity Assessment with Ann Evans
If you’re a solicitor who needs a Mortgage Capacity Assessment, I’m here to help, and I will explain the applicable fee before work begins. The report can include affordability calculations, repayment examples and interest-rate comparisons, but it does not guarantee court acceptance or a lender decision. Where appropriate, I can also provide a Decision in Principle.
To arrange a Mortgage Capacity Assessment, book a call today.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
