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Mortgage Capacity Assessments

The Mortgage Capacity Report offers a thorough analysis of an individual or couple’s borrowing capabilities. Primarily used in divorce and separation, this assessment serves as a valuable tool for dispute resolution.
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A Comprehensive Report

 

A Mortgage Capacity Report, also known as a Mortgage Capacity Assessment, is a crucial document that outlines the potential amount and type of mortgage you may be eligible for after a divorce or separation. This comprehensive report is tailored to your specific circumstances, providing an in-depth analysis based on factual and certifiable information. A mortgage capacity report is used for:

· Establishing borrowing potential in the event of divorce or separation.
· Accepted by the courts. 

Various options can be presented

· Single scenario.
· Two scenarios.
· Additional scenarios.

Your standard reports include one scenario, but if additional scenarios are needed, you can request them as part of the report. We may recommend extra scenarios based on specific factors in your divorce or separation proceedings, such as:

· Child Custody.
· Maintenance Payments.
· Benefit Payments.
· Childcare Costs.
· Working Arrangements.

While we can’t account for every possible outcome, collaborating with your solicitor and your mortgage adviser allows us to focus on likely scenarios you may encounter.

What’s Included in the Report?

The Mortgage Capacity Report is carefully compiled by a qualified mortgage adviser, using key information, including:

Your Income:

Accurate details of your income sources.

Current Debts and Financial Commitments:

A comprehensive overview of your existing debts and financial obligations.

 

Outstanding Mortgage:

Details about any outstanding mortgage on the property.

Property Value and Equity:

An evaluation of your property’s current market value and the equity it holds.

 

Savings and Investments:

Information on your savings and investment portfolio.

Children and Dependants:

Factors such as childcare costs and maintenance payments are considered.

 

How the Mortgage Capacity report is used

Mortgage Capacity Reports serve several crucial purposes:

Divorce Proceedings

Solicitors often request these reports to assist their clients in understanding their ability to afford a mortgage independently.

Court Evidence

Your solicitor can present the report as evidence in court during the financial settlement process. It offers a concise appraisal of your borrowing capacity, aiding the court in making fair decisions.

Financial Settlement

The report becomes a valuable tool during asset and property division, helping individuals make informed decisions about the family home. It can showcase the viability of transferring a joint mortgage into one person’s name.

Negotiations

The report facilitates negotiations with your partner’s legal representative. By providing an objective assessment of your mortgage affordability, it helps in reaching mutually beneficial agreements and avoiding disputes.
Mortgage Capacity Reports from Evolution Private Finance Ltd are professionally prepared by fully qualified mortgage advisers. These reports are often shared between solicitors and may be used in court proceedings.

What do you need to prepare

To create an accurate Mortgage Capacity Report, you’ll need to provide detailed information, including:

  1. Mortgage Amount:
  • Obtain outstanding balances of current residential and buy-to-let mortgages.
  • Contact current mortgage providers or check online banking.
  • Seek advice from mortgage brokers if needed.
  1. Property Value:
  • Determine the value of your property, including marital home and buy-to-let properties.
  • Use property websites for a rough estimate (e.g., zoopla.co.uk).
  • Get a professional valuation from local estate agents with a proven track record.
  1. Income Details:
  • Provide comprehensive details of all earned income.
  • Enable the creation of capacity report and assess scenarios for potential changes in working hours post-divorce.
  1. Liabilities / Expenditure:
  • Understand monthly commitments, including debts and everyday expenses.
  • Consider items like food, fuel, council tax, utilities, etc.
  • Lenders factor in these commitments when evaluating loan capacity.

Proof of identity, including a valid passport, driver’s license, and recent utility bill or bank statement, is also required.

How To Order

 

Choose the Right Report:

Visit our website, select the report that fits your circumstances, or call 020 3371 1643 for assistance.

Schedule a Free Video Consultation:

Book a free video consultation with our team to discuss your scenario. If you decide to proceed, we’ll move to the next step.

Receive and Confirm Invoice:

After the consultation, we’ll send an invoice for the selected report. Review and confirm your decision to proceed with the payment.

Secure Report Delivery:

Once payment is received, expect your Mortgage Capacity Report to be securely delivered to you and your chosen solicitor within 5-10 working days.

A Mortgage Capacity Report is an invaluable tool during divorce proceedings, providing a clear understanding of your mortgage options and financial capabilities. For a thorough and accurate assessment tailored to your situation, speak to us at Evolution Private Finance Ltd. Book a free consultation to explore your mortgage capacity and make informed decisions about your financial future.