If you’re just starting the journey of divorce, you might be overwhelmed with the paperwork and processes ahead of you.
Firstly, we are here to help you navigate the finances when it comes to your mortgage – so don’t panic, just pick up the phone and we’ll talk you through the process step by step as we know how worrying and overwhelming this can be.
Secondly, you might be hearing a lot about changes to Mortgage Capacity Report requirements made earlier this year. Below is a simple break-down of what you need to know.
So, what exactly is a mortgage capacity report?
A mortgage capacity report is an in-depth report detailing the amount and type of mortgage you are likely to get after a divorce or separation. Many clients use the report as a starting point for discussions regarding financial settlements including as part of DIY divorce kits. It can also be very useful for solicitors in family court proceedings and can often have a direct impact on any settlement.
What are the benefits of obtaining one?
As mentioned above, Mortgage Capacity Reports are very useful in family court proceedings and often have a direct impact on any settlement. It will also add greater creditability to your financial settlement when dealing with your solicitor.
The report will assess particular lenders’ criteria & products and will determine what you are likely to be offered. This will allow you to compare current interest rates and see the likely monthly repayments and additional costs you would be looking at post divorce/separation. This is really helpful for your own peace of mind as it will help you plan for your next chapter and help you make the decisions you’re faced with as part of the divorce.
Whereas previously, Mortgage Capacity Reports were advantageous for the reasons we’ve just outlined, in March this year, it became a legal requirement to obtain a mortgage capacity report by the time court proceedings commence.
As qualified ‘whole of market’ mortgage brokers, here at BMI we can provide you with a comprehensive mortgage capacity assessment report which will not only be accepted by solicitors and the courts but will also give you peace of mind. It is a personal and bespoke report based on your circumstances and the nature of your financial separation. This is completely dependent on your own personal circumstances and the complexity of your separation. There are many factors that can affect the outcomes of the reports and every potential scenario should be covered to ensure that you get a fair settlement from your separation.
Most importantly, your mortgage capacity report needs to be credible, realistic and accurate. This way it can:
- Be used by the Court to help the Judge make a decision on finances.
- Be used by the other party (ex-partner and/or their solicitors).
- From the Legal Representatives perspective it can be considered “Best Practice” in the way mortgage capacity is demonstrated.
- Reflect your specific circumstances.
- Help you make accurate financial plans for the future.
- Settle disputes between the divorcing parties.
We know that this can be a very stressful time, so our Mortgage Capacity Report will help you understand the expectations and limitations of your borrowing ability, in a clearly laid out and detailed report. Get in touch today to speak to one of our expert Mortgage Capacity Report Advisers.
