BMI Money specialises in
Mortgage Capacity Reports
If you have been requested to provide a Mortgage Capacity Report for a divorce settlement, you’re not alone. Thousands of couples parting ways are now required to provide a report to help assess the best way forward and how to divide assets. The report helps all parties understand the borrowing power of one another and gives the judge, solicitor or mediator a fair assumption of possible future borrowing.
The report looks to save time during the divorce process and therefore help you plan ahead and most importantly helps you achieve the divorce settlement you need. Our capacity reports are recommended by Legal firms across the country who have helped us compile our reports, we take into consideration current and future income or liabilities such as child maintenance or an increase in child care fees.
As standard we provide an additional scenario at no additional cost, this could be clear debts, increase in child maintenance or for a longer term.
We Are Committed to helping our clients navigate a difficult and uncertain financial future.
what is a mortgage capacity report?
A Mortgage Capacity Report is an essential document that evaluates your financial position, helping you understand your potential borrowing power. It considers various factors such as your income, outgoings, dependents, maintenance, benefits, age and the current lending criteria of banks and building societies. With our report, you’ll have a clear, realistic view of how much you can borrow and what mortgage options are available to you.
Why a Bright Money mortgage capacity report?
We understand that every client’s situation is unique, and that’s why our reports are tailored to your specific needs:
1
Experienced Professionals
Our team has decades of experience in the mortgage industry, our advisers are CeMAP qualified and will be currently advising.
2
Quick Turnaround
Time is often of the essence. We deliver your comprehensive report within just 24-48 hours of receiving all details, ensuring you can move forward with confidence.
3
Tailored to Your Needs
Our Capacity reports are personalised to reflect your unique financial situation. We offer additional scenarios to help understand the best way forward
4
Trusted by Legal Professionals
Our Capacity reports are recognised and trusted by solicitors and courts, making them invaluable during legal proceedings like divorce settlements.
5
Free mortgage Advice
once you have done a capacity report with your adviser, they will not charge you further broker fees.
Who needs a mortgage capacity report?
Understanding your borrowing capacity is vital in many situations:
1
A Mediator
There might be a clear answer without the need to incur further costs
2
a lawyer
Can use this as a tool for negotiating when representing you
3
you
The mortgage capacity report can help you understand whats realistic moving forward. The adviser will be able to give tips on how to increase your borrowing power to get a more suitable house
4
the judge
If the case comes to court, the judge will be looking to ensure what’s decided regarding the splitting of assets is reasonable and that the mortgage recommended is obtainable.
Mortgage capacity reports in detail
Our detailed report covers every aspect of your financial situation, providing a comprehensive view of your borrowing power
Income analysis
We assess all sources of current and future income, including salary, bonuses, and any additional revenue streams.
credit assessment
Your credit history will need to be understood with any missed payments being declared – it might be worth getting a credit report ready in advance.
Affordability check
We evaluate your expenses and liabilities to ensure your mortgage is affordable and sustainable.
lender matching criteria
We compare your financial profile against various lender criteria, helping you identify the best mortgage options available.
Our specialist ‘Mortgage Capacity’ experts will conduct a complex review of your current finances
Alongside the data, we offer expert advice on your next steps, tailored to your specific circumstances and goals.
How It Works : Simple and Straightforward
Getting your Mortgage Capacity Report is easy:
1
Initial Consultation
We begin with a free, no-obligation consultation to understand your needs and gather the necessary financial details.
2
Detailed Assessment
Our experts analyse your financial data, considering all relevant factors to determine your mortgage borrowing capacity.
3
Report Delivery
Within a 24 - 48 hours, you’ll receive a comprehensive report, complete with detailed analysis and personalised advice.
4
ongoing support
Our mortgage advisers are here to answer any questions and guide you through the next steps, whether you’re dealing with a divorce, planning to remortgage, or making a new purchase.
pricing
£149 for a ‘no mortgage’ capacity report. This is a report that will confirm you are unable to get a mortgage.
£299 for a standard mortgage capacity report that will confirm the amount you are likely to be able to borrow.
£549 for a joint mortgage capacity report that will confirm the amount you can both borrow separately.
If You Need A Mortgage After Your Divorce
WE WILL NOT CHARGE A BROKER FEE
Following your divorce, if you then need a mortgage we can use the information we gathered for the report to research, recommend and implement your new mortgage.
We will search the whole market to find you the most suitable mortgage and our team of financial advisers can also help you with your wider financial planning needs in the next chapter of your life.
how are mortgage capacity reports used?
Here are the specific areas of family law where a mortgage capacity report might be necessary
Divorce and separation
Property division:
When determining the fair distribution of assets, including
a property, the court may need to assess the parties' ability to maintain or
acquire a mortgage.
Spousal maintenance:
The court may consider the parties' financial
circumstances, including their mortgage obligations, when determining
spousal maintenance payments.
child custody and support
Child support:
The court may consider the parties' income and expenses,
including mortgage payments, when calculating child support.
Child custody:
In some cases, the court may consider the stability of the
home environment, which can be influenced by mortgage affordability.
Financial disputes between unmarried couples
Cohabitation agreements:
If a cohabitation agreement includes provisions
related to property ownership or financial support, a mortgage capacity report
may be necessary to assess the parties' ability to fulfill those obligations.
Our specialist ‘Mortgage Capacity’ experts will conduct a complex review of your current finances
In essence, any family law matter involving the financial aspects of a relationship, particularly those related to property, could require a mortgage capacity report.
meet our expert MCR team
Darren Meehan
Position
Darren likes DIY in Spain .. etc..
Celementine Palmer
Position
Clem is great with Powerpoint presentations .. etc ..
Other team member
Position
Interesting facts go here
Frequently Asked Mortgage Capacity Report Questions
Typically, you’ll receive your Mortgage Capacity Report within 1-2 business days after your initial consultation.
We’ll need details about your income, expenses, existing debts, and any assets you may have.
No, our report is designed to provide a general estimate, each lender will have their own criteria and max loan available for each client.
It’s a good idea to update your report if there are significant changes in your financial situation,
such as a new job, increased debt, or changes in the housing market.
Not unless we re asked to. We would normally not use other income, a lender might be unless asked we typically wouldn’t use this.
Tyically not unless requested. If we don’t take partners wiutation into consideration we cannot be
certain their isnt income to cover the children .
Typically we will od the report until 67 next birthday, whilst all lenders will look up to 70 next birthday and more going to 75, we use state retirement age unless requested otherwise.
a PATH TO peace of mind
Is a mortgage capacity report always required?
Sometimes you just need to know what is possible or not post-divorce and obtaining a Mortgage Capacity Report may not always be required. Depending on your circumstances, we may be able to just provide you with a letter of affordability or an agreement in principle that can tell you how much you will be able to afford. If you are just exploring your options, this may be a more suitable outcome for you than obtaining a Mortgage Capacity Report.
It’s important to note that these other options may not stack up in court. A mortgage agreement in principle is not a guarantee, it is a guideline to how much you can borrow.
We are dedicated to providing individuals and family lawyers with details of mortgage borrowing for divorce purposes. Please note, this is not a regulated activity.
Case Study
Navigating Divorce with a Mortgage Capacity Report
Background
Jack and Sophie were going through a divorce, and Sophie needed to know her borrowing capacity to negotiate a fair settlement.
Challenge
Sophie was unsure of how much she could borrow on her own, which complicated the division of assets.
Solution
Our Mortgage Capacity Report provided a detailed assessment of Sophie's and Jack’s financial situation, helping her understand her borrowing limits and negotiate a settlement that allowed her to purchase a new home.
Outcome
Sophie successfully navigated the divorce process with the confidence that she could afford a new property, thanks to the clarity provided by our report.
Why Trust Us?
Bright Money have helped countless clients navigate the mortgage process with ease. Our commitment to transparency, expert advice, and personalised service ensures you get the best possible guidance every step of the way.
Get Started Today
Take control of your financial future with a Mortgage Capacity Report tailored just for you. Contact us today to schedule your free consultation and start planning your next move with confidence.
Further Resources
Government and Legal Resources:
1. UK Government’s Divorce and Separation Guidance:
– Divorce and Separation: Guide: https://www.gov.uk/divorce
2. MoneyHelper (formerly Money Advice Service):
A government-backed service offering advice on managing money, including mortgages and financial planning during divorce.
– MoneyHelper: Managing Money After Divorce:
https://www.moneyhelper.org.uk/en/family-and-care/divorce-and-separation/managing-money-and-divorce-or-separation
Mortgage and Financial Advice:
1. Citizens Advice:
A well-respected resource for financial advice, including mortgage information and navigating financial issues during divorce or separation.
– Citizens Advice: Mortgages: https://www.citizensadvice.org.uk/debt-and-money/mortgages/
2. Which? Mortgage Guides:
Guides from Which? on understanding mortgage options, particularly useful for first-time buyers and those remortgaging.
– Which? Guide to Mortgages: https://www.which.co.uk/money/mortgages-and-property/mortgages
Legal and Financial Associations:
1. The Law Society:
Information on finding a solicitor, particularly useful for users who might need legal advice regarding divorce and property.
– The Law Society: Find a Solicitor: https://solicitors.lawsociety.org.uk/
2. Financial Conduct Authority (FCA):
Guidance on dealing with financial firms and understanding your rights as a consumer.
– FCA: Protecting Yourself: https://www.fca.org.uk/consumers
Credit Score and Financial Health:
1. Experian UK:
Users can check their credit score for free, which is a critical component of a Mortgage Capacity Report.
– Experian UK: Free Credit Score: https://www.experian.co.uk/consumer/credit-score.html
2. Equifax UK:
Another resource for checking credit reports, which can impact mortgage capacity.
– Equifax UK: https://www.equifax.co.uk/
Divorce and Family Law Resources:
1. Resolution – First for Family Law:
Offers information and resources for those going through a divorce, including finding a solicitor who specialises in family law.
– Resolution: Family Law: https://resolution.org.uk/
2. Relate:
A UK charity offering support and counselling for those dealing with relationship issues, including divorce.
– Relate: Divorce and Separation: https://www.relate.org.uk/relationship-help/help-separation-and-divorce
