Mortgage Capacity Report
Here at Bright Money Independent, we can provide you with a bespoke mortgage capacity report to aid you through the difficult time of divorce proceedings, taking some of the weight off the ambiguity of exactly what your future could look like. And the best part…we could save you thousands in legal fees!
We can provide you with a comprehensive report which will be accepted by solicitors and the Courts and will also give you peace of mind for how much you can borrow yourself.
So, what exactly is a Mortgage Capacity Report?
A Mortgage Capacity Report is a very important and useful document used in Family Court proceedings to help determine the level and type of mortgage you are likely to obtain post-separation. The reports are now requested by the courts as part of the process of reaching financial settlements between couples and as of 1st April 2022 are required for every case that is dealt with via Family Court proceedings. They are also used to compare the level of maximum borrowing with the amount of mortgage you can afford to maintain and is a bespoke report based on your circumstances and the nature of your financial separation. Many clients use the report as a starting point for their discussions regarding financial settlements.
Benefits of instructing a Mortgage Capacity Report for divorce purposes:
- Adds weight to your demands on the ‘marital pot’.
- Endures over the course of divorce proceedings.
- Provides fairness and clarity where mortgage options are concerned.
- Our expert documents are able to be used in Court.
Who produces the report?
Our mortgage capacity reports will always be professionally prepared by a fully qualified, highly experienced mortgage broker.
The document is often shared between solicitors and may even be used in court proceedings. For these reasons it is important that the report is accurate, clear and concise, and drawn up by an FCA qualified broker.
Our specialist ‘Mortgage Capacity’ experts will conducting a complex review of your current finances, including savings, investments, debts and earnings. If you have children then childcare will be considered within the assessment. We will then research your mortgage options and include this information in the report.
Why do I need to use an Independent Mortgage Adviser?
Because your report will be used by your Solicitor and or the Courts to help make assessments with regard to future finances. With such important financial decisions at stake, we believe it is essential you employ a professional and experienced company like BMI in order to produce your report. Within the assessment report we will be able to give a clear indication of a client’s maximum mortgage borrowing ability, monthly cost and more importantly the amount of mortgage they can actually afford to maintain
If you need a mortgage after your divorce
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.
£199 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.
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.
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