Mortgage Capacity Reports
We can produce a formal mortgage capacity report to use, for example, in court proceedings if going through a divorce.
Overview Of Mortgage Capacity Reports
The report provides a maximum mortgage affordability figure from a panel of 45 UK lenders which are representative of the mortgage market in the UK at the time of its production.
It is intended to be an indication of the maximum figure that you could potentially borrow and is neither a decision in principle nor a guarantee that you will be able to arrange a mortgage from any of the lenders mentioned herein.
The figures were taken from the online affordability calculators of the lenders mentioned in the report. These are a range of UK lenders and include some specialist lenders which will be pertinent for clients who have issues with their credit record.
General Assumptions
The following factors will be taken into account by the lenders who provided a maximum borrowing figure:-
- Your age,
- The term of the mortgage,
- Income (inc Child Benefit),
- Outgoings,
- Dependents,
- Your general credit profile.
It is assumed that your property will be considered acceptable security for mortgage purposes by the chosen lender should you apply for the mortgage.
Your Circumstances
We will undertake a full assessment of your income, outgoings, personal circumstances when producing the report. This will include your ongoing dependents and your age to assess the likely term of any mortgage as this can have an impact on amount you can borrow.
Important things to note
This report is based on affordability calculations at the time the report was produced and these can vary over time. There is no guarantee that you will be able to borrow this much and the report is merely an indication of the maximum sum you could potentially borrow.
The results achieved have been based on the information provided by yourself in the course of our discussions. Any inaccuracies or omission in the information provided by yourself, can lead to inaccuracies in the results obtained so it is very important that you disclose all information fully and accurately.
Additional costs for any future purchase such as stamp duty and legal fees are not routinely included as these will vary according to the value and type of property you eventually purchase but estimated figures based on example prices can be included if required.
As standard mortgage lenders expect mortgages to be repaid before you retire and because you are not yet in receipt of any retirement income (and any figures would be based on projections alone), no retirement income was included when assessing your retirement income. It is extremely unlikely that any lender would allow a standard mortgage to progress past your retirement age or at the very latest 70 years of age or that the inclusion of such income would increase the maximum borrowing capacity figure.
No assumption has been made as to your acceptability to the lenders mentioned in the report. In the event that you reply to any of the lenders mentioned in the report they will all apply their own lending criteria to any application at the time that it is made and any application will be fully underwritten at that time based on the lenders criteria and your circumstances.
Finally, this report does not consider the competitiveness of the products that any lender would offer to you and neither does it consider the appropriateness of any products that they may offer at the time of any application.
Summary and results
No maintenance or benefit payments have been factored into this report as these have not been finalised and it is impossible to say with any degree of accuracy what they may be until your divorce proceedings have been finalised. The report is intended to show your maximum borrowing capacity to assist you in concluding your divorce proceedings.
Potential Cost Of Future Mortgages
An example illustration for a product from the most likely lender can also be provided for a product of your choice e.g. a 2 year discounted mortgage, a 5 year fixed rate etc. This will allow you to demonstrate future, ongoing monthly mortgage expenditure.
Evidence Required To Produce The Report
In producing the report we will need to see supporting evidence to ensure that the results are as accurate a possible.
Typically these include:- 3 months bank statements, 3 months payslips or 3 years tax calculations if you are self employed and a copy of your credit report . All documentation provided will be noted in the report to further evidence the accuracy of the figures provided.
Specialist Capacity Reports
No Mortgage Capacity Reports – e.g. due to an applicant’s residency status, lack of income or poor credit history.
Later Life Capacity Reports – to include potential mortgage capacity of clients aged 55 and above who wish to include lifetime mortgages or retirement interest only mortgages in their results.
Prices
An individual Standard Mortgage Capacity report costs £395
Standard Joint mortgage capacity assessment £695 (This is for 2 parties, normally this will be for the divorcing couple but can include future partners etc). Additional parties can be added for £300 each and all parties need to be happy to divulge personal and financial information and records.
No Mortgage Capacity Reports cost £495
Later Life Capacity – £395 in isolation or an additional £200 when produced in conjunction with a Standard Mortgage Capacity Report
How To Pay
Via BACS or over the phone via debit or credit card. Contact us for details. Payment will be required in advance before the report is issued.