Mortgage Capacity Report for Divorce: What to Prepare

By PMS Mortgages · Published 14 October 2026 · Meet Ria Ali

Your home may be repossessed if you do not keep up repayments on your mortgage.

When you are separating, a question about the family home can quickly become several questions at once. Could you take the mortgage into your sole name? What could you buy with the equity you expect to receive? How would maintenance or a change in working hours affect the figures?

A mortgage capacity report for divorce helps organise the borrowing part of that discussion. Useful preparation starts with a clear instruction and an honest account of the circumstances to assess. This guide explains how to build that brief before requesting a report from PMS Mortgages in Croydon.

1. Start with the housing question

Write down the decision you need information about. “How much can I borrow?” is a useful starting point, but it does not explain whether you hope to keep the existing home, move elsewhere or compare both routes. Identify the property, ownership and mortgage questions that your solicitor is helping you address.

If you want to keep the home, note the mortgage balance and any proposed payment to your former partner. If you plan to move, identify the deposit you expect to have available after the relevant costs. An assessment cannot resolve every legal or settlement question, so be clear about which question belongs to which adviser.

2. Confirm the purpose with your solicitor

Your solicitor or mediator may have specific scenarios or instructions in mind. Ask what information would help the discussion, rather than ordering a report based only on its name. If there is a hearing or another formal deadline, explain that before commissioning the work.

For court-related instructions, ask your solicitor to confirm the scope, format, relevant directions and whether any permission is required. Do not assume that every borrowing estimate serves the same purpose. PMS will confirm whether the proposed instruction is suitable before proceeding. A report is not a promise that a court will accept a particular figure or reach a particular outcome.

3. Describe income as it is actually received

Prepare a short income summary showing how you work and how you are paid. For employment, distinguish regular salary from overtime, commission or bonuses. If you run a business, explain the trading structure and the information available to support the earnings. Avoid using turnover as a substitute for the income relevant to the assessment.

Our self-employed mortgage income guide and contractor evidence guide can help you organise the questions. Tell your adviser about anticipated changes as well as current figures. Proposed future income should be labelled clearly, with its timing and evidence explained. It should not be presented as a confirmed fact simply because it would make the housing plan easier.

4. Separate current spending from the proposed household budget

A joint household budget may differ from the budget each person expects after separation. Set out which regular costs will continue, which may change and which are still uncertain. Include credit commitments, childcare, travel and the expected costs of the future home. State whether maintenance is paid or received and whether the arrangement is agreed or proposed.

This exercise is about presenting a complete picture. A maximum borrowing figure and a payment that feels manageable are different questions. Keep a personal budget alongside the borrowing assessment so you can discuss the practical effect of the options, rather than focusing only on the largest loan figure.

5. Keep equity, deposit and purchase costs distinct

Equity in a property is not automatically the deposit you can use for your next purchase. The amount available depends on the mortgage repayment, relevant costs and the arrangements being considered. Ask your solicitor to explain the legal position and provide the figures relevant to the instruction.

Keep a simple worksheet with separate lines for expected funds, purchase costs, a cash reserve and the deposit remaining. Use confirmed figures where you have them and label estimates. If you use our stamp duty calculator, treat the result as an estimate and have the transaction-specific tax position checked. This prevents a proposed housing budget from quietly relying on money already needed elsewhere.

6. Build a comparison sheet for alternative scenarios

If more than one settlement proposal is being discussed, give each a clear label. For each scenario, list the deposit or equity available, income assumptions, commitments and the housing objective. Change the relevant inputs consistently. For example, a larger deposit alongside a different maintenance arrangement involves more than a deposit-only comparison.

Keep a column identifying who supplied each figure and whether it is confirmed or proposed. Agree which scenarios are within the report scope before work begins. This makes the comparison easier to explain and reduces the chance that two people are discussing apparently similar figures built on different assumptions.

7. Check the evidence and dates

Your adviser will confirm the documents needed for your circumstances. Make an inventory of the income records, bank statements, credit commitments, mortgage statements and property information you already have. Check that names, dates and balances are consistent, and identify any missing documents early.

Do not change or conceal evidence to fit a preferred outcome. If a number needs explaining, provide the context. Ask PMS how to supply documents securely; the first enquiry can simply explain the purpose of the report and the deadline. Keep a record of what was supplied and tell the adviser if your circumstances change while the assessment is being prepared.

8. Understand the next stage

The report explains an assessment under the stated circumstances. It is not a mortgage offer, property valuation, legal settlement or guarantee that you can retain the home. A later application must be assessed by the lender using the actual applicant, evidence and property. Any change in income, commitments or lending conditions can affect the result.

If moving becomes the agreed route, our moving-home mortgage guide explains the questions around an existing mortgage. If reviewing the current borrowing is relevant, read our product transfer and remortgage comparison. Discuss the appropriate next step with your advisers rather than treating the report as the final transaction.

Request a mortgage capacity report from PMS Mortgages

Our Mortgage Capacity Reports service explains the scope and current fee. The fixed PMS fee is £479 and covers the report and our fees for the resulting mortgage transaction, with no further PMS Mortgages fees. Any applicable lender and third-party costs are separate.

For an appointment, contact PMS at Airport House, Purley Way, Croydon CR0 0XZ. We offer in-person, phone and Zoom appointments. Request your mortgage capacity report consultation and include its purpose, the scenarios you need considered and any deadline. We will confirm the requirements and expected timescale.

Sources and further reading

• MoneyHelper: divorce and separation

• MoneyHelper: mortgage affordability calculator

• Resolution: mortgage capacity reports for final FDRs

General information, rather than an assessment of your circumstances. Your solicitor advises on legal and settlement matters; the lender decides whether to approve a mortgage application.