What is a mortgage capacity report?
A mortgage capacity report is a written assessment of how much you may be able to borrow, based on your income, financial commitments and personal circumstances. It is also called a mortgage capacity assessment or borrowing capacity report.
It explains the borrowing figure, the assumptions behind it and the likely monthly mortgage payments. This can help you and your solicitor assess your housing options during financial settlement discussions.
The assessment reflects the information provided and lending criteria at the time it is prepared. It is not a mortgage offer or a guarantee of lending.
When might you need a report?
You may need a mortgage capacity report if you are:
Going through divorce or separation and discussing future housing.
Considering whether you can afford the family home on your own.
Looking to buy out your former partner’s share of the property.
Planning to buy another home using your share of the equity.
Comparing proposed financial settlements with your solicitor or mediator.
Asked by your solicitor to provide evidence of your borrowing capacity.
If your solicitor needs a report for court proceedings, tell us before commissioning it so we can confirm the required scope and format.
What does your mortgage capacity assessment include?
Your report sets out a clear picture of your potential borrowing, including:
Your assessed borrowing capacity under the agreed circumstances.
The financial information and assumptions used in the assessment.
Relevant lender criteria and factors affecting your options.
Indicative mortgage terms and monthly repayments.
How your available deposit or equity affects your housing budget.
Any agreed alternative scenarios and their effect on borrowing.
Where the assessment indicates that borrowing is not currently available, the report explains the reasons and relevant lending restrictions.
Maximum borrowing and a comfortable monthly budget can be different. We consider your ongoing commitments so you can understand the practical implications of the figures.
Keeping the family home or buying somewhere new
If you want to keep the family home, the assessment can explore whether borrowing in your sole name could cover the existing mortgage and any agreed payment to your former partner.
If you plan to move, we can assess borrowing alongside your expected deposit to help you understand your potential purchase budget. You will also need to allow for moving costs, legal fees and any applicable property taxes — our stamp duty calculator gives an estimate.
Removing someone from a mortgage requires the lender’s agreement. A settlement between you and your former partner does not, by itself, release either person from their mortgage obligations.
How different settlement scenarios affect borrowing
Your mortgage capacity may change depending on the financial arrangements agreed during separation.
For example, a larger share of the property equity could increase your deposit, while a change in maintenance payments, working hours or childcare costs could affect affordability.
Tell us which scenarios you and your solicitor need compared. We agree the scope before preparing the report and clearly identify any assumptions about future circumstances.
What information will we need?
We will explain which documents are relevant to your assessment. These may include:
Proof of identity and address.
Recent payslips, or accounts and tax documents if you are self-employed.
Bank statements and details of regular spending.
Mortgage balances and an estimated property value.
Savings and the deposit or equity expected to be available.
Loans, credit cards, car finance and other commitments.
Details of dependants, childcare and maintenance paid or received.
Relevant credit information.
Your solicitor’s instructions and any report deadline.
If your settlement has not been agreed, let us know which figures are confirmed and which are proposed.
How mortgage capacity affects your housing budget
The mortgage figure is one part of a rehousing plan. Your available deposit, purchase costs and preferred monthly budget also matter. Keep those figures separate so that a proposed settlement can be discussed on a consistent basis.
For an invented example, assume you expect £120,000 from a property sale or settlement. You set aside an assumed £15,000 for transaction costs and a cash reserve, leaving £105,000 for a deposit. If an assessment indicated potential borrowing of £250,000, the resulting purchase budget would be £355,000 before any mortgage fee added to the loan. These are illustrative figures, not an assessment of your case or an estimate of your costs.
If the settlement instead left £90,000 available, the same assumed £15,000 reserve would leave a £75,000 deposit and a £325,000 purchase budget with the same borrowing figure. However, borrowing itself might change if the revised arrangement also changed maintenance, debts or household spending. A deposit comparison alone cannot settle that question.
Ask for the relevant scenarios to be identified before work begins. Keep confirmed facts, proposed arrangements and assumptions clearly labelled. Your solicitor advises on the settlement; the mortgage assessment considers the borrowing implications of the agreed instruction.
A useful brief for your solicitor or mediator
When requesting a mortgage capacity report for divorce, explain the housing question the report needs to address. Is the priority remaining in the family home, buying another property, or comparing both? Include any written instructions, the proposed equity available, relevant maintenance assumptions and the date the report is needed.
Tell us whether the information describes your current household or the arrangements expected after separation. Differences in childcare, regular commitments and income can affect the assessment. If a figure is disputed or not yet agreed, identify it rather than presenting it as settled.
For a report intended for an FDR or another hearing, your solicitor should confirm the required scope, format and any applicable court directions. Contact us before commissioning the work so we can confirm whether the proposed instruction and deadline can be met.
What happens after the report?
The report gives you a basis for discussing housing options; a later mortgage application is a separate stage. The lender must assess the actual applicant, evidence and property. Changes in your finances, interest rates or lender criteria may mean the figures need reviewing.
Once your next steps are clearer, explore our residential mortgage advice, moving-home mortgage guide and product transfer and remortgage guide. If you work for yourself, our self-employed income guide explains why the evidence should match how you earn.
Further information about separation and borrowing
MoneyHelper’s divorce and separation guidance covers broader financial questions. You can also view Ria Ali’s Resolution member profile. These resources complement the mortgage discussion; transaction-specific legal advice should come from your solicitor.
Mortgage capacity report questions answered
How long does a capacity report stay relevant?
Lender criteria, rates and your circumstances can change, so a report reflects the position on the date it is prepared. If negotiations take several months, an update may be needed before a final agreement.
Can a report cover both parties?
Each person usually needs their own report, because borrowing capacity depends on individual income and commitments. Reports can set out different scenarios, such as keeping the family home or buying elsewhere.
How do child and spousal maintenance affect capacity?
Some lenders consider maintenance received, often only once it is formally agreed and has been paid for a period. Maintenance paid out is treated as a commitment. The report can show both positions.
We prepare capacity reports for clients across south London and Surrey, including Sutton and Banstead.
Your home may be repossessed if you do not keep up repayments on your mortgage.
