What is a mortgage capacity report?

The short version

A mortgage capacity report is an independent, written assessment of how much someone is likely to be able to borrow on a mortgage after a separation or divorce. It is prepared by a CeMAP-qualified mortgage professional, using current lender criteria, against the facts of the case.

It is not a mortgage offer, and it is not a Decision in Principle from a high-street bank. Those products look at one lender. A capacity report looks at what the market is actually likely to do with that person’s income, age, credit and commitments.

Why it exists

In divorce and financial-remedy proceedings, the family home is often the largest asset. Someone usually needs to know whether they can remain in it, whether they can rehouse, and what size of mortgage is realistic once the assets are divided.

Judges, mediators and solicitors cannot guess that figure. Online calculators and a conversation with a bank are easy to challenge. A formal report, prepared by an FCA-authorised adviser, gives the court and both sides an evidence-based number they can work from.

What the report typically covers

The maximum borrowing that is likely to be available, and an indication of monthly cost, based on the term and retirement age used for the assessment.

The facts the assessment is based on: income (including guaranteed allowances, bonus, commission, overtime, self-employed profits and maintenance), credit commitments, other mortgages, dependents, and the property or deposit parameters you have given us.

Where instructed, additional scenarios beyond the two included in the fee — for example a different deposit, a change in maintenance, or the effect of retaining versus selling a property — are £25 each.

When it is usually needed

Before a First Appointment or FDA, so negotiations start from a realistic figure rather than an aspiration.

Ahead of an FDR or final hearing, particularly where housing need or the division of equity is in dispute.

During solicitor-led or mediation negotiations, where both parties need a credible basis for who keeps the home and how much capital each person requires to rehouse.

What it is not

It is not financial advice on how to divide assets, and it is not a recommendation of a particular lender or product. It is an assessment of capacity. If, later, someone wants to apply for a mortgage, that is a separate instruction.