The Financial Conduct Authority does not regulate most Buy to Let Mortgages.
If you are splitting/getting divorced from your partner you may well be asked to get a Mortgage Capacity Report by your solicitor. Let’s start by explaining what they are.
What is a Mortgage Capacity Report and how do I get one?
Mortgage Capacity Reports (Sometimes referred to as ‘MCR’s) are detailed reports outlining how much you can borrow for mortgage purposes. These can vary in detail but in order to meet most solicitors expectations they should meet the following:
- Be completed by a qualified Mortgage Broker/Advisor
- Have been based on documentary evidence (income documents, credit report, etc)
- Be supplied following a satisfactory credit check from a Mortgage Lender
These are important documents when separating from a partner as they outline how much you can borrow and if that isn’t enough to buy in an appropriate area, would mean you need a larger sum from the joint assets, if possible, to allow you to buy somewhere suitable.
How do I get a Mortgage Capacity Report?
This is where we come in. Lloyd Wells Mortgages complete Mortgage Capacity Reports regularly for clients and the process is actually fairly painless for the client.
We’ll initially arrange a time to speak on the phone for 15 minutes to discuss your situation and will follow this call up with an email requesting a number of documents to evidence the figures we’ve discussed. These documents are:
- A copy of a valid Passport for Identification purposes.
- Your most recent 3 payslips if employed OR your latest 2 Tax Year Overviews and Tax Computations if Self Employed.
- A recent copy of your credit report, we recommend Check My File as it shows reports from multiple agencies.
- Your most recent 3 bank statements.
You can email these documents over to us so that we can get moving with the research as quickly as possible.
We will then complete a number of affordability assessments using your specific figures and will be able to complete a soft credit check in order to confirm the amount you can borrow.
We’ll then fill out and complete your Mortgage Capacity report. This will be a two or three-page document outlining the amount you can borrow, the information this was based on, the likely mortgage terms (interest rate and monthly cost), and the fact you have passed a credit check to confirm this level of borrowing.
We can email this back over to you directly or to your solicitor if you’d prefer.
As you can see, the process for you, the client, is very straightforward. 15 minutes on the phone and then supplying the documentation.
Next Steps
If your solicitor has asked you to get a Mortgage Capacity Report or you think you may need one as part of the process, please get in touch.
You can call us on 0117 332 5197 or you can email us at Enquiry@lloydwellsmortgages.co.uk
We’d be happy to discuss, even if you are in the early stages and are yet to instruct a solicitor to help with the process we can help. We can even recommend a Family solicitor if you are that early in the process that may be able to assist.
