What Are the Different Types of Mortgage Capacity Reports?

There is no one-size-fits-all mortgage capacity report. Different report types are designed to assess different borrowing situations, and the report you need will depend on your circumstances and the information that needs to be evidenced.

In this article, we will walk you through all the different types of mortgage capacity reports available, what each report will include, and how to get the report that is right for your situation. Let’s begin.

What Is a Single Mortgage Capacity Report?

This is usually the main mortgage capacity report and is requested when one person needs to know how much they could borrow. This could be after a separation, during financial negotiations, or when trying to calculate whether or not buying another property is a realistic option.

Included in a Single Mortgage Capacity Report will be:

• An estimated borrowing range
• Indicative monthly repayments
• Affordability commentary
• Scenario analysis
• Lender considerations

Most importantly, a Single Mortgage Capacity Report is based on real financial information and current lender affordability models, and is not just a broad estimate. As such, these reports are often used to support settlement discussions, negotiations, and court decisions where mortgage affordability is a key consideration.

What Is a Joint Mortgage Capacity Report?

This type of report is generally requested when both parties need their mortgage borrowing capacity assessed and is most commonly prepared during divorce and financial settlements.

Rather than arranging two separate reports, a joint mortgage capacity report allows both assessments to be completed together, while still keeping each person’s findings completely separate to preserve confidentiality.

Included in a Joint Mortgage Capacity Report will be:

• Two separate borrowing capacity assessments
• Individual affordability commentary for each party
• Indicative monthly repayments
• Lender considerations
• Supporting mortgage illustration(s)

Despite the name, a Joint Mortgage Capacity Report is not a combined affordability assessment. Rather, it is often considered to be a more cost-effective way of securing two individual reports.

Crucially, each report will remain separate, allowing both parties, their solicitors, and the court to consider each person’s mortgage position independently.

What Is a Nil Mortgage Capacity Report?

This type of report is usually requested when there is uncertainty around whether or not an individual would be able to afford a mortgage on their own. This could be because of insufficient income, significant financial commitments, adverse credit, or other circumstances that result in mortgage borrowing not being achievable.

Included in a Nil Mortgage Capacity Report will be:

• Confirmation of nil borrowing capacity
• Commentary on affordability
• The key factors preventing mortgage borrowing
• Lender considerations
• Supporting explanation of the assessment outcome

Although the name may sound negative, the report itself can actually provide valuable insights, specifically in divorce and financial remedy proceedings.

Ultimately, a Nil Mortgage Capacity Report can help demonstrate that a mortgage is not currently achievable. This information can then be used during financial settlement discussions to provide a clear understanding of an individual’s current mortgage position and support informed decisions moving forward.

What Is a Multiple Scenario Mortgage Capacity Report?

Sometimes one outcome simply does not tell the full story. A multiple scenario report can cover a variety of different outcomes, assessing an individual’s mortgage affordability across a variety of different circumstances.

Included in a Multiple Scenario Mortgage Capacity Report will be:

• Different capital settlement amounts
• Changes in income
• Adjustments to financial commitments
• Alternative maintenance arrangements
• Different deposit or equity positions

By comparing different outcomes side by side, the report can provide a clearer comparison of how various settlement arrangements may affect a person’s ability to obtain a mortgage. In turn, this can help support discussions around financial settlements and provide useful evidence for solicitors and the court when considering future housing arrangements.

Why Are There Different Types of Mortgage Capacity Reports?

During divorce and financial remedy proceedings, different Mortgage Capacity Reports help answer the questions that matter most to your circumstances. For many people, this means understanding the answers to questions such as:

• Can I afford to stay in my current home?
• Could I buy somewhere else?
• How much could I borrow on my own?
• How would additional maintenance payments affect my affordability?
• What happens if the settlement proposal changes?

Every case is different, which is why there is no single mortgage capacity report that will work for everyone. The best report will always depend on your unique circumstances and the questions that you need answering.

Which Type of Mortgage Capacity Report Do You Need?

Choosing the right mortgage capacity report will depend on your specific circumstances and the best place to start is by asking: “What do I need to know?”

For some people, a single borrowing capacity assessment is all that will be needed. For others, it may be important to compare several different financial scenarios to demonstrate how changes in income, maintenance, or settlement arrangements could affect their mortgage borrowing capacity.

To help you understand with which report may be most suitable for your situation, we’ve created a simple guide below that matches some of the most common situations with the appropriate report type:

Ultimately, not every situation will fit neatly into a single category. If you’re unsure which mortgage capacity report you need, then talking with a mortgage broker can help. Providers will be able to discuss your circumstances and recommend the mortgage capacity report that best matches your situation.

Which Mortgage Advisers Can Produce Mortgage Capacity Reports?

No matter what type of mortgage capacity report you require, all reports need to be completed by a qualified mortgage adviser with experience in assessing mortgage borrowing capacity.

So whether you need a single or joint borrowing capacity assessment, confirm whether a mortgage would be achievable, or compare different financial settlement scenarios, choosing a provider who is qualified and can advise you on the right report for your situation is essential.

At Boon Brokers, our FCA-regulated mortgage advisers take the time to talk to you and understand your circumstances before recommending the report that is right for you. Every mortgage capacity report is prepared using current mortgage lending criteria and provides clear, professional evidence for court-ready settlement discussions and financial remedy proceedings.

To explore mortgage capacity reports in more detail, read our complete guide on what is a mortgage capacity report to learn how these reports are prepared, when they are needed, and how they can help during financial remedy proceedings.