Mortgage Capacity Report Case Studies
Scenario: CEO £725k Purchase Scenario
On 5th December 2024, Michael, a CEO of a processing company, sought our assistance to demonstrate that the marital home did not need to be sold as part of the financial settlement. He aimed to prove that he could remortgage the property and provide the opposing party with the equity they were entitled to.
We reviewed the property’s ownership history and included in the report that the opposing party should receive a reduced settlement amount, as Michael’s family had contributed the deposit when the property was purchased in his sole name before the marriage.
The property was valued at approximately £725,000, and Michael required a remortgage amount of £616,250. Two scenarios were explored in the report: one where his existing debts were repaid and another where they were not. It became clear that for the remortgage to succeed, the debts accrued during the marriage would need to be repaid as part of the settlement.
Scenario: Limited Company Director Adverse Credit Purchase
On 6th December 2024, Peter, a limited company director for a well-known high street franchise, approached us for a mortgage capacity report. The report was required to demonstrate his need for a significant financial settlement from the sale of the marital home.
Due to a recent default on his credit file, we started our assessment within the specialist lending market. Using their affordability calculators, we found that despite Peter’s substantial income, his borrowing capacity was significantly reduced compared to what would be available from mainstream lenders.
The report, which cost £129.99, provided a clear and detailed explanation of Peter’s financial position, helping the opposing solicitors understand the limitations caused by his adverse credit history. We are awaiting the finalisation of Peter’s divorce and will assist him with a specialist purchase mortgage once the proceedings are concluded.
Scenario: Proof of Reduction in Income
On 2nd December 2024, Matthew, a training coordinator, contacted us to request a mortgage capacity report to support his case. Matthew needed to demonstrate that his income had significantly reduced since his divorce, requiring the financial settlement to be re-evaluated before it was finalised.
The report was based on a purchase scenario and revealed that Matthew’s borrowing capacity was limited to £29,201, a figure far lower than earlier projections. This reduction was largely attributed to his current debts, a recent change in income, and redundancy, which had impacted his ability to meet unsecured debt obligations. These challenges had adversely affected his credit score, further limiting his lending options.
Scenario: First Time Buyer Nil Capacity
On 27th November 2024, Melissa engaged our services as a first-time mortgage applicant. Her solicitor requested a mortgage capacity report to help all parties involved in her divorce proceedings understand her financial position.
Like many clients going through divorce, Melissa had experienced a decline in her credit score due to missed payments while she was out of work, having relocated and sought new employment. She did not have a deposit available, so we based the scenario on a generic 15% deposit for a property worth £200,000.
Upon review, it was determined that Melissa’s report was a nil capacity report, as she had over 13 defaults on her credit file. This placed her outside the lending criteria of all mainstream and specialist lenders.
Scenario: £1.3 million purchase
On 7th November 2024, Sarah approached us for a mortgage capacity report to demonstrate to the courts her need for a significant deposit from the sale of the marital home. This deposit would enable her to purchase a property worth £1.3 million and maintain her and her children’s current lifestyle.
Sarah’s monthly outgoings, including £5,332 in private school fees for her children, were factored into the report. It showed that she required the full £1.3 million to purchase the property outright without the need for a mortgage.
Scenario: Remortgage to Raise Funds
On 28th October 2025, Megan contacted us to assist in proving to the courts that her family home did not need to be sold as part of the financial settlement. She aimed to show she was eligible to remortgage and access equity to pay the opposing party’s share.
We conducted a thorough assessment of Megan’s income and confirmed that she could borrow the amount required to remortgage the property. This evidence enabled her to retain the family home and avoid moving her children to a different school.
Scenario: 3rd Residential Mortgage
On 18th January 2025, Nigel, a doctor, sought our services after his ex-wife reopened financial matters that had been previously settled. Nigel currently has two residential mortgages in his name, one of which is occupied by his ex-wife.
Nigel needed to demonstrate that he could not take on additional borrowing to release equity to his ex-wife. We showed that his existing outgoings left him with no surplus funds to support another mortgage. This report effectively illustrated Nigel’s financial position to the courts.
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