What Is a Mortgage Capacity Report? Cost and Uses
If your solicitor has asked for a mortgage capacity report, it usually means one question needs answering: could you actually afford to keep the house on your own?
It's a written assessment of how much you could realistically borrow, prepared so a court or a negotiation has a credible figure to work from rather than a guess. It isn't a mortgage, and it isn't an offer — it's evidence.
Here's what one contains, what it costs, and when something cheaper will do the job just as well.
At a glance
- Mainly used for
- Divorce & financial settlements
- FCA-regulated?
- No
- Typical cost
- From around £175
- Turnaround
- Often a few working days
- Cheaper option
- An affordability letter or AIP
Key takeaways
- A mortgage capacity report sets out how much you could borrow, in a form that stands up in court — most often during a divorce or financial settlement.
- It can model "what if" scenarios you aren't in yet: paying or receiving maintenance, dropping to part-time hours, or taking on the whole mortgage alone.
- It costs from around £175, or roughly £300 where both parties are assessed.
- It isn't an FCA-regulated product and it isn't a lending guarantee — it's a professional opinion based on the day's lending criteria.
- If you only need to know where you stand, an affordability letter or agreement in principle is faster and cheaper.
Where it fits in the process
- SeparationYou and your ex begin sorting out finances, usually with solicitors.
- Financial disclosureBoth sides set out income, debts, property and pensions in full.
- The question arisesCan one of you afford to buy the other out and keep the home?
- Mortgage capacity reportAn adviser assesses realistic borrowing, including any scenarios the court needs modelled.
- Negotiation or hearingThe report is used as evidence to reach a fair split.
- SettlementA consent order or court order records the outcome.
What is a mortgage capacity report?
A mortgage capacity report — sometimes called a mortgage assessment report — is a document prepared by a mortgage adviser setting out how much you could borrow, and on what terms, based on your income, outgoings, credit profile and the lending rules that apply at the time.
Its value is that it comes from someone qualified, in writing, and can model circumstances you aren't in yet. That last point is the crucial one: a court often needs to know what your finances would look like after a settlement, not what they look like today.
It's different from the documents you may already have met:
| Document | What it's for | Roughly |
|---|---|---|
| Mortgage capacity report | Evidence for court or a settlement | From £175 |
| Agreement in principle | Showing an estate agent you're a serious buyer | Free |
| Affordability letter | A quick written steer from an adviser | Often free |
| Mortgage offer | An actual, formal offer of lending | Free, but needs a full application |
A real-world example
John and Jane are divorcing and own their home together. John wants to keep it and buy out Jane's share, but nobody knows whether he can actually borrow enough to do that on one income.
A mortgage capacity report answers it properly. It assesses John's income and commitments, then models the scenarios that matter — what changes if he pays maintenance, what happens if he keeps the existing mortgage term versus extends it, and how much he could raise in each case.
That turns "I think I can manage" into a figure both solicitors, and a judge, can work from. It also stops the sort of settlement that quietly collapses six months later because the borrowing was never really there.
The scenarios worth modelling
Decide upfront which situations you need assessed — it's much cheaper than going back for a second report. The most common are:
- Maintenance payments, whether you'll be paying or receiving them.
- Childcare costs, especially if they're about to change.
- A change in benefits, such as Universal Credit or Child Benefit.
- A change in working hours — going part-time, or back to full-time.
- Existing debts like credit cards, car finance or a personal loan.
- A different property, if one of you plans to buy somewhere smaller.
You rarely need more than a handful. Your solicitor will usually tell you which ones the court cares about.
What's actually in the report
The report is built to your requirements, but it typically covers:
- Your existing mortgage, including the outstanding balance and term.
- An estimated value for the property — you can sanity-check this yourself with our house value calculator.
- Your income, including any bonus, overtime or self-employed profit.
- How much you could borrow now, and under each agreed scenario.
- Savings, investments and pensions where relevant.
- The adviser's reasoning, so the figures can be understood and challenged.
How much does one cost?
Prices vary by firm. Expect from around £175 for a straightforward single report, rising with complexity, and around £300 where both parties are assessed or several scenarios are modelled.
Some firms include representation if the report is questioned in court — worth asking about upfront, because it can save considerably more than it costs.
Is it regulated?
No — a mortgage capacity report is not an FCA-regulated product. That doesn't mean it's unreliable; it means it carries no consumer-protection guarantee and no lender is bound by it.
It's a professional opinion based on the lending criteria that applied on the day it was written. If a lender changes its rules, or your circumstances shift, the figures can move. Courts understand this — the report is evidence, not a promise.
Get a rough figure before you pay for anything
Before commissioning a report, it's worth knowing roughly where you stand. This gives you an instant estimate of borrowing based on income and commitments — free, no sign-up:
Most lenders land between £140,000 and £166,250.
A rough guide based on the common 4.5× income rule. Lenders also weigh your outgoings, credit history, deposit and the property, so real offers vary. Speaking to a mortgage adviser gives an accurate figure.
Treat it as a starting point, not a substitute: it can't model maintenance payments or a court's questions, which is exactly what you're paying an adviser for.
When you don't need one
Not every separation needs a formal report. If you simply want to know what's possible, a mortgage adviser can often provide an affordability letter or an agreement in principle far faster and usually free.
A mortgage promise is quicker and cheaper again — but be clear-eyed about it: it's a guideline, not a guarantee, and it generally won't carry the same weight in court. If proceedings are already underway, ask your solicitor before spending money on the wrong document.
Where to get one
Mortgage capacity reports are produced by mortgage advisers, though not every firm offers them — it's a specialism, and some focus on divorce work specifically. Your solicitor will often have advisers they've worked with before, which is usually the quickest route to someone who knows what a court expects.
If you're arranging it yourself, ask three things: whether they've prepared reports for court before, what's included for the price, and whether they'll stand behind the report if it's challenged.
Frequently asked questions
How long does a mortgage capacity report take?
Often just a few working days once the adviser has your paperwork. The delay is usually gathering documents — payslips, bank statements, credit commitments — rather than writing the report, so having those ready speeds things up considerably.
Does a mortgage capacity report affect my credit score?
It shouldn't. The assessment is based on information you provide, and any credit check involved is normally a soft search, which doesn't affect your score. If you're worried, ask the adviser to confirm before they start.
Do both parties need their own report?
Not always, but it's common in contested cases where each side's borrowing is disputed. Some firms produce a joint report covering both, which usually works out cheaper than two separate ones.
How long is a mortgage capacity report valid?
There's no fixed expiry, but it reflects lending criteria and your circumstances on the day. If several months pass, or rates or your income change materially, expect it to need updating.
Is a mortgage capacity report the same as an agreement in principle?
No. An agreement in principle is a lender's quick indication for a purchase. A capacity report is an adviser's written assessment prepared as evidence, able to model future scenarios an AIP can't.
Can I just use an agreement in principle in court?
Sometimes, for a straightforward point. But an AIP reflects only your position today with one lender, so it can't answer "what if I'm paying maintenance?" — which is usually the question that matters. Ask your solicitor what the court will accept.
Related reading: the mortgage advice process · does a mortgage in principle mean you'll be accepted? · house valuation for divorce · what your home is worth now
General information only, not legal or financial advice. Divorce finances are personal and complex — take advice from your solicitor and a qualified mortgage adviser before making decisions.
