Mortgage Capacity Letter

A mortgage capacity letter (MCL) - sometimes called a mortgage capacity report (MCR) – is a professional, in-depth assessment of how much an individual can realistically borrow for a mortgage, considering their specific income, expenses, debts, and credit history. 

An MCR is often used in divorce or legal cases to determine fair property division and future housing affordability. The holder can present the MCR to a court as evidence of future mortgage borrowing levels

Using a qualified Mortgage Advisor ensures that the report is credible and accurate enough to be used in courts or by other legal representatives.

Why do you need a mortgage capacity letter?

Having this will not only provide a clearer picture of financial limitations, but it will also prevent any disputes and delays going forward.

• You will both receive clarity on where you stand financially, giving you a clear idea of your borrowing possibilities
• Legally required – some family courts require a mortgage capacity letter to ensure a fair division
• It can help you with future planning – will you stay in the marital home or sell up?

What does it include?

A mortgage capacity letter will look at the following:

• Income
• Expenses
• Debts
• Savings and deposit
• Length of mortgage term
• Stress testing
• Monthly repayment amounts
• Maximum borrowing

How to get a Mortgage Capacity Letter

• Speak to an Independent Mortgage Advisor – Mortgage Required are experts at helping to provide those in need with a comprehensive mortgage capacity letter.
• Get your documents together – you will need to provide evidence of income, outgoings, existing mortgage details, savings, and ID
• The Advisor will look at your individual circumstances and put together the report.

For further information on this, please do contact our team on 01628 507477.