At St Barts Finance we pride ourselves on our mortgage and industry knowledge. We aim to provide a quality service across Mortgages, Pensions, Insurance and Investment.
As part of this, we offer clients and solicitors a Mortgage Capacity Report service
These reports are requested by either the client or their solicitors and serve the purpose to show the mortgage capacity of the client and are required by the courts dealing with the divorce proceedings.
The report is based on the current circumstances and sometimes on potential future income, especially if the client is expected to have a promotion or if a new contract is already in place with an employer. We also aim to use other forms of income such as bonus, overtime, commission, rental income, benefit income such as child benefit, work and child tax credit, as well as child maintenance.
To round up the report we factor present and future credit commitments such as personal loans, credit cards, hire purchases and student loans.
As an example of what we do, I recently produced an 11-page fully bound report for a client, who had already been at our office for a previous consultation.
We met at our office in Charminster Road in Bournemouth, but we also have the facility to meet at our other branch situated in Ashley Cross in Poole. During our meeting we reviewed the client’s present and future circumstances, factoring in income and outgoings, as well as taking into account the potential divorce settlement.
I completed our Fact Find template with our client’s details and assessed the client income with our panel of over 50 lenders. I used a sample of lenders to obtain the maximum amount the client could borrow within our panel. Each lender has their own peculiar way of assessing the income, so wherever a lender might take 100% of enhancements such as the overtime, another one might take only 65%, or where a lender accepts child benefit as an acceptable source of income, another lender might refuse to accept it altogether. Assessing what makes the client’s total income and choosing the lenders that would maximise their earning is part of the initial assessment.
This information enabled me to then compile my findings and produce my report
In this case, my client is a software engineer and has an income mainly made by basic salary with a component of rental income coming from a property that she currently owns in joint names with his ex-wife. I worked out the borrowing capacity of the client based on two different scenarios, one where the client is allowed to keep the rental property, therefore, I was able to factor in that income source in my calculation, and another one where the rental property was going to be sold and the equity in it, split as part of the divorce settlement.
Furthermore, I advised the client on the best term available (based on the lender’s criteria and the client’s affordability) and on the most suitable mortgage deal available with the lender that ticks all the boxes for my client. The report provided the client not only with information on the maximum amount he could borrow but also on the provisional monthly payment on his future mortgage and an idea on what kind of price range the client could potentially attain.
Mortgage Capacity Reports are not part of the Openwork offering and are offered in our own right. Openwork Limited accepts no responsibility for this aspect of our business. Mortgage Capacity Reports are not regulated by the Financial Conduct Authority.
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