The effects of non-fixed outgoings on your mortgage capacity assessment?

Have you ever wondered what the effects of non-fixed outgoings on your mortgage capacity assessment are? Read our blog post below to find out or get In touch with a mortgage adviser.

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The effects of non-fixed outgoings on your mortgage capacity assessment

Before creating a mortgage capacity report for use in divorce proceedings, your fixed outgoings are considered a given. When one of our mortgage brokers at St Bart’s Finance is assessing your personal circumstances we also need to consider your varying outgoings?

This includes but is not limited to:

  • Child Care
  • Socialising
  • Commuting
  • Hair Cuts
  • Clothing
  • Food Shopping
  • Entertaining
  • Gym Memberships
  • Smoking or e-cigs

At St Bart’s Finance, it is our job to provide you with a realistic view of your affordability and to do this we use our years of experience working with a range of mortgage lenders from across the UK market. We look to build a full and accurate picture of your hard and soft outgoings on a monthly basis.

This is no different to what a lender will do when they are assessing your mortgage application. Since the mortgage market review, it has become a must that advisors and lenders understand not only your bills but your lifestyle costs, as this will affect your ability to repay the mortgage loan.

These figures can be hard to know at the early stages of divorce proceedings. As your lifestyle outgoings could change dramatically. Depending on the outcome of your divorce different things could be cheaper or more expensive.

Let’s have a look at how different lifestyle costs could increase or decrease depending on the outcome of your divorce or separation proceedings and how this could affect your mortgage capacity assessment and ability to borrow.

For example, post-divorce you may be taking full custody of your children meaning you are unable to work full time or must change your hours to suit this new arrangement. This may result in reduced commuting costs but a lower annual salary and would need to be documented in your report as a scenario when going through court proceedings.

In laymen’s terms, your ability to borrow and the amount is driven by your affordability so anything that reduces your income or increases your outgoings could have a negative impact on your affordability amount.

At St Bart’s Finance, we work with clients every week looking into their ability to borrow after the divorce based on a range of circumstances. We do this in the form of a mortgage capacity assessment, once the assessment has been completed the team will prepare a bound copy of your mortgage capacity report with the different scenarios you have requested for you to use in mediation court proceedings and with your solicitor.

Many courts will require you to get a report carried out, but we always think it’s a good idea to plan ahead and ensure you have the knowledge about how your finance may look post-divorce if required by the court or not.

St Bart’s Finance is a financial advice and mortgage brokerage with offices in Bournemouth & Poole. We can help clients nationwide with mortgage advice and capacity reports, to speak to one of the team contact us on 01202 520 550.


Your home may be repossessed if you do not keep up repayments on your mortgage.


A mortgage capacity report is not part of the Openwork offering and is offered in our own right. Openwork Limited accepts no responsibility for this aspect of our business. A mortgage capacity report is not regulated by the Financial Conduct Authority.

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