When it comes to understanding how much money you can borrow to buy a house, a Mortgage Capacity Report and a Mortgage in Principle can both give you answers. But while they sound similar, they serve very different purposes. Knowing which one you need depends on your situation, particularly if you’re going through a divorce or financial settlement.
What is a Mortgage Capacity Report?
A Mortgage Capacity Report is a detailed, independent assessment of how much you could realistically borrow from a lender, and what you could afford to borrow based on your outgoings and expenses. It’s most commonly used in divorce, separation, or court proceedings to demonstrate your true borrowing potential when negotiating financial settlements.
This type of report is far more thorough than a simple mortgage quote. It looks closely at your income, outgoings, financial commitments, and credit profile to show what you could genuinely borrow in today’s lending market.
Our reports are impartial and written by our mortgage capacity specialist, who understands what lenders are currently offering. They’re factual, compliant with court standards, and designed to provide clarity and confidence for you, your solicitor, and the court.
If you’re in the middle of a divorce, separation, or financial settlement, a Mortgage Capacity Report is essential. It provides a reliable and professional picture of your borrowing capacity.
What is a Mortgage in Principle?
A Mortgage in Principle (MIP), sometimes called a Decision in Principle (DIP) or Agreement in Principle (AIP), is a much simpler document. It’s a quick estimate provided by a lender showing how much they might be willing to lend you based on a few basic details.
It’s a useful step if you’re planning to buy a property, as it demonstrates to sellers and estate agents that you’re a serious buyer. However, it’s not legally binding and doesn’t provide the in-depth financial analysis needed for court or legal purposes.
The main difference between the two is purpose and depth. A Mortgage Capacity Report is comprehensive, independent, and suitable for court use. It takes a full view of your finances and reflects what you could genuinely borrow in the current market.
Why choose Mortgage Capacity Assessments?
At Mortgage Capacity Assessments, we specialise in preparing accurate, court-ready reports that make the financial side of separation simpler and clearer. With years of experience in both mortgage advice and financial planning, we understand exactly what solicitors and courts require.
If you’re facing a court case involving property or need to understand your mortgage options, obtaining a detailed and professional mortgage capacity report can be a wise step towards ensuring a fair outcome. Get in touch with us today to discuss your circumstances.
Did you know?
Our FDR Mortgage Capacity Report actually includes a Decision in Principle as standard.