Mortgage Capacity Report Examples 20/10/2025 – 24/10/2025
Oliver Ben Reece • October 28, 2025
This week’s mortgage capacity review looked at a client whose income currently comes from her state pension, totaling just over £9,000 per year. She also holds a 40% share in a holiday let business, but this will end once her divorce is finalised, leaving her fully reliant on her pension income. With no outstanding debts or credit commitments, her finances are relatively straightforward, though her monthly outgoings are modest at around £106 for storage.
The client jointly owns a holiday let property valued at approximately £600,000, which is due to be sold as part of the financial separation. The equity released from this sale will likely form the foundation of her future financial stability.
When assessing affordability, the figures showed that she would not qualify for any new mortgage borrowing based on current lender criteria. This is mainly due to her limited income and the loss of her business-related earnings. In cases like this, lenders focus heavily on affordability and repayment sustainability, which can be challenging with pension-only income.
The best course of action for her will be to focus on managing the proceeds from the property sale wisely and ensuring her long-term financial comfort. It’s a good reminder that even without mortgage capacity, strategic planning can still secure a stable and manageable financial future.