Wednesday, September 1, 2010
Oh another reason for house prices to drop
Millions of self-employed people could be shut out of the property market because banks are using their lowest annual income to decide if they can afford a mortgage. Using the lowest rather than the average income over three years can have disastrous consequences, as the incomes of many self-employed people can vary hugely â€” or they might have had one particularly bad year. The restrictions could leave them unable to find a new mortgage or buy a new home.