How to find the best mortgage deal when you're self-employed

Finding the best mortgage deal may require some additional effort when you are self-employed compared to traditionally employed. Lenders often scrutinize self-employed applicants more closely due to variable income and potential financial risks. 

Here are some steps to help you find the best mortgage deal:

1. Organise your financial documents: Gather all necessary documents demonstrating your income and stability. These may include tax returns (both personal and business), bank statements, and any other relevant documents. Having organized and up-to-date records will help streamline the application process.

2. Determine your affordability: Assess your financial situation and calculate how much you can afford to borrow. Consider your current income, expenses, and any potential fluctuations in your earnings. Lenders will want to ensure that you have sufficient income to cover mortgage payments.

3. Build a strong credit history: Maintain a good credit score by paying bills on time, reducing existing debt, and avoiding new credit applications. A higher credit score will enhance your chances of securing favorable mortgage terms and interest rates.

4. Research lenders: Shop around and research different lenders who offer mortgage deals suitable for self-employed individuals. Look for lenders experienced in working with self-employed applicants or those who specialize in flexible lending criteria.

5. Seek professional advice: Consider using a mortgage broker or financial advisor experienced in dealing with self-employed individuals. They can provide personalized guidance and help you navigate the mortgage market more effectively.

6. Demonstrate a consistent income pattern: Lenders prefer to see a consistent income pattern. If your income has been fluctuating, provide additional documentation or explanations to help the lender understand the reasons behind the fluctuations and show that your income is stable over time.

7. Save for a larger deposit: A larger deposit can improve your chances of securing a better mortgage deal. Consider saving for a higher deposit to get access to more deals and reduce the amount you’ll need to borrow

8. Be prepared for additional checks: As a self-employed applicant, lenders may conduct additional checks to verify your income and financial stability. Be prepared to provide further documentation or answer any queries they may have promptly.

Remember that the mortgage market is constantly changing, and it's important to stay up-to-date with current rates and offers. By being proactive, organized, and seeking professional advice when needed, you can increase your chances of finding the best mortgage deal as a self-employed individual.