mortgage advisor salary-I earn enough money to paid a mortgage monthly but I have not got the money for a deposit and by bank will only lend me 4 times my salary which is not enough to buy a house. Can i get a mortgage for the total cost of a house??
I don't know which country you're in and as the rules vary it's hard to answer. I have a financial company based in the UK so the info below is relevant only to the UK and is for guidance only.
Basically the more you borrow the more it costs - not just in the amount you pay back but in the interest rates charged. A 100% mortgage will normally attract a higher interest rate than a standard 95% mortgage - the norm in the UK is to put down at least a 5% deposit but more if possible.
There are also a limited number of lenders who are prepared to lend 100% and there are rarely special offers such as discounted rates. If you do get a discounted rate check what the tie-in period is and what penalties there are if you move, remortgage, settle up etc.
Further, you'll probably have to pay a MIG (Mortgage Indemnity Guarantee) which is a type of insurance and is generally calculated as about 7% of everything you borrow over and above 70% of the value of the property you are buying. This is a lump sum that may have to be paid up-front, in some cases it is added to the mortgage. On a £200,000 loan this means a payment of 7% of £60,000 - i.e. a premium of £4,200 that you have to pay.
I'd also be very wary about borrowing 4 times your annual salary. This is a huge commitment and you need to remember that interest rates for the last few years have been very low. A few years ago they were double what they are now (and even triple for a short time) - could you afford your monthly repayments if they doubled or even trebled?
You also need to budget for all the other costs - the removal, legal fees, disbursements, surveys, possible repairs and renovations, possible retention on the mortgage (where they hold back part of the mortgage until, for example, the property is rewired).
There may be a fee payable to the lender but if you have good credit this probably won't be the case. The sub-prime lenders (the ones who lend to people with impaired cedit), typically charge 2 or 3% of the sum advanced but this can be as high as 10%.
Bottom line - don't rush into anything, make sure you know exactly what you're paying, get clarification on anything you're unsure of and seek professional advice from a reputable company - any High Street bank or building society will be able to help you.
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