Mortgage Refused: AIB reason "unproven at level sought". What does this mean?

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rgar

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We applied for a mortgage and got refused. The reason AIB gave was "unproven at level sought".
What exactly does this mean?
 
I guess it means your ability to make the monthly repayment is in question. Meet with them to discuss.
 
You might find the input of a good broker helpful. Someone with experience in the area would be able to look at your application and tell you the likely issue. As MacStuff says, it is likely that you have not show the repayment capacity needed for the mortgage sought.

The bank will want to see that you can service the mortgage amount at the current SVR rate +2% (this is known as "stress testing"). So, are your current outgoings on rent + savings meeting this threshold? If not, there is your issue.

If you post up some more detailed information perhaps we can help further.
 
i have a feeling it is probably to do with an outstanding loan that i have at the moment. If this is the case my parents have offered to gift me the money to clear the loan but i didnt mention this in the application
 
The outstanding loan will make a big impact. The take the loan repayment amounts from your disposable income figures.
 
They refused my bf but he got it with UB. PTSB said to come back in six months as they could see he could afford it, but he didn't have adequate proof.
 
AIB only willing to offer 20,000 more with my loan cleared which works out as 76% of the purchase price of the house. We were hoping for at least 90%. Around 1/3 of our income exceeds the monthly cost of repayments including a 2% stress.
 
Can you do up all your income and outgoings if you want to get some proper advice. The loan and the fact your parents are paying it off for you is not a good indicator of someone able to deal with their finances but it's hard to tell from what you've posted so far.

Have you thought of applying via a different bank.

Depending on the property some banks will only give some percentages, this is particular so for apartments.
 
Our combined gross income is €58,000.
House purchased price is €210,000, its a new build.
Saving €830 pm but loan will be clear shortly so that will increase to €1250 pm.
Outgoings are usual stuff car insurance payments, phone bill, petrol etc. Not paying rent as living with parents.
One issue maybe is my other half is only 9 months in her current job but it is permanent and pensional.
 
I've been dealing with a broker from the start and he has only applied to ICS and AIB so far. ICS said no until other half employed for 12 months.
Have to meet with him later on to discuss other options and lenders. He has mentioned trying Ulster Bank but we would need to do this ourselfs as they don't deal with brokers, I bank with them too.
 
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