27-01-2026
Key Points Summary
- Restricted Stock Units (RSUs) and vested stock income can significantly increase mortgage affordability when properly presented to lenders.
- Only a limited number of mortgage lenders accept RSU income, and their treatment of such income varies widely.
- Lenders typically require a consistent history of RSU income for at least two to three years, along with supporting documentation such as vesting schedules and compensation statements.
- Specialist lenders and private banks often have more flexible criteria for assessing RSU income compared to mainstream high street banks.
- RSU income is usually assessed alongside basic salary and cash bonuses rather than on a standalone basis.
- Factors influencing lender assessment include the financial health of the employer, length of employment, consistency of vesting schedules, and stock price volatility.
- RSUs may also be considered as part of the deposit in some cases, subject to lender policies.
- Working with a specialist mortgage broker experienced in equity compensation can improve the chances of a successful mortgage application using RSU income.
Introduction
This page provides a comprehensive guide on how to use Restricted Stock Units (RSUs) and restricted stock income to enhance your mortgage affordability. If you are a professional in the technology or finance sectors receiving a significant portion of your compensation through equity awards such as RSUs or vested stock, this resource is designed specifically for your needs.
Understanding how mortgage lenders assess RSU and restricted stock income is essential. By effectively leveraging your equity compensation, you can increase your borrowing power, access a broader range of mortgage options, and secure more favourable mortgage terms. Whether you are a first-time buyer or seeking to move up the property ladder, presenting your RSU income properly can substantially impact your mortgage journey.
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Using Restricted Stock Income & RSU for Mortgage Affordability Purposes
Restricted Stock Units and vested stock income can be included in mortgage affordability calculations to significantly increase your borrowing power. When these income streams are properly documented and assessed, mortgage lenders may include them as part of your total qualifying income.
However, only a limited number of lenders consider RSU income for mortgage purposes, and the way they treat this income varies considerably. This variation directly affects the amount you can borrow.
Mortgage lenders will carefully review your vesting schedule, compensation statements, and bank statements that show the liquidation of stock units when assessing RSU income. They evaluate this income alongside your basic salary and any cash bonuses, rather than as a standalone source.
The documentation lenders typically require includes RSU grant and vesting schedules, payslips, tax forms (such as P60s), and verification of employment. Lenders may use the current share price or an average share price over a specific period to assess the value of your RSU income.
Generally, lenders consider between 50% and 100% of your RSU income in affordability calculations. This percentage depends on factors such as the financial health of your employer, the length of your employment, and the consistency of your vesting schedule. Most lenders require a history of consistent RSU income for at least two to three years before including it in mortgage applications and may apply a ‘haircut’ to account for potential stock price volatility.
Specialist lenders often apply more flexible criteria when assessing RSU income compared to mainstream or high street lenders. Most high street banks lack clear policies regarding RSU income. The overall income profile, including the proportion of total income derived from stock units, also influences lender assessments. Some lenders may permit the use of RSUs as part of the deposit, depending on their policies.
Engaging a specialist mortgage broker with experience in equity compensation can help you navigate these complexities and identify lenders willing to consider your vested stock and RSU income favourably.
To discuss your funding requirements, call 03300 100313 or email enquiry@foxdavidson.co.uk.
Why Use Vested Stock & RSU Income for Your Mortgage?
Incorporating RSU income into your mortgage application allows you to maximise your mortgage eligibility by leveraging your total compensation package, not just your base salary. The following points explain how RSU income can transform your mortgage affordability calculations:
- Boost Your Borrowing Power: Including up to 100% of your RSU income can increase your mortgage affordability by 30-50%, enabling access to larger loan amounts.
- Leverage Your Total Compensation: Many investment banks and global firms offer substantial equity compensation packages, including RSUs and stock options. Lenders assess RSU income as part of your overall income stream, alongside basic salary and cash bonuses.
- Access Premium Properties: Higher mortgage affordability calculations enable you to consider better locations and larger homes that might have been previously unaffordable.
- Faster Mortgage Approval: Specialist and boutique lenders familiar with vesting schedules can streamline the mortgage process for applicants with equity compensation.
- Most Competitive Interest Rates: A strong total income profile often qualifies you for better mortgage rates and terms from private banks and lending institutions.
Bonus income and cash bonuses are also considered by lenders when there is a consistent history. RSU income is evaluated similarly as a predictable income stream when properly documented.
Unlike stock options, RSUs provide predictable income streams that mortgage lenders can assess for qualifying income once properly documented.
What Makes RSU Mortgages Different?
RSU mortgages differ from conventional mortgage applications due to the complexity of stock-based compensation. The following factors distinguish RSU mortgages:
- Specialist Lender Network: Access to private banks, boutique lenders, and lending institutions that actively accept RSU income and understand vesting schedules. Specialist lenders usually have more flexible criteria for RSU income assessment compared to mainstream lenders.
- Complex Income Assessment: Professional evaluation of stock unit compensation, vesting patterns, and foreign currency conversions ensures accurate mortgage affordability calculations.
- Higher Net Worth Treatment: Recognition of your total compensation package, including unvested stock holdings and performance milestone achievements, such as meeting sales targets.
- Tech & Finance Industry Expertise: A deep understanding of equity compensation issued by major employers and how each company’s stock compensation structure affects mortgage eligibility.
Flexible lenders and other lenders may apply different criteria for accepting company stock and RSU income. The treatment of RSU income varies significantly between lenders, influencing the amount you can borrow.
What Our Clients Are Saying
Here are verified testimonials from professionals who maximised their mortgage potential using restricted stock units (RSUs):
- “I thought I could only borrow based on my basic salary, but including my vested stock income increased my mortgage by £200,000. The specialist mortgage broker understood my vesting schedule perfectly.”
- “Unlike other mortgage advisers, they knew exactly how to present my RSU income to lenders. Got approved for a larger mortgage with competitive interest rates in just 3 weeks.”
- “My compensation package includes a significant portion of stock units, and not all lenders would consider them. This team found lenders who accept bonuses and RSU income at full value.”
- “The mortgage process was seamless. They handled all the complex documentation around my vesting schedules and foreign currency compensation.”
📞 Call for immediate expert advice. 💻 Complete our enquiry form 📧 Email outline your requirements
Mortgage Options for RSU Income
Mortgage lenders with varying policies accept RSU income. Below is a detailed overview of the types of lenders and their typical approaches:
High Street Banks
Major lenders such as Santander and Barclays may accept RSU income if there is a two or more year vesting history, offering competitive rates. However, most high street banks lack clear policies for RSU income and often treat it as non-standard.
UK Mortgage Lenders
Only a limited number of UK mortgage lenders consider RSU income for mortgage eligibility. This is particularly relevant for first-time buyers seeking to use RSU income. Eligibility typically depends on a history of vesting and stable employment.
Private Banks
Private banks provide premium services for high net worth individuals with complex non-cash compensation structures and international equity awards. Vested RSUs can be used for mortgage qualification, provided you demonstrate the vesting schedule and fair market value.
Building Societies
Employ a holistic affordability approach that considers overall income, including bonus paid income and vested shares, to offer generous mortgages.
Specialist Lenders
Boutique lenders focus exclusively on equity compensation mortgages with flexible criteria for various vesting schedules, including applicants on fixed-term contracts. These lenders may be more willing to accept RSU income than most high street banks.
Interest Only Mortgages
Some lenders offer interest-only mortgage options where eligibility requires a credible repayment plan. RSU income may be considered for these products, especially if the RSUs are issued by well-established companies.
Foreign Currency Considerations
If your RSU compensation is paid in foreign currencies such as US dollars or euros, lenders will assess currency stability and may impose specific requirements for loan qualification.
Monthly Payments
The difference in monthly payments between interest-only and repayment mortgages can be smaller than expected. RSU income influences your payment structure and overall affordability.
The most popular choice among borrowers are specialist lenders who understand that vesting typically occurs quarterly or annually and can assess future income streams accurately.
Frequently Asked Questions
This section addresses common queries related to using RSU income for mortgage applications:
Some specialist lenders consider future vesting schedules in affordability calculations, especially for employees with established vesting patterns at publicly traded companies. However, some lenders may apply a ‘haircut’ on foreign-currency RSUs to account for exchange-rate fluctuations.
Selling RSUs is not necessarily required. While bank statements showing liquidation history strengthen applications, many lenders accept bonuses and stock compensation based on vesting schedules alone. Documentation such as RSU grant and vesting schedules, payslips, tax forms (P60), and employment verification remain necessary.
Most lenders use average share values over 12 to 24 months to smooth fluctuations, assessing affordability based on historical rather than current stock prices. They evaluate the financial health and stability of the company issuing the RSUs and may apply a ‘haircut’ to account for volatility.
Yes, provided proper currency conversion documentation is submitted. Many global firms issue equity compensation in USD or EUR, which specialist mortgage brokers routinely handle for UK mortgage purposes.
Lenders review your complete compensation history, including bonus paid and equity compensation awarded historically, plus future vesting schedules to assess ongoing income streams.
Including vested stock income generally improves your debt to income ratio significantly, as it adds substantial qualifying income without additional debt obligations. Lenders also consider the financial health of your employer when assessing RSU income for mortgage applications.
Maximise Your Mortgage Potential Today
Traditional lenders may limit your home buying power to just your basic salary. Unlock the hidden value in your total compensation package with specialist mortgage advice that understands restricted stock units (RSUs) and equity compensation.
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