Some lenders will accept restricted stock unit (RSU) income towards a mortgage, but they treat it differently from basic salary. Because RSUs vest over time and their value moves with the share price, lenders usually want a track record of vesting and often use a proportion of the average value rather than the full amount.
What are RSUs?
Restricted stock units are a form of equityThe difference between the value of the property and the amo... More compensation. Instead of cash, your employer grants you company shares that “vest” – become yours – on a set schedule, often over several years. Once vested, the value usually appears on your payslip or in a separate share-plan statement. Many employees at listed technology and finance firms receive a meaningful part of their total pay this way.
Why lenders treat RSUs cautiously
Lenders assess RSU income more carefully than salary for two reasons. First, the value is variable – it rises and falls with the share price. Second, it is conditional – future vesting depends on you staying with the employer and on the scheme continuing. Unlike a guaranteed basic salary, neither the amount nor the continuation is certain, so lenders build in a margin for that.
How lenders assess RSU income
Approaches vary between lenders, but common patterns include:
- Requiring a history of vesting, often two or more years.
- Averaging recent vests rather than relying on the latest one.
- Applying a reduction to allow for share-price movement.
- Considering whether further vesting is scheduled to continue.
Because these rules differ so widely, the lender you approach matters as much as the figures themselves.
Evidencing RSU income
Clean, consistent paperwork makes an RSU case far easier to place. Be ready to provide vesting statements, broker or share-plan statements, payslips showing the income, your employment contract or scheme documents, and a P60. Where the income shows up in more than one place, make sure the figures reconcile.
Combining RSUs with salary and bonus
RSU income is usually considered alongside your base pay and any bonusIncome received as a bonus, which may affect a borrower's ab... More in an affordability assessment. Where one lender discounts RSUs heavily and another is more accommodating, a whole-of-market view helps you see the full picture rather than being limited to a single lender’s rules.
Getting advice
Independent, FCA-regulated advice helps match an applicant with equity compensation to a lender comfortable with it, and to present the income the way that lender expects. Our advice is no-obligation – you can read more about Damian Youell or visit our mortgage advice hub.
Speak to an adviser
Send a few details below and we’ll be in touch to talk through how your RSU income could support a mortgage application. There’s no obligation, and any advice is independent and FCA-regulated.