.png)
If you receive RSUs (Restricted Stock Units) or bonus income as part of your compensation package, you may wonder how this affects your ability to borrow for a mortgage. While RSUs are not always considered guaranteed income, with the right strategy, they can significantly improve your borrowing potential. Here’s how to maximise their impact when applying for a mortgage in the UK.
Understand How Lenders View RSU Income
Most UK lenders assess mortgage applications based on regular, sustainable income. RSUs and bonuses, being variable, are sometimes treated differently than your base salary.
- Consistency matters: Lenders are more likely to consider RSU income if it has been awarded over multiple years. Typically, 2–3 years of RSU income history strengthens your case.
- Vesting schedule: RSUs are only typically recognised when they vest. So, unvested RSUs generally won’t count towards borrowing power.
- Realised vs unrealised: Some lenders will only count RSUs once they are converted to cash (i.e., after selling shares). Others may take anticipated vesting into account if it’s documented and consistent.
Understanding these nuances is crucial for positioning your application to lenders in the most favourable way.
Work With a Mortgage Advisor Experienced in RSUs
Not all lenders handle RSU or bonus income the same way. By working with a mortgage advisor who understands high-earning professionals and variable income streams, you can:
- Identify lenders most likely to consider RSUs favourably
- Strategically structure your application for maximum borrowing potential
- Avoid common pitfalls, such as assuming unvested or projected RSUs automatically count
A knowledgeable advisor can help ensure your RSU income works for you, rather than being a hurdle in your mortgage application.
Include RSU Income in Your Affordability Assessment
Lenders calculate affordability based on income relative to monthly repayments. To leverage RSUs:
- Document your history: Gather evidence of past RSU awards and their realised value.
- Project future income: Some lenders allow projected RSU income to be included if it is likely to vest within 12–18 months.
- Highlight bonuses: If your RSUs are part of a broader bonus structure, make sure this is clearly presented to show stable total remuneration.
Including this additional income can increase your maximum mortgage amount without affecting your debt-to-income ratio.
Time Your Mortgage Application
Strategically timing your mortgage application can make a meaningful difference to your borrowing potential. Lenders are generally more confident including RSU income that has already vested, so submitting your application soon after vesting can help maximise your borrowing power.
If your RSUs are linked to bonus payments, aligning your application with these high-bonus periods can further strengthen the income lenders consider. Even for RSUs that are set to vest in future months, some lenders may take forward income projections into account, provided the vesting schedule is confirmed and documented.
By planning the timing of your application carefully, you can optimise your borrowing potential without changing your underlying financial position.
Keep RSU Income Well-Documented
To make the most of RSU income in a mortgage application, clear documentation is essential. Lenders want to see that your RSUs are a reliable, verifiable part of your compensation. Useful documents include:
- A clear vesting schedule showing future income – Usually found in your RSU award or grant letter from your employer, outlining vesting dates and quantities.
- Evidence of recurring RSU awards – Multiple historical grant letters, employer confirmation letters, or annual compensation summaries can show that RSUs are a regular part of your pay, not a one-off grant.
- Payslips or tax documents showing realised RSU income – Your P60, for example, will show total taxable income including vested RSUs.
- Records of share sales – Some lenders will only consider cash proceeds once RSUs are converted, so keeping a clear log of sales can help strengthen your application.
By maintaining thorough documentation, you make it easier for lenders to recognise RSUs as part of your borrowing capacity, helping you maximise your mortgage potential.
RSU income can be a powerful tool to increase your mortgage borrowing potential, but only if it’s handled strategically. By understanding how lenders view RSUs, including them appropriately in your affordability assessment, timing your application carefully, and keeping thorough documentation, you can make the most of this flexible income stream. With the right approach, RSUs can move from being a complex variable to a clear advantage in your mortgage journey.
At Limitless, we specialise in helping professionals with RSU and bonus income navigate the mortgage process with confidence. We understand the nuances of variable income and work closely with lenders who recognise the value of RSUs. Our team provides personalised guidance, ensuring your application is structured to maximise borrowing potential while avoiding common pitfalls. Contact us to find out more.
