In industries like technology, consulting, and finance, total compensation often goes far beyond a basic salary. Many professionals receive Restricted Stock Units (RSUs) and bonuses as a key part of their earnings. While these can be financially rewarding, they can also make mortgage applications more complex, especially when lenders don’t fully understand or recognise these income types.
This article explains what RSUs are, how lenders view them, and how to strengthen your mortgage application if your income includes RSUs or bonuses.
What Is an RSU?
A Restricted Stock Unit (RSU) is a form of company share granted to an employee as part of their compensation package. Unlike stock options, RSUs are given without requiring you to buy them, but you don’t own or control them immediately. They come with certain restrictions, which lift over time as the shares “vest.”
These restrictions usually include:
- Vesting schedule: You gain ownership gradually, often over several years (e.g. 25% per year).
- Ownership: Until your RSUs vest, you don’t actually own the shares or have the right to sell them.
- Taxation: When RSUs vest, their market value is treated as income and taxed through payroll.
- Potential growth: Once vested, you own the shares outright and can benefit from any rise in the company’s share price.
How lenders view RSU income
Not all lenders treat RSUs the same way. Some lenders won't consider RSUs at all. Some see them as a bonus-style income that can fluctuate and therefore take a cautious approach. Others, particularly those familiar with tech and finance compensation, will consider RSUs as part of your assessable income.
- A history of RSU vesting - Shown through RSU vesting statements, brokerage account records, or payslips where RSU income has been recorded.
- A clear vesting schedule showing future income - Found in your RSU award or grant letter from your employer, outlining vesting dates and quantities.
- Evidence that RSUs are a regular part of your compensation, not a one-off grant - Supported by multiple historical grant letters, employer confirmation letters, or annual compensation summaries showing recurring awards.
- Payslips or tax documents showing RSU income already received - Usually your P60 showing total taxable income including vested RSUs will suffice.
Every lender is different, so it’s best to speak with an RSU specialist mortgage broker who can advise on exactly what documentation you’ll need to support your application.
When calculating affordability, lenders usually include a proportion of your RSU, bonus, or commission income, typically between 50% and 100% of the average earned over the past two to three years. The exact percentage depends on the lender’s policy and how consistent your income has been.
Regular, predictable payments supported by clear documentation are more likely to be accepted in full. In contrast, one-off or highly variable income is often discounted to reflect potential fluctuations.
It’s also important to note that unvested RSUs, shares you haven’t yet earned are rarely counted, as they aren’t guaranteed until vested.
How RSUs and Bonuses Can Strengthen Your Mortgage Application
Handled correctly, RSUs and bonuses can massively increase your borrowing power. By demonstrating that these income sources are consistent and ongoing, you can potentially access a larger mortgage or better terms than if only your base salary were considered.
A broker who specialises in RSU and variable income mortgages can identify lenders that:
- Accept RSU income as part of affordability
- Use a higher percentage of bonus income
- Understand how tech and finance compensation packages work
- Offer tailored mortgage options for contractors or high-earning professionals
Common Challenges
- Limited lender understanding: Many mainstream lenders don’t have clear policies on RSUs.
- Income volatility: RSU values can fluctuate with the company’s share price.
- Short history: If your RSUs have only recently started vesting, you may need to wait until you have more history.
- Unvested shares: Future RSUs are not guaranteed and usually can’t be used in affordability calculations.
- Foreign currency RSUs: Many tech employees receive RSUs paid in US dollars, and some lenders may not recognise or discount this income due to exchange rate fluctuations.
This is why working with a specialist mortgage broker can make a big difference, helping you position your case clearly to underwriters who understand these income types.
Make RSUs and Bonuses Work for You
If you work in tech, consulting, or finance with RSUs or bonus income, your pay structure can be both a strength and a complication when applying for a mortgage.
To make the most of it:
- Keep clear records of all RSU and bonus income.
- Use a broker experienced in RSU and variable income mortgages to find lenders who understand your earnings profile.
Your RSUs and bonuses are a valuable part of your financial picture. With the right preparation and guidance, they can work for you, not against you when securing your next home.
At Limitless, we work with a wide range of clients, from those just starting to receive RSUs to those well into their vesting schedules looking to make their money work harder. No matter where you are in your career, it’s always worth speaking to one of our advisors. Contact us to find out more.
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