RSU Mortgages: Turning Equity Awards into Borrowing Power
DIRECTOR AND MORTGAGE ADVISER
Specialist broker for high-earning professionals and complex income cases.
If a big slice of your pay comes from restricted stock units (RSUs) or equity awards, a standard mortgage approach may undercount your earnings. The good news: with the right lender and documentation, RSUs can meaningfully increase borrowing power. Below, we explain how lenders assess equity income and how to package your case for the best result.
Treatment varies widely. Some lenders won’t use RSUs at all; others will include vested and realised stock, and a few will take a view on upcoming vesting.
Evidence beats assumptions. Expect to evidence 2–3 years of regular vesting/sales where possible, plus current vesting schedules and brokerage statements.
Risk adjustments apply. Lenders may average past equity income and/or apply a haircut (especially for foreign‑currency proceeds) to reflect market and exchange rate risk.
High‑earning professionals may qualify for higher LTIs. In strong profiles, some lenders offer up to 5.5× income subject to affordability, LTV and credit.
Interest‑only can help manage cash flow. Often available on a capped LTV with a credible repayment plan (e.g., investments, future equity income).
Request your fee free mortgage consultation today. No obligation, just sound advice.
How Lenders Actually View RSU Income
1) Vested vs. unvested
Vested & sold shares are most straightforward—some lenders treat the cash proceeds as variable income and average them over the last 2–3 years.
Vested but unsold shares may be discounted or ignored unless you can demonstrate a pattern of selling to generate income.
Unvested awards are typically excluded from income (though future schedules can support a holistic assessment with select lenders).
2) Consistency & sustainability
Underwriters look for a repeatable pattern: regular vesting events, stable employer, and a forward schedule that suggests continuity. A sudden jump (e.g., a one‑off mega‑grant) is often scaled back in affordability models.
3) What documentation to prepare
Full vesting schedule(s) and grant docs (including cliff/intervals)
Brokerage statements evidencing stock receipt/sales and net proceeds
Payslips/P60s and annual comp statements showing equity values
Employer/HR letter if structure changed (e.g., new grant policy)
12 months’ bank statements showing RSU sale proceeds credited
Pro tip: Align sale timings with your application—having clean, recent statements showing proceeds in GBP can simplify assessment.
How We’ve Helped Clients Like You
These clients faced similar challenges - here’s how we helped them secure the right deal.
What Different Lenders May Do
Some high‑street lenders exclude RSUs entirely (they’ll rely on base/bonus only).
Others will count vested and sold RSUs as income, usually by averaging the last 2–3 years’ realised proceeds.
Specialist/private banks can be more flexible—considering equity as part of total compensation and future wealth—though they may require a broader relationship.
Exact treatment varies by lender, product, LTV and your profile. We’ll map the right route once we’ve reviewed your paperwork.
Structuring The Application: Three Smart Ways
A) Base salary first, RSUs as “plus”. Use base to pass stress tests, then add a conservative proportion of averaged RSU income to lift borrowing where allowed.
B) Part & part (capital + interest‑only). Where acceptable, split the loan so monthly payments stay efficient and lumpier RSU income can make planned capital reductions.
C) Deposit strategy. If selling RSUs to raise deposit, keep a clear audit trail from brokerage to your bank and evidence source of funds early.
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Get in touch for a fee free, no-obligation chat about how we might be able to help you.
Foreign‑Currency Equity (USD/EUR) And Foreign Exchange Haircuts
If your employer stock is USD‑denominated, many lenders will convert proceeds to GBP and apply a haircut in affordability models. Haircuts vary by lender; your overall borrowing may be calculated on a reduced GBP figure.
Typical Pitfalls (And How To Avoid Them)
Relying on unvested stock. Focus on what’s vested/realised and be realistic about future schedules.
No sale history. If you’ve never sold, show a credible plan (and why holdings are liquid if needed).
Messy paper trail. Keep statements tidy and consistent—underwriters follow the money.
Switching employers mid‑process. Expect extra scrutiny if grant policies or vesting cadence change.
What Our Clients Say
How Kite Mortgages Helps
Pre‑underwrite your equity story—what’s vested, what’s repeatable, and what’s noise.
Match you to the right lender—from high street (where criteria fit) to private banks for larger or more complex cases.
Design the structure—including part interest‑only, term length, and timing around vesting to optimise affordability and cash flow.
Request your fee free mortgage consultation today. No obligation, just sound advice.
FAQs
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No. Some exclude them; others will use vested and sold RSUs with suitable evidence.
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Often 2 years of realised proceeds; some will consider 1 year with strong overall profile.
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Usually no for income—though future schedules can support a case with certain lenders.
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Yes—once sold and the funds are in your account with a clear audit trail.
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Potentially—strong applicants can access up to 5.5× where policy allows and overall affordability stacks.
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Often on a capped LTV and with a credible repayment plan (e.g., investments or future equity income). Lenders will still stress test affordability.
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APPROVED BY THE OPENWORK PARTNERSHIP ON 19/09/2025.