Share-based compensation such as RSUs, options, and performance shares can be tricky for mortgage affordability in the UK because it is often variable, depends on vesting schedules, and may not be guaranteed. Some lenders will not treat RSUs as standard income, while others may consider them in a limited or conservative way, particularly in high net worth lending where the wider financial picture is strong.
How lenders typically look at share-based pay:
- As income: in some cases, where there is a clear history of vesting and a stable pattern, a lender may consider an averaged figure (often conservatively).
- As an asset: if shares are already vested and held, lenders may view them as part of your asset base rather than ongoing income.
- With restrictions: unvested awards are often treated as uncertain and may not be counted.
Evidence matters. Lenders may request payslips, P60s, award statements, vesting schedules, and sometimes brokerage statements if shares are held and liquid. They will also consider tax treatment and whether realised proceeds are consistent.
If RSUs form a significant portion of your total compensation, the application needs to be matched carefully to lenders who understand and accept that structure. Often, the most reliable approach is to base affordability on provable core income and use share-based compensation as supporting strength rather than the sole foundation.
Hearthstone Mortgages (trading name of Hearthstone Advisory Limited)
Tel: 01753 463391 | Email: enquiries@hearthstonemortgages.co.uk
Registered office: Europa House, Marsham Way, Gerrards Cross, Buckinghamshire, SL9 8BQ
Company No: 10563329 | FCA FRN: 945282
Warnings:
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