RSU income mortgages
Why choose us
As a specialist RSU Income mortgage broker, Cleerly has the experience and expertise to help you turn your RSU income into homeownership. Fill in our online form to request a call back or speak to a member of the team today on 02394 212912.
Introduction
What are restricted stock units?
Restricted Stock Units (RSUs) are a non-cash form of renumeration granted to employees by their employers. RSUs are different from stock options in that employees are not required to pay for the shares and the shares aren't vested instantly. Rather, these shares are subject to restrictions and vest over time, or upon hitting specific performance objectives. This is known as the vesting schedule.
What to consider
Do RSUs count as income for mortgages?
RSUs can count as income for mortgages, but this is still fairly uncommon in the UK. The few lenders who do accept RSUs will have their own set criteria and valuation methods. Some of the factors that lenders may look at when evaluating your RSU income are:
- The vesting schedule and history of your RSU income (ideally at least two years’ worth)
- Your personal credit history and score
- The percentage of your total income that comes from RSUs
- The amount of cash reserves you have after vesting
- The current macro environment
RSU income may help you qualify for a higher mortgage amount and lower your debt-to-income ratio, which are key factors that lenders consider when assessing your affordability. However, you may need to provide additional documentation and evidence, similar to a contractor mortgage, to support your application, such as:
- Employment Contract
- Payslips
- P60
- Details of your RSU income
- Vesting Schedule
What to consider
Do mortgage lenders consider RSUs?
Some mortgage lenders will consider RSUs for mortgage eligibility, but not all of them. This is why it is essential to enlist the services of a mortgage broker who specialises in RSU income mortgages and can access a wide range of lenders who accept RSU income.