£2.5m Mortgage Using RSUs and Vested Stock Bonus Income

Scenario

Restricted Stock Unit Mortgage

A Senior Vice President from a leading global technology firm is seeking assistance to purchase a £4 million family residence in London. While their base salary was highly competitive, a significant share of their total yearly earnings come from Restricted Stock Units (RSUs), shares granted to them as part of their compensation package, vesting at 25% per annum, allied to notable performance-based bonuses.

Unfortunately, several mainstream mortgage lenders expressed reluctance to fully consider these income types, because they view them as too complex or variable, limiting the client’s borrowing capacity despite their strong financial standing. This scenario often affects professionals in the tech industry.

Andrew is very knowledgeable, prompt and very professional. Courteous, sharp and inventive, Andrew got my mortgage sorted twice in times when it was quite difficult to arrange one. The main thing though is Andrew is very confident and reliable and always delivered on his promises.

I was impressed by the service provided by Olivia and team, after some initial discussions Oliva provided sound advice and discussed all options. She talked me through the process, so it was clearly understood and sourced a good deal. Updating me on a better option when one arose whilst I was in the process of completing application documents etc. Olivia was quick to answer any questions I had and to also handle any issues with the Lender making life very easy for me. The whole process was smooth from start to finish.

Fantastic service from start to finish, responsive, understanding and helpful all the way through the process. The company is fantastic and cares about your needs and helps every step of the way. Amazing service from Dil a real credit to the company. Would recommend this company again and again.

I’d also like to thank Simon J for providing clear and competitive quotes for financial protection. His advice really highlighted how crucial this cover is and helped me make informed decisions for the future.

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Cleerly's RSU Mortgage Service

How might Cleerly’s specialist brokers approach this situation to achieve a client-focused outcome?

At first glance, the income streams appear straightforward. However, there are several components with varying levels of complexity:

A reliable base salary, substantial but not sufficient on its own for the necessary borrowing amount

An annual cash bonus, subject to variation but paid steadily for the past five years

Quarterly vesting RSU awards, regularly contributing a significant portion to the total compensation

Despite substantial total earnings, lenders often assess and value each income component differently. Many institutions approach stock and bonus-based incomes cautiously. Some disregard vested RSUs entirely, while others cap the considered variable income based on basic salary.

In this example, the combined RSU and bonus payments far surpassed the base salary. Relying on a lender that recognises only the base would greatly restrict their mortgage options and property choices. Securing a lender willing to take a comprehensive view, factoring in the consistent history and reliability of their RSU and bonus income, is crucial.

Additionally, in this example, the client expresses a preference for an interest-only mortgage structure for greater monthly payment flexibility, given the variable nature of much of their income. Not all lenders that accept RSU income offer such flexibility regarding interest-only terms, which introduced another layer of complexity.

What documents are required to qualify for an RSU Mortgage?

To demonstrate a client's RSU income to a lender, we require the following documents:

Vesting Schedule: A document from a client’s employer outlining future release dates and share volumes.

P60s: A client’s last two years' P60s to show total taxable income.

Brokerage Statements: Records showing past stock sales and proceeds received.

Award Letters: Evidence of a client’s RSU grants.

Standard Documents: A client’s latest three months of payslips and bank statements.

The Solution

Leveraging Cleerly's established relationships across Private Banks and Specialist Lenders, we would seek to identify financial partners experienced in serving senior executives and high-net-worth clients whose incomes fall outside standard lending parameters.

In this example we would be presenting to lenders and negotiating to achieve (for illustrative purposes):

Approval for a £2.5 million mortgage facility

Full acceptance of vested RSU income and recognition of 75% of annual bonus earnings

A flexible interest-only mortgage, allowing overpayments when bonuses were received

Competitive interest rates suited to the client’s strong financial profile

Cleerly - Bespoke Mortgage Advice for High Net Worth Clients

As RSU policies vary widely between lenders, a generic "salary-only" approach can severely undercut your borrowing power. A specialist broker like Cleerly can:

Identify which lenders accept 100% of RSU income.

Structure your application to highlight your total wealth.

Navigate complex documentation to prevent delays.

Connect you with Private Banks that offer bespoke terms for high-net-worth individuals.

By carefully evaluating our client’s unique situations and understanding the nuances of RSU and bonus income, we are typically able to unlock their full borrowing potential, empowering them to secure their desired home with complete peace of mind.