Scenario
£300k Extra Borrowing Capacity Via An RSU Mortgage
In this example scenario, a High Net Worth individual is in a dilemma requiring complex income mortgage advice. With a growing family, he and his wife have set their hearts on their "forever home" in leafy Surrey.
As an investment banker for a leading US-based institution, the client has a strong base salary, however a significant proportion of his remuneration is paid through deferred equity and Restricted Stock Units (RSU income), with differing vesting periods, volatility in value, but a strong track record.
The example client has approached mainstream lenders and mortgage brokers who failed to account for his RSU income or applied heavy discounts to his borrowing capacity, leaving him to face a £300,000 shortfall in his borrowing capacity to purchase his new home, despite robust real earnings.
How might Cleerly's specialist expertise and deep lender relationships help the family move home?
How considering RSU income (properly) unlocks additional borrowing
Access Your Full Borrowing Potential
Incorporating this client's RSU income can transform his borrowing potential. By leveraging his total remuneration package, rather than just salary, the following options present themselves:
- Boost Borrowing Power: Potentially increase affordability by 30–50%
- Access Premium Properties: Qualify for larger loans, allowing him to consider homes that might otherwise have been out of reach
- Secure Better Rates: Demonstrate a strong total income profile to unlock competitive rates from private banking institutions
Vested Versus Unvested Stock Units
Unvested RSUs (shares you haven’t earned yet) typically aren’t considered immediate income since they’re not guaranteed.
However, some specialist lenders may review your vesting schedule to assess the sustainability of your income, particularly if you have a strong vesting history at a stable public company.
Cleerly's experience in advising High Net Worth Individuals and our deep network of lender relationships allow us to maximise your borrowing potential.
Would full RSU income value be counted?
In this example, our prospective client was concerned whether lenders would include his full RSU allocation when calculating his borrowing capacity.
The outcome of this scenario depends on the lender and your broker's expertise in presenting a clearly structured proposal.
Some lenders use 100% of your average RSU income, while others may cap it at 50–75%. Lenders may also apply a "haircut" (essentially, a percentage deduction) to account for market volatility or exchange rate fluctuations if your shares are in a foreign currency.
Specialist Expertise is Essential
As RSU policies vary significantly between lenders, a generic "salary-only" approach can substantially undercut your borrowing power. A specialist broker like Cleerly can:
- Identify which lenders accept up to 100% of RSU income
- Structure your application to highlight your total wealth
- Navigate complex documentation to prevent delays
- Connect you with specialist lenders that offer tailored terms for high-net-worth individuals