Question 1

Can RSU or LTIP income count towards a mortgage in the UK?

Accepted Answer

Yes — RSU (Restricted Stock Unit) and LTIP (Long-Term Incentive Plan) income can count towards a mortgage, but lenders treat it inconsistently. Some mainstream lenders will include equity award income in their affordability assessment; others exclude it entirely or cap the amount they will recognise. The key variables are: (1) whether the awards have vested and been paid as cash or shares, (2) how long you have been receiving the income, (3) whether the income is recurring or likely to continue, and (4) whether the awards are tied to performance conditions that may not be met. Lenders who are comfortable with complex income generally require a two-year track record of RSU or LTIP receipts evidenced on P60s and payslips, and will typically use an average of the last two years to calculate the income they will include.

Question 2

How do lenders calculate RSU income for mortgage affordability?

Accepted Answer

Most lenders that include RSU income in affordability calculations use one of three approaches. The most common is a two-year average: they add the RSU income shown on your P60s for the past two tax years and divide by two. If the income is rising year-on-year, they may use the most recent year's figure; if it has fallen, they will typically use the lower figure or the average. Some lenders apply a haircut — accepting 80% or 100% of the average rather than the full amount — to account for the volatility risk. A minority of lenders will accept RSU income on the basis of a single year's evidence if your employer is a listed company and the grant schedule confirms ongoing award cycles. Stock options that are not yet vested or exercised are almost never included, as the income is not yet realised.

Question 3

What evidence do I need to prove RSU or LTIP income for a mortgage?

Accepted Answer

Lenders typically require a combination of the following documents to evidence RSU or LTIP income: (1) P60s for the last two tax years showing the total income received, which should include vested RSU or LTIP payments if processed via PAYE; (2) payslips for the last three to six months, showing any RSU vesting events or LTIP payments in that period; (3) a current employment contract or written evidence of the award schedule from your employer (such as a grant letter or total compensation statement), which confirms the programme continues and your current grant value; and (4) broker-supplied commentary explaining the nature of the income. If RSU income is paid via the broker's sale mechanism (i.e. shares are sold immediately at vest and cash is deposited into your account), your brokerage statements showing the transactions may also be required.

Question 4

Do all UK mortgage lenders accept RSU income?

Accepted Answer

No — lender appetite for RSU and LTIP income varies significantly. Many high-street lenders have underwriting criteria that confine 'employment income' to salary and contractual bonus, and will not include equity awards in their affordability assessment. Lenders with more flexible manual underwriting — including certain building societies, specialist lenders, and private banks — are more likely to consider RSU and LTIP income on its merits. Employer profile matters: if you work for a FTSE 100, S&P 500, or other well-known listed company, lenders may be more comfortable with the stability of your equity programme than if you work for a pre-IPO startup (where vesting depends on a liquidity event). A whole-of-market specialist broker can identify which lenders currently have appetite for your specific income structure and employer type.

Question 5

Do unvested RSUs or unexercised stock options count towards a mortgage?

Accepted Answer

Unvested RSUs and unexercised stock options are almost never included in mortgage affordability calculations, because the income has not yet been received and is subject to conditions that may not be met (continued employment, performance targets, and, for options, the option price being below market price). Some lenders may note the value of unvested awards as context for your earning potential, but they will not include it in the income figure they lend against. Where a grant letter or total compensation statement shows future expected award values, this can support the case that your income is likely to continue — but the lending calculation itself will be based only on income already received and evidenced. If you are expecting a large RSU vest in the near future, it may be worth waiting until after the vest and documenting the receipt before applying.

Question 6

How does RSU income affect my mortgage borrowing capacity?

Accepted Answer

Including RSU income in the affordability assessment can substantially increase your borrowing capacity. As a straightforward example: if your base salary is £80,000 and you receive average annual RSU income of £30,000, a lender willing to include 100% of RSU income would assess your income at £110,000 and potentially offer up to £500,000–£550,000 (at 4.5–5x), versus £360,000–£400,000 based on salary alone. However, because RSU income is variable year to year — depending on share price at vest, number of units vesting, and continued employment — lenders may apply a lower income multiple to the RSU component, or cap the proportion of total income that equity awards can represent (e.g. no more than 50% of total income). Understanding how a specific lender will treat your income before applying avoids declined applications that leave hard footprints on your credit file.

Question 7

Can I use RSU or LTIP income as a mortgage deposit?

Accepted Answer

Yes — if your RSUs have vested and you have sold the shares and received the cash, the proceeds can be used as a deposit. The cash proceeds from RSU sales, once sitting in your current or savings account, are treated no differently from any other personal savings. You will typically need to evidence the source of the funds, which means providing your brokerage statement showing the RSU sale, the cash receipt into your bank account, and (if required) a letter from your employer or equity administrator confirming the nature of the payment. HMRC will have treated the income tax and NICs on the income at vest, so the net cash after tax is yours to use. If you are using RSU proceeds alongside your monthly salary as a deposit source, standard bank statement evidence covering three to six months is normally sufficient.

Question 8

Are there specialist lenders or brokers for RSU and equity compensation mortgages?

Accepted Answer

Yes — while no UK lender markets itself specifically as an 'RSU mortgage lender', several lenders with flexible manual underwriting are known to assess equity award income sympathetically. These include specialist lenders, certain building societies, and private banks that serve professionals in finance, technology, and corporate sectors where equity compensation is common. The key is working with a whole-of-market specialist mortgage broker who has placed RSU and LTIP cases before and knows which lenders' current underwriting criteria accommodate your income structure. Because the accepted evidence, income calculation method, and eligible income proportion vary between lenders, pre-application research through a broker is far more efficient than applying speculatively and being declined. A declined mortgage application can leave a hard credit search on your file for 12 months.

RSU & LTIP Mortgage FAQ