Restricted Stock Units and Mortgages

candor

Registered User
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45
Hi all,

Hope you are all keeping well.

We are currently working through mortgage applications. My income is made up of a base salary and RSUs (Restricted Stock Units).

Has anyone experience of using RSUs as part of the income for a mortgage application?

If so, what percentage of RSUs was considered as income?

Thanks!
 
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If so, what percentage of RSUs was considered as income?

I got about 50% included based on being able to show a good consistent history of annual payouts over the last few years. Banks will vary on how they treat them, a good broker will know the score.
 
I got about 50% included based on being able to show a good consistent history of annual payouts over the last few years. Banks will vary on how they treat them, a good broker will know the score.

Thanks Leo, much appreciated. Was that 50% of the gross grant or 50% of the net average payouts?

I have been selling regularly for the last few years to show cashflow.
 
It was ~50% of the gross. I believe the LTI calculations always use the gross figures.
Yes, correct.

Your 50% figure is what I would have said. It's generally the average of last 2/3 years that's used, so it needs to be a regular amount to be of benefit.
 
Thanks folks for the clarification. I can show the numbers going back that far so that should be of help.
 
I'm applying to 4 banks, AIB, Bank of Ireland, Ulsterbank and KBC.
  • Ulsterbank: Won't take RSUs into account.
  • Bank of Ireland: Won't take RSUs into account unless you work for Amazon, as they have some agreement with Amazon.
  • AIB: Will take RSUs into account, the amount is in line with what Leo said.
  • KBC: Won't take RSUs into account.
 
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I thought it would be helpful to follow up on this for others who may be in the same position. We had approval in principle with AIB with the shares taken into account as income. This was based on income received by me for the last three years.

They pulled this approval in priniple today citing a policy change in the last week with regard to taking shares into account for income. The agent said this was in response to the Covid 19 situation. They also mentioned they had a number of applications from others that were in the same position and expected a significant impact to lending amounts as a result.
 
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