Introduction.
For many people in technology, finance and listed companies, shares are a large part of what they earn.
Restricted stock units, or RSUs, can add tens or hundreds of thousands of pounds a year to a salary. Yet many mortgage applications only count the base salary, because the lender does not know how to treat the rest.
The difference can be significant. A buyer on £120,000 salary with £80,000 a year of vesting shares may be offered a loan based on £120,000 by one lender, and on close to £200,000 by another.
This guide explains how RSUs and vested shares work, how different types of lender assess them, the evidence they ask for, the tax points to understand, and how shares can be used towards a deposit. Lender criteria change often, so the figures here are indicative.
The track record of vesting most lenders like to see before counting share income.
01RSUs and vested shares explained.
An RSU is a promise from your employer to give you shares in the future, usually in instalments over several years, provided you are still employed when each instalment vests.
How a typical grant works
| Stage | What happens |
|---|---|
| Grant | You are awarded a number of units, often on joining or at an annual review |
| Vesting | Units turn into real shares on set dates, often monthly or quarterly over four years |
| Sell to cover | Some shares are usually sold at vest to pay income tax and National Insurance |
| Hold or sell | The remaining shares are yours to keep or sell |
Plans differ by employer. Some include a one-year cliff before anything vests; others vest evenly from the start.
Other share plans lenders see
- Share options. The right to buy shares at a fixed price; value depends on the share price.
- Performance shares. Vest only if company targets are met, so lenders treat them cautiously.
- Save As You Earn and Share Incentive Plans. HMRC-approved schemes, usually smaller sums.
- Private company shares. Hard to value or sell, so rarely counted as income.
Adviser’s note
Listed company RSUs are the easiest to evidence, because there is a public share price and a broker statement for every vest.
02How lenders treat share income.
There is no single rule. Each lender decides whether to count share income at all, how much of it to use, and over what period to average it.
Typical approaches
| Type of lender | Usual treatment of vested RSU income |
|---|---|
| High street | Often ignored; where accepted, a portion of the last 12 to 24 months |
| Building societies | Manual underwriting; often 50% to 80% of a two-year average |
| Specialist lenders | Case by case; often 50% to 75% of a sustained track record |
| Private banks | Whole-of-wealth view; may use recurring vests in full |
Indicative ranges from market experience, October 2026. Lenders change their criteria regularly and assess each case individually.
What makes lenders more comfortable
- A track record. Usually two full years of vesting, so there is an average to use.
- Regular refreshers. Evidence of new grants each year shows the income is ongoing.
- A listed employer. A public share price makes the value easy to check.
- Stability. Large swings in value lead lenders to use the lower year.
03Vested, unvested and new grants.
Lenders draw a clear line between shares you already own and shares you have only been promised.
How each type is usually viewed
| Shares | As income | As an asset |
|---|---|---|
| Vested and sold | Often counted, averaged | Cash once sold |
| Vested and held | Sometimes counted | Yes, at a discount |
| Unvested, existing grant | Usually not, except some private banks | No |
| New-hire grant | Rarely, until it has vested | No |
Unvested units can lapse if you leave, which is why most lenders give them no value.
Points to watch
- Changing jobs. A new employer resets the track record. A buy-out of lost shares is usually treated as a one-off.
- Share price falls. Lenders tend to use the value at vest, not today’s price, so a fall can reduce the income they count.
- Cliff vesting. Large annual vests can be harder to average than monthly ones.
- Joint applications. Each applicant’s share income is assessed separately.
Adviser’s note
If you have recently moved roles, timing matters. Applying after the first refresher grant has vested can change which lenders will help.
04The evidence lenders ask for.
Share income is assessed manually, so a well-organised file makes a real difference to how quickly and how fully it is counted.
The core documents
- Three to six months’ payslips showing RSU income and tax at vest
- Your last two P60s
- Broker statements showing each vest and any sales, from the plan administrator
- Your grant letters and vesting schedule
- An employer letter confirming the plan and annual refreshers
- Bank statements showing sale proceeds arriving
Making the file easy to underwrite
- A summary table. Every vest in the last 24 months, with the date, number of shares and value.
- Matching figures. Payslip, P60 and broker figures should reconcile.
- Future vests. A schedule of what vests in the next 12 months supports the case that income continues.
- Currency. If shares are priced in dollars, show the sterling value at each vest.
Adviser’s note
We prepare the summary table for every RSU client. It is often the single document that decides how much the underwriter will count.
05Tax at vest and on sale.
Lenders look at income after tax as well as before it, and the timing of tax affects how much cash you have for a deposit.
How RSUs are usually taxed in the UK
| When | Tax |
|---|---|
| At grant | Usually nothing |
| At vest | Income tax and National Insurance on the value, normally through PAYE |
| On sale | Capital gains tax on any rise in value since vest |
General information for UK tax residents, 2026/27. The capital gains tax annual exempt amount is £3,000. This is not tax advice; please speak to an accountant about your circumstances.
Why it matters for a mortgage
- Higher tax bands. Large vests can push income above £100,000, where the personal allowance tapers away.
- Sell to cover. The shares you receive are fewer than the units that vested; lenders know this.
- Selling for a deposit. Shares held for some time may carry a capital gains tax bill when sold. Plan for it in your budget.
- Overseas employers. Tax may be handled differently, which changes the evidence needed.
The point at which RSUs become taxable income and, for most lenders, countable income.
06Using shares towards a deposit.
Many RSU holders build a deposit from vested shares. Lenders accept this, provided the money can be traced from vest to completion.
Plan the sale
Decide when to sell, allowing for the share price, capital gains tax and any company dealing windows.
Keep the trail
Broker statements should show the shares vesting, the sale and the proceeds leaving the account.
Move to your bank
Proceeds should arrive in an account in your name, ideally in one transfer.
Allow for currency
Dollar proceeds need converting; the exchange rate on the day changes the sterling figure.
Shares not yet sold
Most lenders want the deposit in cash before exchange. Some private banks will lend against a share portfolio instead, which can avoid selling at a bad time.
07Private banks and portfolio lending.
For larger loans and significant share holdings, private banks take a broader view of your finances than a standard mortgage lender.
What private banks may offer
- Whole-of-wealth assessment. Salary, bonus, RSUs and other assets looked at together.
- Full use of recurring vests. Some banks count regular RSU income in full.
- Unvested shares. A few will give some weight to scheduled future vests.
- Interest-only terms. With a clear plan to repay, such as future vests or a sale.
Lending against a portfolio
| Option | How it works |
|---|---|
| Pledged portfolio | Shares held with the bank as extra security for the mortgage |
| Lombard loan | A separate loan secured on investments, often used for a deposit |
| Assets under management | Some banks expect you to invest a sum with them |
Concentrated holdings in a single company are usually lent against at a lower percentage than a diversified portfolio.
Adviser’s note
Private bank terms are negotiated, not published. We introduce clients to the banks most likely to value their share income.
08An RSU purchase, illustrated.
A software engineer at a listed tech company
Daniel earns a £120,000 salary and has had around £80,000 a year of RSUs vest quarterly for three years. His first lender quote used salary only.
- Purchase
- £1,100,000 house in south-west London
- Salary only
- Around £540,000 at 4.5 times income
- With share income
- Lender used 75% of his two-year RSU average, £60,000, alongside salary
- Mortgage
- £825,000 at 75% loan to value, around 4.6 times the £180,000 counted
- Deposit
- £275,000, partly from vested shares sold and traced to his bank
This example is illustrative and does not describe a real client. Affordability also depends on outgoings, rates and stress tests.
09Checklist and glossary.
Before you apply
- Download broker statements for the last 24 months
- Gather your grant letters and vesting schedule
- Ask HR for a letter confirming the plan and refreshers
- Check your payslips and P60s reconcile with the vests
- Decide whether to sell shares for the deposit, and when
- Speak to an accountant about capital gains tax
- Avoid changing jobs during the application if you can
- Note any upcoming vests and dealing windows
Glossary
- RSU
- Restricted stock unit: a promise of shares that vest over time.
- Vesting
- The date units become shares you own.
- Refresher
- A new grant made each year to existing staff.
- Cliff
- A period, often a year, before anything vests.
- Sell to cover
- Selling some shares at vest to pay the tax.
- Plan administrator
- The broker that holds and reports your shares.
- Lombard loan
- A loan secured on an investment portfolio.
- Whole of wealth
- Assessing income and assets together.
Related: HNW / UHNW Individuals · All guides · Calculators