RSU Mortgages

A restricted stock unit (RSU) is a form of stock-based compensation used to reward employees. 

Restricted stock units (RSUs) are structured to vest when a certain period of time has passed or when certain milestones have been reached and, unlike stock options, will have some value upon vesting unless the underlying company stock becomes worthless. 

This form of compensation is gradually becoming more common in the UK with technology firms such as  Amazon, Google, and Apple and many venture backed tech companies. 

There are two broad ways in which the RSUs can be used while applying for a mortgage.

- Vested RSUs can be used as a deposit for the purchase of the property

- Unvested RSUs can be used as an income stream that will support the (enhanced) mortgage amount

It is still fairly less common in the UK for lenders to consider RSU as a source of income. But there are a few lenders who accept RSUs and have their individual criteria for assessing an application. Some of the criteria/documentation the lenders look at are listed below.

- History of RSU income and the vesting schedule

- Personal credit score

- Employment contract

- Basic Income 

By engaging an advisor that understands this landscape, you will take away the complexity involved in the process and submit your application for a mortgage with full confidence