CASE STUDY
Overview
When a high-earning software engineer looked to upsize his home following the arrival of his first child, he needed a mortgage adviser who could go beyond ‘standard.. With a purchase price of £2.61M and a loan requirement of £2M, nearly half of the affordability relied on equity-based income through Restricted Stock Units (RSUs). For many lenders, this form of remuneration would be excluded from affordability assessments entirely.
Referred by his asset manager, the client came to us for expert guidance on structuring this loan in a way that lenders would allow him to maximise his loan amount to retain his assets. Through detailed discussions with high-value underwriting teams, we were able to obtain the leverage he client required and secured a bespoke part-and-part mortgage at 76% LTV, combining interest-only and capital repayment, on competitive terms with a high street bank.
Case Profile
| PROFESSION | Software Engineer |
| RESIDENCY AND DOMICILITY | UK |
| PROPERTY VALUE | £2,610,000 |
| LOAN AMOUNT | £2,000,000 |
| LTV | 76% |
| PRODUCT TYPE | 2-Year Tracker (4.64%) |
| REPAYMENT STRUCTURE | Part & Part – 50% Interest-Only, 50% Capital & Interest |
The Challenge
The complexity of this case stemmed from the client’s income profile. While a base salary of £177,500 was substantial, the RSU income, totalling over £1M across six years, formed a critical part of the affordability assessment. Over half of the borrowing requirement was dependent on the lender’s acceptance of this equity-based remuneration.
The structure of RSUs (split between vested and unvested awards) required careful interpretation, both to understand what could be counted as qualifying income and to present this in a way that aligned with lender expectations. Most lenders were either unfamiliar with or unwilling to engage with this level of complexity, narrowing the available market considerably.
Tailored Solution
We began by breaking down the client’s compensation in detail, isolating vested RSUs and clearly demonstrating their consistency and availability. This was supported with well-organised documentation, income analysis and long-term projections; all designed to provide the lender with confidence in the client’s affordability and sustainability.
We structured the facility as a part-and-part product, allowing flexibility with repayments while maintaining a competitive tracker rate. Our long-standing relationship with a high street lender enabled us to present the case directly to key decision-makers, addressing potential queries proactively and ensuring the file was underwritten swiftly and smoothly.
Outcome
- Loan Secured: £2,000,000
- Rate: 2-Year Tracker at 4.64% (payable rate at point of completion)
- Structure: 50% Interest-Only, 50% Capital & Interest
The client was able to secure his new family home with a facility tailored to his income structure and future plans. The process was delivered with efficiency and clarity, giving him full confidence at every stage.
In The Client’s Words
“Henry Dannell did a phenomenal job breaking down our mortgage options and helping us find the right mortgage for our personal situation. Andrew was a great partner throughout the process and ensured that we remained well-informed all the way through to completion. Would highly recommend, especially for people who are looking to leverage equity-based income in their application.”