The Co-operative Bank stops issuing RSU Income Mortgages - which other lenders offer them?

The Co-operative Bank has confirmed that it will no longer accept RSU income (Restricted Stock Unit) when assessing mortgage affordability. This is a frustrating withdrawal for borrowers whose remuneration packages include equity-based pay — particularly those working in technology, finance, law, and senior corporate roles where this type of compensation is increasingly common.

Until recently, the Co-operative Bank was one of a select group of lenders willing to consider this income type, albeit on a highly restricted, case-by-case basis requiring a senior underwriter's sign-off.

Following the merger of Coventry/Godiva with Co-operative Bank, the lender has changed its acceptance criteria, and Coventry now has a different lending appetite. This means the Co-operative Bank will no longer be granting exceptions to take RSU income or use RSU income required for mortgage affordability.

What did the Co-operative Bank's RSU criteria look like?

The bank's previous policy required that applications using RSU or LTIP income be approved by a senior underwriter and subject to full underwriting assessment. Evidence required included payslips showing the RSU or bonus being paid, employer compensation statements where payslips were unavailable, and up to two years of P60s if previous income history was needed.

Where accepted, the bank would use the total annual RSU or LTIP award as shown on payslips — entered as bonus income — with 50% of that figure factored into the affordability calculation. The bank was explicit that this was an exception to standard lending policy, not a mainstream route, and reserved the right to decline applications where overall affordability gave cause for concern.

That exception no longer exists. The Co-operative Bank has removed RSU and share-based income from its criteria entirely.

Aaron Strutt, Product Director, Trinity Financial: "The Co-operative Bank's withdrawal highlights exactly why borrowers with complex income structures need whole-of-market advice. RSU income mortgages are a specialist area — most high street banks either don't accept this income or don't publicise that they do. Knowing which lenders are currently open, what evidence they require, and how to present the case is the difference between an approval and a declined application. Thankfully, there are still lenders offering RSU income mortgages."

Who is affected?

This change is most relevant to borrowers whose annual earnings include a meaningful proportion of equity compensation — RSUs that vest over time, long-term incentive plan awards, or bonus payments made in company stock rather than cash. This profile is particularly common among employees of large technology firms, investment banks, law firms, and multinational corporations operating in London.

For some borrowers, their base salary alone is sufficient to support the mortgage they need, in which case the Co-operative Bank's policy change may have no practical impact. But for those who need their share-based income factored in — either to meet the loan size requirement or to demonstrate overall affordability — the withdrawal of this option means they will need to look elsewhere. 

Which lenders do still accept RSU Income?

The Co-operative Bank's decision is a lender-specific policy change, not a market-wide shift. A number of lenders do still consider RSU income — but criteria, evidence requirements, and the percentage of income used vary significantly, and not all lenders publish their approach openly. Here is a summary of the main options currently available.

NatWest's RSU income policy

NatWest is one of the few mainstream lenders with a clear RSU policy, though it is typically restricted to loans above £600,000. RSUs are treated similarly to bonus income — not fully guaranteed, but considered. NatWest will use 50% of the average of the last two years' vested RSUs for affordability. Evidence required includes three years' P60s, three years of payslips showing RSU awards, compensation statements, a vesting schedule, and proof that some RSUs have been cashed in (evidenced by share sales).

Skipton Building Society's RSU income policy 

Skipton will accept RSU income, categorising it under "non-guaranteed other" income. They will typically use around 60% of the RSU figure, provided the income has been vesting and is due to continue. Evidence required includes the latest P60, a current payslip showing RSUs, and the most recent vesting schedule confirming further shares will vest over at least the next 12 months. Skipton can be a strong option for professionals employed by listed or well-known companies.

Coutts Private Bank - RSU income policy 

For higher-earning borrowers, Coutts offers a more tailored approach and will assess RSUs in a similarly structured way to NatWest. However, entry requirements are significantly higher — typically £300,000 or more in annual income or a net worth above £3 million. Private banks such as Coutts often take a more holistic view of income, assets, and long-term earning potential, which can work in favour of applicants with substantial equity compensation.

Santander's RSU income policy

Santander has been known to consider RSU income, but typically only on larger mortgages above £1 million. As with most lenders in this space, the treatment of RSU income is case-by-case, and the application needs to be carefully structured and presented.

Other lenders RSU income policies

Beyond these, a small number of additional high-street lenders and specialist private banks will consider RSU income on a case-by-case basis — often only for larger loans or premier banking cases. Treatment of income matters as much as acceptance: some lenders cap variable income (including RSUs) at the level of basic salary, which can significantly reduce the loan available even where the income is accepted in principle. Some of these lenders include Kensington for Intermediaries and Generation Home.  

Would one of the 5.5- or 6.5-times-salary mortgages help bypass RSU income?

If you are planning to buy or remortgage and your income includes RSUs, LTIPs, or share-based pay, it is important to take specialist advice before applying anywhere directly. Now that mortgage lenders offer up to 6.5 times a single's joining income, many homebuyers may not need to show their RSU income to qualify for a sufficiently large mortgage. Trinity Financial recently bypassed one of our clients' RSU income by securing a standard 5.5x salary mortgage for them. 

Trinity Financial's brokers regularly work with clients whose income includes RSUs and other share-based compensation. We know which lenders currently accept this income type, how they assess it, what documentation they need, and how to structure an application for the best possible outcome. In some cases, it may also be possible to borrow the amount required without relying on RSU income at all — using enhanced income multiples now available from certain lenders for higher earners.

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The information contained within was correct at the time of publication but is subject to change.

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