Bonus and RSU considerations across banks

K

Kfox92

Registered User
Messages
19
Hi,
I'm in the process of getting my mortgage in approval via a broker. We're trying BOI first to see what amounts they will allow. I'm wondering if BOI (and other banks) have any hard and fast rules regarding bonuses in todays climate. I've heard 20% of bonus, 50% of bonus, 100% of bonus if its been consistent across 3+ years etc. Has anyone had any recent drawdowns and what bonus considerations were taken into account.

It's funny, my company is already noting gains in thier profits due to COVID and our bonus pool outlook is better than any of the previous 3 years, so an increased bonus would be expected if the trend continues but a bank might disregard this
 
Ulster Bank took the average of the last three years’ bonus for me.

EDIT: That wasn’t this year; I just looked at their Intermediaries site and it says that they allow it for the purposes of the Loan To Income (LTI) calculation only. Which is helpful I guess. So included for ‘3.5 times’ purposes but not for affordability.
 
Last edited:
During normal times in my own experience the banks have allowed 50% of my average bonus over 3 years, and from knowledge garnered on here they can take RSU's into consideration.

Posters have commented here that now banks are not taking into consideration Bonus or RSUs currently. I am currently going through a mortgage approval and will be able to add colour shortly.

Does your broker not have an idea?
 
Gordon Gekko said:
Ulster Bank took the average of the last three years’ bonus for me.

EDIT: That wasn’t this year; I just looked at their Intermediaries site and it says that they allow it for the purposes of the Loan To Income (LTI) calculation only. Which is helpful I guess. So included for ‘3.5 times’ purposes but not for affordability.
Click to expand...
Yes, I seen that in their criteria on their website which is encouraging. For affordability I'm more than covered, but as a single buyer I do need the bonus to be considered on the LTI for houses that are in my sight.
 
It really depends on who you work for in current environment. Cash bonus and RSUs will be looked at differently.
 
My fear would be that the website stuff mightn’t be up to date.

It’s an advert for using a broker to be honest if there’s any nuance to a case.

It’s easy to think that bonuses might be history across the board but in some sectors that’s not the case.
 
Dublinbay12 said:
During normal times in my own experience the banks have allowed 50% of my average bonus over 3 years, and from knowledge garnered on here they can take RSU's into consideration.

Posters have commented here that now banks are not taking into consideration Bonus or RSUs currently. I am currently going through a mortgage approval and will be able to add colour shortly.

Does your broker not have an idea?
Click to expand...
I'll also share here what bank of Ireland are currently offering in terms of bonus and rsu consideration in the current climate.
The broker has had initial calculations that include half bonus and no rsu. He mentioned that last year this would have been a pessimistic valuation, but it is on par with banks being more careful now. I hope at least half the bonus is included, bit we will see
 
RedOnion said:
It really depends on who you work for in current environment. Cash bonus and RSUs will be looked at differently.
Click to expand...
Gordon Gekko said:
My fear would be that the website stuff mightn’t be up to date.

It’s an advert for using a broker to be honest if there’s any nuance to a case.

It’s easy to think that bonuses might be history across the board but in some sectors that’s not the case.
Click to expand...
I suppose I didnt realise banks could/would be potentially looking at these mortgage applications with such detail on a case by case basis. Essentially didnt realise that a bank would possibly appreciate my bonus more or less than another applicant based in our company. My broker has mentioned that my company has good standing with banks and they should look at my application more favourably.
My worry here is that only base pay is considered across the board. But will know in the next couple of days
 
Kfox92 said:
I suppose I didnt realise banks could/would be potentially looking at these mortgage applications with such detail on a case by case basis. Essentially didnt realise that a bank would possibly appreciate my bonus more or less than another applicant based in our company. My broker has mentioned that my company has good standing with banks and they should look at my application more favourably.
My worry here is that only base pay is considered across the board. But will know in the next couple of days
Click to expand...
What documentation did your broker look for as evidence of your RSUs for past & future vestings? My company will not include them on the salary cert. I'm curious to hear what banks will accept as proof.
 
Got my AIP back from BOI last week, I think in total it was 12 working days to get it back. They included all of my guarenteed income, plus the average of my bonus and RSU's of the last 3 years. Overall happy with it
 
Kfox92 said:
Got my AIP back from BOI last week, I think in total it was 12 working days to get it back. They included all of my guarenteed income, plus the average of my bonus and RSU's of the last 3 years. Overall happy with it
Click to expand...

Nice! Thanks for the info. I’d be very happy with that result too.
 
Ulster have advised us they will not account for bonuses at all now, which is very frustrating. Only base salary accounted for when calculating 3.5 times income multiples.
BOI, AIB and KBC have advised they can count 50% of average bonus over last 3 years when calculating 3.5 times income multiples.
Seems like a very conservative approach from Ulster!
 
Kfox92 said:
Got my AIP back from BOI last week, I think in total it was 12 working days to get it back. They included all of my guarenteed income, plus the average of my bonus and RSU's of the last 3 years. Overall happy with it
Click to expand...

That's interesting, if you don't mind me asking, do you work for Amazon? When I approached BOI a few months back, they advised that they only took RSUs from Amazon into account.

If you don't work for Amazon, who's your contact in BOI?
 
candor said:
That's interesting, if you don't mind me asking, do you work for Amazon? When I approached BOI a few months back, they advised that they only took RSUs from Amazon into account.

If you don't work for Amazon, who's your contact in BOI?
Click to expand...
I don't work for Amazon. I'm going through a broker and haven't had direct dealings with BOI, but the amount they gave seems to suggest they're taking in the average of RSU + Bonus. It could potentially also be the case that they're taking a 3.5* my most recent bonus (larger than previous ones) and no RSU. both calculations land me in and around the same number, but my broker suggested the RSU's would be taken into consideration.
 
Kfox92 said:
I don't work for Amazon. I'm going through a broker and haven't had direct dealings with BOI, but the amount they gave seems to suggest they're taking in the average of RSU + Bonus. It could potentially also be the case that they're taking a 3.5* my most recent bonus (larger than previous ones) and no RSU. both calculations land me in and around the same number, but my broker suggested the RSU's would be taken into consideration.
Click to expand...

Thanks, that's interesting. It's an area that seems to differ depending on who you talk to in the bank...
 
You must log in or register to reply here.
Back
Top