The situation
A senior finance professional is considering a £2.5m London home with £900,000 of personal funds towards the price. Purchase costs are separate. They receive a salary, an annual cash bonus and deferred share awards, and would like to retain some savings for family commitments.
What makes this more involved?
An impressive total remuneration figure can include amounts that have not vested, cannot yet be sold or may never be paid. Last year’s bonus is not a promise about next year. The assessment also needs to include school fees, other borrowing and the household’s regular spending.
How I would approach it
Separate each source of pay
Identify salary, cash bonuses actually paid, vested shares and future awards. Explain vesting dates, restrictions and the distinction between gross awards and money received after deductions.
Test the household budget
Compare regular commitments with dependable cash flow and review what happens in a lower-bonus year. A lender’s treatment of variable income may differ from the amount the household is comfortable relying on.
Compare repayment approaches
Consider repayment, part-and-part or interest-only only where suitable and available. For any interest-only portion, document an acceptable capital repayment strategy instead of assuming a future bonus will clear the balance.
What could change the plan?
What if the bonus is much lower next year?
That possibility belongs in the budget from the outset. Holding a cash buffer, reducing borrowing or changing the property budget may be more appropriate than relying on awards that are uncertain.
Could shares support an interest-only repayment plan?
Acceptance depends on the lender, ownership, accessibility, valuation and concentration of the holdings. Shares can fall in value. An unvested award should not be presented as an asset already available to sell.
What this would establish
Reach a borrowing and repayment plan that fits both lender requirements and the household’s tolerance for variable income. A lower income assessment or a different repayment split remains possible.
Educational content updated 24 September 2026. General information; individual advice requires an assessment. Lender criteria can change.
Further reading: Barclays: residential lending criteria. These references explain general criteria and do not indicate lender acceptance of this example.