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Bonus rights shares

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  • 27-12-2020 9:10pm
    #1
    Michael_Res1
    Registered Users Posts: 57 ✭✭


    Hi Friends,

    I'm soon to make an application for a mortgage and was wondering if I could include bonus shares as part of my overall bonus figure in my application to the bank. I do get an additional separate annual cash bonus, which I will include. However, I was wondering if there is some way I can include bonus shares. Would the only solution be to redeem and the bank will be able to see it on my p60 or payslip? I do make the required rtso and form 11 tax filings when I redeem these shares.

    Kind regards,
    Mike


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    #2
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    I can tell you my experience applying with BOI. For cash bonuses they will take the average over the last 3 years.

    They don’t count any shares such as through an ESPP
    or RSUs.

    They will count any health insurance paid by your employer.


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    #3
    mojesius
    Registered Users Posts: 4,322 ✭✭✭mojesius


    Exact same as above with PTSB.


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    #4
    Pete123456
    Registered Users Posts: 962 ✭✭✭Pete123456


    I suggest talking to the bank or broker - it depends on your circumstances and strength of your case, as well as being able to make a case to the particular underwriter. In my experience, the underwriter that gets your case could make or break you depending on their experience. An inexperienced underwriter might look for more and more justification, an experienced one might only glance and take more on board.

    I’m assuming you mean you take your cash bonus as shares as part of a share purchase program. Most of the banks we looked at will take 25% of your bonus figure (regardless or whether you choose to invest it or not) assuming you have it guaranteed on a salary cert. I don’t know whether they would do the same if it was ticked as not guaranteed.

    We pushed hard and the bank would not consider more than 50%. This was based on the average bonus over three years, payslips and p60s showing it. In my case my “bonus” is contractually guaranteed, which still wouldn’t push them.

    If on the other hand you’re looking to include shares you have as a deposit, this would obviously mean being able to cash them out and realistically you’re going to get probably 45% of whatever the figure you have is, assuming they’re eligible for sale and they charge your 2 or 3% commission.


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