Aldermore

Aldermore was founded in 2009, emerging during a period when traditional high street banks were pulling back from commercial lending in the aftermath of the global financial crisis. The bank was established with a clear mission: to provide straightforward, common-sense lending to small and medium-sized businesses and property investors who were being underserved by the mainstream banking sector. Since its inception, Aldermore has grown into one of the UK's most recognised challenger banks, building a substantial commercial lending book and earning a reputation for pragmatic, flexible underwriting.

Aldermore became a fully licensed bank in 2009 and listed on the London Stock Exchange in 2015. In 2018, it was acquired by FirstRand Group, one of Africa's largest financial services organisations, which provided additional capital backing and stability while allowing Aldermore to maintain its independent brand and lending approach. This combination of challenger bank agility and strong institutional backing gives Aldermore a distinctive position in the UK commercial lending market.

The bank operates across several core lending divisions relevant to commercial property. Its Commercial Mortgages division provides term lending for the purchase, refinance, and equity release of commercial and semi-commercial properties. Typical loan sizes range from £50,000 to £15 million, with loan-to-value ratios of up to 75% available for the strongest applications. Aldermore is particularly well-regarded for its approach to semi-commercial and mixed-use properties, where it has developed specific expertise in assessing the blend of commercial and residential income streams that characterise these assets.

Aldermore's bridging finance division offers short-term funding for property acquisition, refurbishment, and chain-break scenarios. Bridging loans are available from £50,000 to £10 million, with terms of up to 24 months and loan-to-value ratios of up to 75%. The bank's bridging team is known for speed of execution, with decisions in principle often available within 24 to 48 hours and completions achievable within two to four weeks for straightforward cases. This makes Aldermore a strong option for borrowers who need to move quickly, whether purchasing at auction, securing a time-sensitive acquisition, or bridging a gap in their funding chain.

For property developers, Aldermore offers development finance facilities covering land acquisition, construction costs, and associated professional fees. Development loans are typically structured with an initial tranche for land purchase and subsequent drawdowns against a surveyor-certified build programme. Gross development value lending of up to 65% and loan-to-cost ratios of up to 80% are available, depending on the scheme, location, and developer's track record. Aldermore's development finance team has particular expertise in residential-led schemes of up to around 30 units, conversions, and mixed-use developments that combine ground-floor commercial space with upper-floor residential.

One of Aldermore's key differentiators is its underwriting philosophy. Unlike many high street banks that rely heavily on automated scoring and rigid criteria, Aldermore employs experienced underwriters who assess each application on its individual merits. This means the bank can consider cases that might not fit neatly into a standard credit policy — for example, borrowers with complex income structures, properties with unusual characteristics, or deals that require creative structuring. This flexibility extends to borrower types: Aldermore lends to individuals, limited companies, LLPs, partnerships, trusts, SIPPs, and offshore vehicles, giving it one of the broadest borrower acceptance ranges in the challenger bank sector.

Aldermore's approach to property types is similarly broad. The bank will consider offices, retail units, industrial and warehouse properties, mixed-use buildings, care homes, nurseries, dental practices, veterinary surgeries, and a range of other specialist commercial properties. It also has a strong track record in the semi-commercial space — properties such as shops with flats above, pubs with accommodation, and other assets that blend commercial and residential use. For these properties, Aldermore's underwriters assess the combined income stream and consider the residential element as a positive factor in the overall security assessment.

The bank's approach to borrower assessment balances affordability with pragmatism. For investment properties, Aldermore typically requires rental coverage of at least 125% to 145% of the mortgage payment at a stressed interest rate, depending on the borrower's tax status and whether the property is held personally or in a limited company. For owner-occupied properties, the bank assesses the business's ability to service the debt from trading profits, typically requiring two years of accounts and up-to-date management information. Where borrowers have complex income — for example, multiple income streams, self-employed earnings, or income from overseas — Aldermore's underwriters take a holistic view rather than applying rigid income multiples.

For portfolio landlords and investors with multiple properties, Aldermore offers portfolio assessment approaches that consider the overall strength of the borrower's property holdings rather than assessing each property in isolation. This is particularly valuable for experienced investors who may have properties with varying levels of rental coverage but a strong overall portfolio position. The bank can also accommodate borrowers who are building portfolios, providing facilities that allow for future acquisitions and portfolio expansion.

Aldermore's typical interest rates for commercial mortgages start from around 5.5% for the strongest applications, with rates varying depending on loan-to-value ratio, property type, borrower strength, and loan size. The bank offers both fixed and variable rate options, with fixed-rate periods typically available for two, three, and five years. Arrangement fees are generally between 1% and 2% of the loan amount, with early repayment charges applying during any fixed-rate period. For bridging loans, rates start from around 0.55% per month, with arrangement fees of 1% to 2%.

The application process with Aldermore typically begins with an initial enquiry to a broker, who will present the case to the bank's commercial lending team. A decision in principle can usually be obtained within 48 hours for straightforward cases. Once the borrower is happy to proceed, a formal application is submitted along with supporting documentation including accounts, bank statements, identification, and property details. The bank instructs a valuation and, subject to a satisfactory report, issues a formal offer. Completion timescales vary but typically range from four to eight weeks for commercial mortgages and two to four weeks for bridging loans.

Aldermore is regulated by the Financial Conduct Authority and the Prudential Regulation Authority, and deposits with the bank are protected by the Financial Services Compensation Scheme up to the standard limit. This regulatory framework provides borrowers with confidence in the bank's stability and governance, while also ensuring that lending practices meet the high standards expected of a UK-regulated banking institution.

For borrowers working with Commercial Mortgage Broker, Aldermore is frequently a strong option for cases that require a lender willing to look beyond the standard criteria. Whether the deal involves a complex borrower structure, an unusual property type, or a time-sensitive acquisition requiring bridging finance, Aldermore's combination of flexibility, speed, and competitive pricing makes it one of the most versatile lenders on our panel. Our direct relationships with Aldermore's senior underwriters mean we can present cases effectively and often achieve terms that borrowers would not be able to access by approaching the bank directly.