Aldermore mortgages reviewed: is it right for you?

Aldermore mortgages are built for borrowers who don't fit the typical high street lending criteria. If you're self-employed, have credit issues in your past, or you're a landlord with a growing portfolio, Aldermore is worth considering.

Founded in 2009, this challenger bank now helps thousands of UK homeowners and landlords each year through its intermediary-only mortgage products. You can't apply direct - you'll need to go through a mortgage broker to access their deals.

Our verdict: Aldermore is a strong choice for borrowers with complex circumstances who might struggle elsewhere. Their manual underwriting approach means real people review your application rather than algorithms, which can make a difference when your situation doesn't tick standard boxes. That said, their rates aren't always the cheapest for straightforward applicants.

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

Aldermore Bank PLC is a specialist retail bank headquartered in Reading, with offices across the UK including London, Manchester, Peterborough, and Newcastle. They don't have high street branches - instead, they operate entirely online, by phone, and through broker networks.

The bank was established in 2009 with backing from private equity company AnaCap Financial Partners. After growing rapidly, Aldermore listed on the London Stock Exchange in 2015 and joined the FTSE 250 Index. In March 2018, they were acquired by FirstRand, Africa's largest financial services group by market capitalisation, in a deal worth approximately £1.1 billion.

Today, Aldermore Group consists of two main operating companies: Aldermore Bank PLC (which handles mortgages, savings, and business finance) and MotoNovo Finance Limited (which provides motor finance). The group manages over £14 billion in deposits and has helped over a quarter of a million customers since launching.

Market position

Aldermore positions itself as a specialist lender for underserved markets - people who need a more individual approach to lending. Their core focus areas include:

• Self-employed borrowers and contractors
• First-time buyers with smaller deposits
• Borrowers with minor credit issues
• Landlords, including portfolio investors and limited companies
• Complex income situations (multiple income streams, variable earnings)

Unlike mainstream lenders that rely heavily on automated decisioning, Aldermore uses experienced underwriters who manually review applications. This human approach means they can consider circumstances that algorithms might reject.

Regulation and security

Aldermore Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.

Deposits with Aldermore are protected by the Financial Services Compensation Scheme up to £85,000 per person - the same protection you'd get with any UK-authorised bank.

Important: Aldermore's buy-to-let mortgages to limited companies and commercial mortgages aren't regulated by the Financial Conduct Authority or the Prudential Regulation Authority.

Aldermore offers a range of mortgage products across residential and buy-to-let markets. All products are available exclusively through mortgage brokers.

Residential mortgages

Aldermore's residential range is designed for owner-occupiers, with particular strength in helping first-time buyers, the self-employed, and those with credit history issues.

• Loan-to-value up to 95% for eligible borrowers
• Income multiples up to 6x for certain applicants
• Loans from £25,000 to over £1 million
• 2-year, 3-year, and 5-year fixed rate options
• Discount variable rate products available
• Free property valuations on most products
• Free legal fees on all remortgages

Aldermore organises its residential products into three credit tiers:

• Level 1 - for borrowers with clean or near-clean credit histories. Minor defaults and county court judgements up to £300 per applicant are ignored.
• Level 2 - for borrowers with some credit issues in their past, but who are now back on track.
• Level 3 - for borrowers with more significant credit history problems, including historic mortgage arrears, larger defaults, and recent credit issues. Available up to 80% loan-to-value.

Rates vary by tier, loan-to-value, and product term. Speak to a broker for current pricing across all three tiers.

Buy-to-let mortgages

Aldermore has built a strong reputation in the buy-to-let market, particularly among portfolio landlords and those using limited company structures.

• Individual and limited company applications
• Single property and multi-property portfolio options
• Houses in multiple occupation (HMOs) accepted
• Multi-unit freeholds accepted
• Up to 30 properties on one application with one direct debit
• Free valuations on standard properties
• Interest-only and capital repayment options

Commercial mortgages

For business owners looking to purchase or refinance commercial property, Aldermore offers commercial mortgage products with:

• Fixed and variable rate options
• Loans from £250,000
• Terms up to 25 years
• Loan-to-value up to 75%
• Arrangement fee typically 2% of the loan

The amount you can borrow depends on your income, the property value, and your overall financial circumstances. Aldermore uses an affordability assessment rather than simple income multiples, but as a rough guide:

• Standard: 4.49x income
• Enhanced: up to 5x income for certain borrowers
• Maximum: up to 6x income for eligible higher earners

What affects how much you can borrow?

Aldermore's underwriters consider several factors when calculating your maximum loan:

• Your income: this includes salary, bonuses, overtime, dividends, pension income, rental income, and certain benefits. For self-employed applicants, they'll look at your salary plus dividends or share of net profit.
• Your outgoings: existing mortgages, loans, credit cards, child maintenance, school fees, and other regular commitments.
• The property: its value, location, type, and condition. Non-standard construction properties may have lower maximum loan-to-value.
• Your deposit: a larger deposit (lower loan-to-value) typically means access to better rates and potentially higher income multiples.
• Your credit history: which tier you qualify for affects both your rate and maximum loan-to-value.

Practical example: Sarah earns £55,000 annually as a contractor. Using Aldermore's enhanced criteria for contractors, she might qualify for up to 5x income (£275,000). If she's buying at 85% loan-to-value, she'd need approximately a £48,500 deposit to purchase a property worth around £323,500.

Aldermore's specialist approach means they consider applicants that mainstream lenders might decline. Here's what you need to qualify.

Employment and income

Employed applicants: at least 3 months in current role with 12 months continuous employment history in the same line of work.

Self-employed (sole traders and partnerships): usually 2 years' accounts required, but 1 year may be considered if you have a track record in your trade, no adverse credit in the past 3 years, and can demonstrate sustainable income.

Limited company directors: 2 years' accounts typically required. They'll consider the highest combination of salary plus dividends, or salary plus share of net profit.

Contractors: 12 months' contractor history, or 24 months in the same line of work with at least 2 months remaining on the current contract. Day rate multiplied by 46 weeks is used for affordability calculations.

Umbrella company workers, CIS workers, and zero-hours contractors: all considered on a case-by-case basis with appropriate documentation.

Credit history

Aldermore's three-tier system allows them to accommodate various credit situations.

Level 1 accepts:

• Clean credit history
• Minor defaults up to £300 per applicant (ignored)
• Zero mortgage arrears in the last 12 months

Level 2 accepts:

• Defaults and satisfied county court judgements over 18 months old
• Zero mortgage arrears in the last 18 months
• Some historic unsecured arrears

Level 3 accepts:

• More recent defaults and county court judgements (from 6 months)
• Historic mortgage arrears (none in the last 6 months)
• Up to 3 missed unsecured payments in the last 12 months (if now up to date)
• Debt management plans if maintained for 12+ months

What Aldermore won't accept:

• Active individual voluntary arrangements or similar debt solutions
• Undischarged debt of certain types
• Very recent serious arrears
• Fraudulent applications

If you're worried about debt or credit issues, you can get free, impartial guidance from MoneyHelper at moneyhelper.org.uk or by calling 0800 138 7777.

Property types

Accepted:

• Standard freehold and leasehold houses and flats
• New build properties
• Ex-local authority properties
• Properties with short leases (case-by-case)
• HMOs and multi-unit freeholds (buy-to-let)
• Holiday lets
• Flats above commercial premises

Not accepted or restricted:

• Properties in serious disrepair
• Non-standard construction (case-by-case)
• Properties with structural issues
• Agricultural land with no residential dwelling
• Some high-rise flats with cladding issues

Understanding the full cost of an Aldermore mortgage means looking beyond the headline rate. A good way to compare mortgages is to look at the true cost over the initial period, including any arrangement fee and other charges, not just the interest rate.

Speak to your broker for a personalised breakdown of the total cost based on your loan amount, term, and chosen product.

Applying for an Aldermore mortgage follows a structured process. Since they're intermediary-only, you'll work through a mortgage broker, who will help you find the most suitable Aldermore mortgage for your circumstances.

Step 1: Initial enquiry and affordability check

Your broker submits an initial enquiry through Aldermore's portal, including your basic details, income information, and the property you're looking to buy or remortgage. Aldermore runs a soft credit check at this stage, which won't affect your credit score. Typical timeframe: same day to 48 hours for an initial response.

Step 2: Full application

If the initial enquiry looks positive, your broker submits a full application with supporting documents.

Employed applicants need:

• Last 3 months' payslips (showing year-to-date figures)
• Latest P60 or tax year overview
• Bank statements showing salary payments
• Proof of identity and address

Self-employed applicants need:

• 2 years' accounts or SA302s plus tax year overviews
• Latest 3 months' business bank statements
• Accountant's details for verification
• Proof of identity and address

Buy-to-let applicants also need:

• Rental income evidence (AST agreements)
• Portfolio schedule (for multiple properties)
• Limited company documents (if applicable)

Typical timeframe: 24-48 hours for submission, then 3-5 working days for underwriting review.

Step 3: Property valuation

Once your application passes initial underwriting, Aldermore instructs a valuation using their own panel of surveyors. Typical timeframe: 3-7 working days to complete.

Step 4: Mortgage offer

If the valuation is satisfactory and all conditions are met, Aldermore issues a formal mortgage offer. Typical timeframe: 24-48 hours after the valuation is received.

Step 5: Legal work and completion

For purchases, your solicitor handles the legal work. For remortgages, Aldermore's free legal service, through their nominated solicitor, manages the transfer. Typical timeframe: 2-4 weeks for remortgages, 4-8 weeks for purchases depending on the chain.

Tips to speed up your application:

• Have all documents ready before your broker submits
• Respond promptly to any additional information requests
• Use Aldermore's free legal service for remortgages
• Make sure your property chain is progressing

Aldermore operates without high street branches, but provides support through several channels.

What customers say about service

Based on Trustpilot reviews and industry feedback, here's what customers commonly mention.

Positive feedback:

• Knowledgeable, helpful phone staff
• Clear communication throughout the process
• No annoying call centre background noise
• Staff take time to understand individual situations
• Quick and easy ISA transfers for savings customers

Negative feedback:

• Application portal can be temperamental
• Processing times sometimes longer than expected
• Some cases have experienced delays with paperwork
• Limited phone hours compared to some competitors

Managing your mortgage

Once your mortgage completes, you can manage it through several channels.

• Online: check balances, view statements, and request documents.
• Phone: make changes, discuss options, and get support.
• Product switching: switch to a new rate up to 17 weeks before your current deal ends - no valuation, solicitor, or product fee for existing customers.
• Overpayments: pay up to 10% of your balance annually without incurring early repayment charges.

Like any specialist lender, Aldermore has strengths and limitations. Here's a balanced look at both.

Aldermore vs Shawbrook

Both are specialist lenders focusing on underserved markets. Shawbrook tends to be stronger in bridging finance and development loans, while Aldermore has a broader buy-to-let proposition. For residential owner-occupier mortgages with credit issues, they're closely matched.

Aldermore vs Precise Mortgages

Precise, part of OSB Group, is another specialist for adverse credit. They often compete directly with Aldermore's Level 2 and Level 3 products. Precise may have slightly more aggressive pricing in some niches, while Aldermore's underwriting is sometimes considered more flexible.

Aldermore vs Kent Reliance

Kent Reliance, also part of OSB Group, focuses heavily on buy-to-let, particularly for portfolio landlords. Both offer limited company lending and multi-property products. Aldermore's multi-property mortgage with one direct debit can be more administratively convenient for larger portfolios.

Aldermore vs high street lenders

If you have straightforward circumstances - permanent employment, clean credit, a 25% deposit - you'll likely find better rates from a mainstream lender such as Nationwide or HSBC. But if you have any complications, Aldermore's specialist approach may get you approved where mainstream lenders won't.

Ideal candidates

Self-employed professionals and contractors who need a lender that understands variable income, day rates, and dividend structures. Aldermore's flexible income assessment can work where high street lenders won't.

First-time buyers with small deposits who may have been turned away elsewhere. 95% loan-to-value products are available on Level 1 criteria, with income multiples up to 6x for eligible borrowers.

Borrowers rebuilding credit who have had financial difficulties in the past but are now back on track. Level 2 and Level 3 products provide a genuine second chance.

Portfolio landlords wanting to consolidate multiple properties under one account, particularly those using limited company structures. The multi-property mortgage simplifies management significantly.

Complex income situations involving multiple jobs, overseas income, or unusual employment arrangements. Manual underwriting means your circumstances are actually considered.

Poor fit profiles

• Rate-sensitive borrowers with clean credit would likely find better pricing at mainstream lenders. If you have a 25%+ deposit, permanent employment, and no credit issues, it's worth shopping around before committing to Aldermore.
• Borrowers wanting direct access who prefer dealing with lenders themselves. Aldermore's intermediary-only model means you must use a broker.
• Those needing very fast decisions on straightforward cases. Mainstream lenders with automated systems may complete quicker for simple applications.

We're not a lender - we connect you with specialist mortgage brokers who can help you access Aldermore's products alongside other options from across the market.

Why use our service?

• We compare a wide range of lenders, not just Aldermore
• Get matched to a broker who specialises in your situation
• Access expert advice with no pressure to proceed
• See whether you could get a better deal than going direct
• Support with complex applications