What type of mortgage lender is Aldermore?

Aldermore is a specialist mortgage lender that largerly caters for borrowers who might struggle to get approved for a mortgage on the high street. Many of the mortgages they offer are for applicants with bad credit, self-employed individuals and buy-to-let landlords.

Aldermore was established in 2009 and was acquired by the FirstRand Group, one of South Africa's major financial services companies, in March 2018. They have won several awards for their products and services over the years.

Although the lender has a wide range of products available, including first-time buyer exclusives, commercial mortgages and remortgage deals, approaching them directly isn't recommended. Speaking to a mortgage broker first will open up the entire market to you, so you can compare Aldermore's product range with every possible alternative.

Teito's service allows you to compare Aldermore's rates and deals with products from across the market, and we have mortgage brokers on hand to make sure you get the right mortgage for you - get started here.

What interest rates do they offer?

Aldermore's mortgage interest rates can vary depending on the type of product you take out, the amount of deposit you have and your credit history, among other factors. At the time of writing (April 2024), the interest rates for the lender's standard residential mortgage range - which is aimed at mortgage and remortgage customers with adverse - start at 5.44%.

Aldermore's standard variable rate (SVR) is currently 9.73%, having been increased to this percentage on 1st September last year.

You can compare rates and deals from Aldermore with their competitors from across the market for FREE below:

What kind of reviews does Aldermore have?

Aldermore has received generally positive reviews from customers, currently holding a rating of 4.5/5 on review service TrustPilot, based on feedback from more than 4,000 people. In addition, Time Money Mentor gave the bank a review score of 70% when assessing all of its products and services in the spring of 2023.

Pros and cons

The table below shows the advantages and disadvantages of Aldermore's mortgage products at a glance.

Lending criteria

Below you will find an overview of the general lending criteria for Aldermore's residential mortgage range:

Term lengths: mortgage terms of between 10 and 40 years are available.

Income: Aldermore will accept 100% of basic salary for employed applicants plus between 50-100% of supplemental income, depending on its source. Self-employed applicants need two years' trading history (minimum).

Age: The oldest applicant cannot be any older than 70 by the end of the term. A minimum age of 21 also applies.

LTV: The lenders standard residential rage has an LTV cap of 80%, meaning you would need 20% deposit, while its high LTV range goes up to 90% (10% deposit). Aldermore do not offer 95% LTV mortgages or 100% mortgages for applicants with no deposit.

Credit history: Aldermore will accept borrowers with most types of adverse credit, often with conditions. Very severe forms of adverse such as bankruptcies and debt relief orders need to have been discharged for at least six years.

Please note that Aldermore has specific criteria for other product types, such as buy-to-let and commercial mortgages.

How do they calculate affordability?

Aldermore will cap your maximum borrowing at 4.5 times annual salary, taking the combined income of all applicants into account. 

How to compare Aldermore mortgages

It's important that you compare Aldermore's product offering with what's available across the entire market. Even if you believe that Aldermore is the right lender for you, it doesn't hurt to rule out the possibility that there's a more suitable mortgage available elsewhere.

Through Teito's free service, you can browse Aldermore's product range and compare it with the alternatives. You can also access support from a whole-of-market broker through us to further increase your chances of landing a favourable rate on the terms that you need.

Get started to browse rates and deals from Aldermore and other lenders, and take advantage of a free, no-obligation chat with a mortgage advisor today.

Buy-to-let mortgage range

Aldermore's buy-to-let mortgage range includes products aimed at:

• First-time landlords: Provided they have a minimum income of £25,000
• Experienced landlords: With no income restrictions as long as they have at least six months' letting history. Top slicing is available on a range of income types
• HMO buyers: Options for landlords purchasing this property type or multi-unit freeholds with a value of up to £10 million
• Portfolio landlords: Will accept one application for up to 30 properties, with an affordability stess test across them all 

At the time of writing, the lender's buy-to-let range has interest rates of between 5.09% and 6.78%, although rates can change at any time.

You can compare buy-to-let mortgage rates from Aldermore with deals from across the market for free through Teito, and we have whole-of-market brokers on hand to help you get the right mortgage for you - get started here.