Aldermore review: bank development finance for experienced developers

Aldermore is a UK specialist bank that lends to experienced property developers and housebuilders on new build, conversion and refurbishment schemes. At the time of writing (October 2026) it offers development loans from £1m to £30m, up to 65% of gross development value (GDV), over terms of up to 30 months, with its pricing most competitive on loans of around £5m to £30m. Its website quotes loans of up to £50m, so larger schemes may be considered case by case. Bridge & Build Finance is an independent broker and is not part of Aldermore, so we can set its terms against other bank and non-bank development lenders. You can read more on Aldermore's own website.

About Aldermore

Aldermore Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the PRA. Its registered office is in Reading. Aldermore Group, which also includes MotoNovo Finance, is part of FirstRand Group, which describes itself as the largest financial services group in Africa by market capitalisation.

Aldermore has no high street branches. It says it operates online, by phone and through intermediary networks, which is why many developers meet it through a broker. Alongside development finance it offers commercial mortgages, asset finance, invoice finance, residential mortgages and savings. In 2026 Aldermore acquired the bridging lender Octane Capital, which now trades as a name of Aldermore Bank PLC.

Aldermore is one of the lenders we compare for development finance on larger residential and mixed-use schemes.

What Aldermore funds

Aldermore's property development finance covers new build, conversion and refurbishment projects. Short-term bridging, refurbishment and developer exit loans within the group are offered separately under the Octane Capital name, so this page covers Aldermore's own development lending.

For ground-up schemes and conversions, the 65% of GDV ceiling means most borrowers will need meaningful equity or a mezzanine layer alongside the senior loan.

Property development lending to limited companies is not regulated by the FCA or PRA, as Aldermore itself notes on its development pages. Aldermore counts planning gain towards the developer's contribution, can add the arrangement fee to the loan and releases drawdowns monthly. Mixed-use schemes where commercial space is under a quarter of cost are structured on the residential element, and phased builds and care homes are considered.

Who Aldermore suits (and who it may not)

Aldermore tends to suit:

• Experienced developers and housebuilders with a track record of similar schemes.
• Larger projects, typically needing around £5m to £30m, where Aldermore is most competitive.
• Developers planning to hold finished units, who may value the option of moving onto a commercial mortgage with the same bank.
• Mixed-use, pre-let commercial and student accommodation schemes, which some smaller lenders avoid.
• Borrowers who prefer a deposit-taking bank as their funder.

It is a poorer fit for first-time developers, smaller schemes needing less than a few million pounds, and anyone wanting higher leverage than 65% of GDV in a single senior loan. Aldermore's development product is also not designed for an auction purchase or other short-term bridging need; within the group, those are handled by Octane Capital.

What Aldermore looks at

As a bank lender, Aldermore will expect a well-prepared development proposal. For a scheme of this size, lenders typically look at:

• The developer's track record, ideally with completed schemes of a similar type and scale.
• The site, planning consent and any conditions or Section 106 obligations.
• A full cost plan, build programme and contractor details.
• The GDV, supported by an independent valuation and local sales or letting evidence.
• The equity being contributed and how any shortfall will be met.
• The exit: sales, refinance onto term debt, or a forward sale or pre-let for commercial space.

Aldermore says its development customers are supported by relationship managers. Security will be required, and personal guarantees are common in development lending.

Pros and cons

Pros

• Bank lender with capacity for loans up to £30m, and possibly more case by case.
• Covers residential, mixed use, pre-let commercial and student accommodation.
• Terms of up to 30 months give room for larger builds.
• Option to move retained schemes onto its commercial mortgage range.
• A fixed rate for the whole loan, with the arrangement fee able to be added.
• Planning gain counts towards your contribution.

Cons

• Less competitive on loans below around £5m.
• Leverage capped at 65% of GDV, lower than some specialist lenders.
• Aimed at experienced developers, so first-time developers will struggle.
• Bridging is offered through a separate brand, Octane Capital, rather than Aldermore's development team.

Going through a broker vs going direct

Aldermore says it works through intermediary networks, and many development borrowers reach it that way. Comparing first matters because development lenders differ widely in leverage, how they treat costs and contingency, how they release funds and what they charge to exit. A bank such as Aldermore may offer competitive terms on a strong, lower-leverage scheme, while a specialist lender may be the better fit where more of the cost needs funding.

We search the market, present your scheme to suitable lenders and manage the application through to completion. It is free to enquire, and any broker fee is disclosed before you proceed.

Alternatives to Aldermore

• Shawbrook Bank: another specialist bank lending on residential development and investment property.
• Close Brothers: a long-established bank lender to housebuilders and developers.
• Hampshire Trust Bank: a specialist bank with development and bridging lending.
• OakNorth Bank: a bank lender focused on larger development and investment loans.
• Secure Trust Bank: a bank lender to SME residential developers.
• Octane Capital: the group's bridging, refurbishment and developer exit brand.

Common questions

This review is our independent summary of the lender's publicly stated lending, checked in October 2026. Criteria change, so confirm the current position before relying on it. Bridge & Build Finance is an independent broker and is not part of any lender reviewed. Finance is subject to status, valuation and lender approval.