Aldermore posts higher gross lending of £10bn for 2026
Aldermore Bank has reported £10.4bn in gross property lending for the year ending June 2026, up from £8.7bn the year before.
It said its property finance division was its “primary driver of growth”, reflecting growth in specialist buy to let (BTL) and its acquisition of Octane Capital, which added £500m in bespoke bridging, refurbishment and development exit loans to its portfolio.
Aldermore said the acquisition of Octane Capital widened its capabilities in specialist lending and enhanced its ability to support professional landlords and developers.
Its property finance book comprised £7.7bn in BTL loans, up from £6.7bn last year, and £2.7bn in residential mortgages, up from £2bn.
Aldermore pointed to changes it made across its residential proposition, such as enhancements to mortgage affordability and improving its loan-to-income (LTI) ratios.
The group said this resulted in a 7% fall in affordability-related rejections and increased lending above 4.5 times LTI from a share of 6.6% to 12%, while maintaining responsible lending standards.
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Over the year, the lender supported more than 2,000 first-time buyers and provided over £160m in finance to borrowers with complex financial circumstances or adverse credit histories.
Aldermore delivered a profit before tax of £51.2m, plummeting from last year’s £193.5m. It said this was impacted by charges related to the Financial Conduct Authority’s (FCA’s) motor finance redress, which saw its parent company decide to pull out of the UK market and put Aldermore up for sale.
It also attributed the lower profit to restructuring charges to strengthen the business for growth and costs associated with its sale.
A net impairment release of £1.3m was recognised within its property finance division, compared to a release of £10.5m last year.
Aldermore said its portfolio remained “well-collateralised” with low arrears and limited exposure to high loan-to-value (LTV) bands.
Raj Makanjee, chief executive of Aldermore, said: “Aldermore has delivered a resilient underlying operational performance demonstrating the strength of the business despite ongoing macroeconomic uncertainty, competitive market conditions and an evolving regulatory landscape. We have grown lending and deposits while maintaining disciplined underwriting, effective cost control and robust capital and liquidity positions.
“We have continued to invest in the capabilities and operating model needed to support sustainable, long-term growth. The acquisition of the Octane lending business assets and operating capabilities in March demonstrates this strategy in action, strengthening our lending proposition and deploying our balance sheet in a disciplined way to support customers whose financial needs require a more specialist approach.”
He added: “FirstRand’s process to explore a potential sale of the group is ongoing, but our priorities remain clear. Looking ahead, we are well-positioned to build on the momentum across the business, support our customers and make continued progress against our strategic priorities.”
