Aldermore Bank

Aldermore is a British bank that lends and takes savings, but does not run the everyday banking most high street names offer. It has no current accounts, no branches and no mobile app. What it does offer is a range of personal savings accounts, cash ISAs, and mortgages, including buy to let mortgages and mortgages designed for self-employed applicants¹. Alongside personal savings it also provides business savings accounts, corporate deposits, client money accounts and accounts for independent schools, colleges and universities¹.

Because there is no current account, every savings customer links their Aldermore account to a "nominated account": a current account held with another UK bank or building society, which is where money comes from and goes back to. Savings are managed through Aldermore's internet banking site on a browser. Deposits are protected up to £120,000 per eligible person¹.

Aldermore savings accounts and how each one works

Aldermore's personal savings range covers the main types of savings account. Fixed rate savings accounts come in terms of 1, 2, 4 and 5 years, and can be opened in one name or jointly with someone else⁵. Notice accounts require you to give notice before withdrawing, and pay interest either back into the Aldermore account, to another eligible Aldermore savings account, or to your nominated UK bank or building society account⁶. There is also a Regular Saver account, which allows transfers out or withdrawals whenever you like, to your nominated account or to other Aldermore personal savings accounts that accept deposits⁷.

The nominated account is the hinge of every Aldermore savings account. It must be a UK bank or building society current account that you can transfer money from and send money to, and any withdrawals out of your Aldermore account, including interest payments, will be sent there⁸. You can have up to two account holders per account, and where an account is joint, Aldermore will usually act on a sole instruction from either holder unless a dispute is advised in writing, in which case the account must be operated by post with both signatures⁹.

Paying money in is electronic only. Deposits can be made by Faster Payments, BACS, CHAPS or standing order from your nominated account, or by transfer from an existing Aldermore personal savings account. Aldermore does not accept deposits by cash, cheque or banker's draft¹⁰. Interest on fixed rate accounts is earned from the date Aldermore receives your money, and can be added to your Aldermore account, paid to another Aldermore account that allows deposits, or paid to your nominated account⁵.

For a wider explanation of how these account types compare, see our guide to savings accounts.

Cash ISAs: types, flexibility and transfers in

Aldermore provides cash ISAs only, not stocks and shares ISAs¹¹. The range includes an Easy Access Cash ISA, Notice Cash ISAs, Reward Cash ISAs and Fixed Rate Cash ISAs¹². Interest earned in a cash ISA is tax free and does not count towards your Personal Savings Allowance, and Aldermore states there are no fees or charges for standard account services¹². The annual ISA allowance for the 2026/2027 tax year, which ends 5 April 2027, is £20,000, apart from the Lifetime ISA, which has a limit of £4,000¹².

All of Aldermore's cash ISAs accept transfers in from other providers, so you can move an existing cash ISA across¹². Transfers are done electronically if your existing provider subscribes to the electronic Cash ISA transfer platform; if it does not, Aldermore sends a printed ISA transfer form, and any transfer forms must be returned within 14 calendar days of the date of application¹². The process should take no longer than 15 business days for cash ISA transfers, and 30 calendar days for stocks and shares ISA transfers into a cash ISA¹⁴. Fixed Rate Cash ISAs accept transfers in at the account opening stage only¹³.

All of Aldermore's cash ISAs are flexible, which means money withdrawn and replaced within the same tax year keeps its tax-free status. If you transfer an ISA from another provider into an Aldermore cash ISA, it automatically becomes flexible, though Aldermore notes that if you later transfer to another provider, that provider's terms apply¹². To close a Notice, Easy Access or Reward Cash ISA, you log on and withdraw all your money, which closes the account, with funds moved to your nominated account and credited within 2 business days¹⁷.

The rules around ISAs, allowances and transfers are explained in our guide to ISAs.

Aldermore mortgages: owner-occupied and buy to let

Aldermore's mortgage lending has two strands. On the residential side it lends to self-employed borrowers, including limited companies and sole traders, "from builders to plumbers, techies to contractors", assessing every application on its own merits¹⁸. For self-employed applicants with two years' accounts, it offers the flexibility to use the highest combination of salary and dividend, or salary and share of net profit, and for self-employed contractors with no other employees it can consider an affordability assessment on an employed gross income basis¹⁸. Applications are considered on an individual basis, including for people who have been rejected by another lender, and a decision in principle is available before you have found a home to buy¹⁹.

Buy to let is a significant part of the business. Aldermore lends to all types of landlord, from those with one property to landlords who operate under a limited company structure and portfolio landlords²⁰. It offers both interest only and capital repayment buy to let options, and landlords can hold a portfolio of up to £5m with Aldermore, with multiple properties on one account and no limits on their background portfolio²⁰.

New mortgage customers cannot apply directly: Aldermore states that new customers looking for a mortgage should contact a mortgage broker²⁰. Existing customers deal with Aldermore itself for changes to their mortgage, as the next section explains. For how mortgages work generally, see our guide to mortgages, and for the process of buying a home, our guide to buying a home.

Changing your mortgage: switching rate, borrowing more and moving home

Existing Aldermore mortgage customers can move to a new rate without remortgaging elsewhere. All existing customers can be considered for a product switch provided their mortgage payments are up to date, and a switch can be made up to 17 weeks before the end of the current rate or early repayment charge period²¹. Applications are made online through Aldermore's product switch application portal, and switches are offered on an "execution only" basis, meaning Aldermore does not advise on which rate to choose²². Customers whose fixed rate has already ended and who are on the variable Aldermore Managed Rate (AMR) or Aldermore Mortgages Transition Rate (AMTR) can switch at any time²². For buy to let accounts, you cannot have any ground rent arrears with Aldermore²².

If you want to borrow more against your property, Aldermore's qualified mortgage advisers can confirm whether you are eligible and discuss your options²³. Other changes are also possible, subject to eligibility and lending policy at the time: you may be able to change the term of your mortgage, or change your repayment type during its lifetime²³.

Two things you cannot do. First, Aldermore cannot transfer your current mortgage to a new property, so moving home means paying off the existing mortgage and taking out a new one²³. A redemption statement can be requested through the online mortgage request form, by email, in writing, or by phone for an indication of the redemption figure, for both residential and buy to let mortgages²⁴. Second, you need Aldermore's permission before you rent your home²³. Independent guidance confirms this is normal: most mortgage agreements do not allow renting out your home without the lender's consent, and most allow renting a room only with consent, while renting out the whole property may also mean your mortgage interest increases²⁵. Anyone you allow to deal with Aldermore on your mortgage must have valid permission from everyone named on it²³.

Help with mortgage payments: interest only and term extensions

Aldermore has signed up to the Mortgage Charter, which gives struggling borrowers two temporary options²¹. The first is a switch from capital repayment to interest only for 6 months. Aldermore publishes an illustrative example showing how the monthly payment falls during the switch and what the overall cost of the arrangement is, based on its own assumptions; because the figures depend on your balance, rate and remaining term, Aldermore's own example and its mortgage team are the place to check what a switch would mean for you²¹. As long as you return to full payments at the end, your credit score will not be impacted²¹.

The second option is a term extension. In the same illustrative example, Aldermore shows how extending the term reduces the monthly payment, and what happens if you switch back to the original term at the end of the 6 month period²¹. You can switch back to your original term within 6 months of the extension, your credit score will not be affected, and the term cannot be extended past your expected retirement age²¹. Either way, the request must be completed no later than 15 working days before your next direct debit date²¹.

These options sit within a wider set of tools for mortgage arrears identified by independent advisers, which include extending the mortgage term and converting to interest only for a period to help clear arrears²⁶. Free help is available: charities such as Independent Age publish guidance on problems paying your mortgage, and Advice NI offers guidance on housing-related debts in Northern Ireland²⁶. Aldermore also has dedicated help pages for customers worried about payments, and says it will help you identify other organisations that can give expert support²⁷.

Who can apply and how to open an account

For savings accounts, you need to be aged 18 or over, and for notice accounts you must be resident in the UK and only tax resident in the UK; notice accounts cannot be held in trust or by US persons⁶. Applications are made online at any time of day, and all you need to start is the sort code and account number of your personal UK bank or building society account⁵. As with all UK savings accounts, Aldermore checks your identity and address before opening an account, and also carries out fraud checks⁹.

For cash ISAs, the information needed at application is your name, address, date of birth, National Insurance number, employment and income details, the sort code and account number of your nominated UK current account, and the sort code and account number, or roll or reference number, of any ISAs you want to transfer from other providers¹⁴. These details are checked electronically, and if Aldermore cannot verify them it may ask for additional documents¹⁴. Accounts under power of attorney cannot be opened online: you need to contact Aldermore instead¹⁴.

Existing customers open new accounts by logging in to internet banking rather than applying from scratch¹⁴. Fixed rate accounts can be opened in sole or joint names⁵, and joint accounts can have up to two account holders⁹. For mortgages, new customers apply through a broker²⁰, while existing customers use the product switch portal or contact Aldermore's mortgage advisers directly²³.

What happens when a fixed term account matures

Aldermore's fixed rate savings accounts run for terms of 1, 2, 4 or 5 years⁵. Before maturity, Aldermore contacts customers with instructions, and those instructions can be given through internet banking²⁹. The rates offered at maturity can be different from the rates currently available to new customers: Aldermore offers exclusive fixed term rates to existing customers whose accounts are maturing³⁰. If rates go down between the offer email and maturity, Aldermore guarantees the rate shown in the email, as long as you provided your instructions before the account matured³⁰.

One restriction matters at maturity: you cannot move money directly between ISAs and non-ISA accounts, because they are treated differently for tax purposes³¹. From a non-ISA account to an ISA, you withdraw your funds when the account matures, then open and fund a new ISA, subject to the annual ISA limits³¹. From an ISA to a non-ISA account, you can withdraw the funds at maturity, but once withdrawn they lose their tax-free status³¹.

Managing your account online and paying in

All day-to-day management of Aldermore savings happens in internet banking. From it you can view rates and balances, view and print transaction statements, submit withdrawal and transfer instructions, open another account, update personal information, give maturity instructions, set savings goals, personalise account names or images, and give notice of withdrawal where your account terms require it²⁹. Logging in needs your Customer ID, password and memorable details²⁹. If you forget your password, you can reset it online in a few moments or contact Aldermore; you will need your Customer ID and registered email address to start, Aldermore sends a unique link to that email, and you then need your Customer ID and nominated bank account details to complete the reset²⁹.

Paying into a fixed rate account is done by logging in and clicking "Open New Account" to see the range, with deposits by Faster Payments, BACS, CHAPS or standing order from your nominated account¹⁰. One point that puzzles customers: Aldermore is not a clearing bank, so when you pay in a deposit it goes to a Barclays account first, then into your Aldermore account¹⁰. Aldermore is live with Confirmation of Payee, and states that payments should show a match as long as you quote the details it provides³³. Future transfers and regular instructions can be cancelled in internet banking by selecting "Statement" from the Account Options menu, finding the unprocessed instruction, and deleting it³⁴.

There is a cooling-off right: if you change your mind within 14 calendar days of opening your account, Aldermore will cancel the account and return your money without penalty or notice¹². Aldermore also reserves the right to withdraw accounts from sale at any time, which applies across the fixed rate, notice, Regular Saver and cash ISA ranges⁵.

Support, complaints and bereavement

Aldermore's support offer includes providing support options if you are struggling to make your payments, liaising with someone you trust, offering a range of ways to communicate, supporting you with adjusting your computer to make the website easier to use, and helping you identify other organisations that can give expert support²⁷. It recognises that circumstances can change, sometimes without warning, and maintains dedicated help pages for customers with money worries²⁸. If you need to verify that a contact is genuinely from Aldermore, use the details on your existing Aldermore documentation or the contact us page of its website³⁵.

For bereavement, the process depends on the balance and the account type. Where the balance across all the deceased's Aldermore accounts is less than £35,000, Aldermore needs the original or a copy of the death certificate, a completed Administration of Small Estates Form filled in by the personal representatives, and an Account Closure Form signed by all personal representatives; the balance is then sent to the personal representative by electronic transfer or cheque, and Aldermore responds about five working days after receiving the paperwork³⁶. Where the balance is more than £35,000, it needs the original Sealed Grant of Probate (or Certificate of Confirmation in Scotland) or Letters of Administration, plus the signed Account Closure Form³⁶.

For accounts in joint names, sending the original or a copy of the death certificate is enough: Aldermore changes the account into the survivor's name and confirms when this is done³⁶. Where the customer died after 6 April 2018, their ISA can be left open for up to three years: no more money can be added, the tax advantage is retained, and the ISA cannot be transferred to another ISA manager during that time; after three years it must be closed or moved to a non-ISA Easy Access Account³⁶. Aldermore can also pay a funeral director directly from the account on receipt of the original funeral invoice, and pay inheritance tax to HMRC using Form IHT423 with the HMRC payment slip³⁶. In Northern Ireland, information about Bereavement Support Payment, including the application form, is available through nidirect, and an application needs your bank or building society account details³⁶.

Scams and fraud: how Aldermore handles them

Aldermore's advice on a suspicious approach is "Stop, check, contact"³⁵. It asks customers to let it know straight away if they think they have been targeted by a scam, because reporting helps it identify fraudulent activity, protect you, and reduce the risk of similar attacks affecting others³⁵. To check whether a communication is genuine, use the contact details on your existing Aldermore documentation or on its website, never the details in the message itself³⁵.

Aldermore looks out for signs of APP fraud, where a person is tricked into sending money to a fraudster³⁶. If you have been a victim, you can make a reimbursement claim, which must be submitted within 13 months of the final fraudulent payment³⁰. The scheme covers payments made on or after 7 October 2024; payments before that date, or claimed more than 13 months after the final payment, are excluded³⁰. Claims will also not be reimbursed where the claimant committed fraud or was grossly negligent, for transactions outside the UK, payments made through non-bank systems, cheques or cash, payments to an account you control, civil disputes, and payments through credit unions, municipal banks or national savings banks³⁰. In some cases Aldermore may ask you to cooperate with the police, directly or through the bank, to help resolve the fraud³⁶. Our guide to scams and fraud explains these schemes in more detail.

How your savings are protected

Money held with Aldermore Bank Plc is covered by the Financial Services Compensation Scheme up to £120,000 per eligible person¹. The firm appears on the Bank of England's list of UK banks that accept deposits³. The FCA Register lists Octane Capital as a current trading name of the firm, and previous names including Ruffler Bank Plc². The company behind the brand, company number 00947662, is active and was incorporated on 10 February 1969⁴.

Protection has edges worth knowing. The £120,000 limit is per eligible person, so balances across all your Aldermore accounts in one name count together. Confirmation of Payee helps you check you are sending money to the right place before you pay³³, and the APP fraud reimbursement scheme covers qualifying payments from 7 October 2024, within the exclusions above³⁰. Our guide to consumer protection explains what the FSCS does and does not cover.