Editor's note: This brief was summarised by The Property AI Team from a report by Mortgage Solutions. Read the original article for full details.
Metro Bank Considers Bid for Aldermore in Potential £2bn Deal
Metro Bank is considering making an offer to acquire Aldermore Bank, according to reports. The potential deal could be worth around £2 billion, and comes after Aldermore was sold by its parent company FirstRand in April.
Reports indicate that Metro Bank is one of several lenders evaluating a bid for Aldermore Bank. Shawbrook Group and Lloyds Banking Group are also reportedly considering offers. The sale follows FirstRand’s decision to put Aldermore on the market, citing concerns over the Financial Conduct Authority’s motor finance compensation scheme and its impact on finances.
FirstRand described Aldermore as “resilient” and “sustainable”, but stated that owning a UK consumer finance entity no longer fit its risk appetite. Since selling its residential loan book to NatWest in 2024, Metro Bank has focused on the specialist lending market. The bank completed a record £2 billion in commercial lending in 2025 and reported a profit of £98.1 million, reversing its 2024 loss.
Both Metro Bank and Aldermore declined to comment on the reports. The situation remains at an early stage, with no formal offer announced.
For UK letting agents and inventory clerks, developments in the specialist lending sector may influence the availability and terms of property finance products in the future.
Source: Mortgage Solutions