Precise Mortgages has introduced an Automated Valuation Model (AVM) to improve its bridging lending process, which it says will ‘streamline processes’.
The Automated Valuation Model has been introduced by the lender to improve the time it takes for some bridging loan valuations to be completed and is hoped to shorten timescales from days to minutes.
The AVM is being offered on an optional basis, provided that the case is a standard bridging loan, has a maximum purchase/property value of £500,000, a maximum gross loan-to-value (LTV) of 50% and AVM Confidence Level of A, B or C.
Alan Cleary, managing director of Precise Mortgages, said:
“Before we launched AVMs, we checked how much of our existing bridging lending would have been eligible and, based on the prior 12 months of applications, we found that over 16% would have passed.
Now that we have launched AVMs, I anticipate that number to rise to 20-25%.”
Customers whose bridging loan fits the AVM criteria will now have the choice of either the AVM or a physical valuation, at a cost of £99. The AVM therefore offers customers a substantial saving.
“This is a genuine win-win situation as customers with cases that qualify will be able to save time and money,”
“The introduction of AVM will also streamline processes for all our underwriters, with improvements in completion times across a number of other cases.”
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