The introduction of an Automated Valuation Model will bring significant improvements to the time that it takes for some bridging loan valuations to be completed, shortening the timescales to minutes instead of days.
If the bridging loans fit the criteria below the customer will have the choice to use the AVM instead of a physical valuation at a fee of £99, representing a significant cost and time saving.
An AVM will be optional provided the case is a standard bridge with a max purchase price/property value of £500,000. It should also be a maximum loan to value of 50% and have an AVM confidence level of A, B, or C.
Precise Mortgages 'has spent several months assessing the risks' and is confident that the criteria and controls in place are 'robust'.
Alan Cleary, Managing Director of Precise Mortgages says:
“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%.
“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.”
