The partnership will see Hometrack supply TSB’s mortgage team with a combination of valuation and risk services, including the use of AVM for loan decisions, for the next three years.
The challenger bank lent £6.6 billion of mortgages in 2016, an increase of more than a third on the previous year.
David Catt, chief operating officer at Hometrack, said that with AVMs now having been around for more than a decade, lenders have become much more comfortable with the technology and its capabilities. He noted that when the firm first came to the market, lenders were prudent in when they opted to use AVMs rather than physical valuations, but that has changed.
“Consumers expect high levels of service and an instant response – it is inconceivable to a young person that they have to wait five days for a valuation,” he continued, adding that AVMs not only allow lenders to deliver improved speed but also reduced costs.
Back in February it was announced that Zoopla had agreed to buy Hometrack for £120 million, though it will continue to operate as a standalone firm and brand.
Iain Laing, chief risk officer at TSB, said: “The data and insight that Hometrack provides to our mortgage business informs our understanding of collateral value and risk, increases our efficiency and helps us deliver higher quality service to our customers.”
