An AVM will be an option for borrowers who are taking out a standard bridging loan at a maximum purchase price of £500,000 and at a maximum gross loan to value (LTV) of 50%, at a cost of £99.
Alan Cleary (pictured), managing director of Precise Mortgages said that prior to the introduction of the system, research was carried out to analyse how much of the company’s bridging lending would have been eligible for the AVM based on the previous 12 months’ applications.
“We found that over 16% would have passed,” he said. “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 AVMs will also streamline processes for all our underwriters, with improvements in completion times across a number of other cases.”
Clearly said an AVM application can be carried out instantaneously, whereas it could have taken up to five days for a decision to be processed with the old system.