The lender said more property types will be accepted on an AVM up to 75% loan to value (LTV). This includes light refurbishment projects.
The property types accepted include individual houses, flats and houses in multiple occupation (HMOs).
Shawbrook said in London and the South East, it would consider properties up to £2m, and in the rest of the UK, properties that are valued up to £1m.
The bank added that photo evidence of the property’s condition is no longer needed.
The firm noted that in cases where an AVM doesn’t meet the usual confidence threshold but the valuation exceeds the purchase price, Shawbrook will accept the AVM with the loan based on 75% of the purchase price.
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Daryl Norkett (pictured), director of real estate proposition at Shawbrook, said: “This update is another step in leveraging our ‘best of both’ proposition by using technology to speed up bridging loans and reduce costs for customers.
“By expanding our AVM parameters and removing unnecessary hurdles, we’re making it easier to get deals over the line quickly, especially where purchase timelines are tight and customers want certainty of their property’s valuation on day one.
“It’s a clear reflection of how we’re using technology to streamline the lending journey that keeps intermediaries at the centre. Together, we can now offer faster initial decisions with fewer conditions – a real win for everyone involved in the process.”
