The bank said that the new option can be used on purchases, refinances, light refurbishment projects and capital raising, providing a streamlined solution for standard residential properties.
Andrew Ferguson, commercial director – mortgages, BTL and bridging at United Trust Bank, said that the changes “are all about delivering what brokers and their clients value most – speed, certainty and reliability”.
“We are constantly looking at ways to remove drag and delay from the bridging process and make it quicker and easier for brokers to do business with us. Expanding the use of AVMs (automated valuation models) and introducing desktop valuations gives brokers more routes to a faster offer, greater certainty at an earlier stage, and a significantly quicker and more assured path to a successful completion.”
The bank said that AVMs will now be available on bridging loans up to £1m to a maximum of 75% loan to value (LTV), with the criteria changes introduced by UTB since the start of the year enabling a significantly higher proportion of cases to benefit from this faster and cost-free valuation method.
In 2025, the bank employed AVMs on around one-third of bridging cases. This year that proportion is expected to double to around two-thirds, Ferguson said.
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Benefits and limitations
AVMs became popular during the pandemic, when it was difficult to visit properties due to restrictions. They use comparable data, such as historic prices in the area, to come to a decision about lending.
However, they are not suitable for all properties. With an AVM, a valuer does not visit the property, so the internal and external condition of the property is not assessed. Meanwhile, if a site is hard to assess or there is little historic data, there will not be a satisfactory outcome.
A desktop valuation may provide a better insight than an automated decision, with a surveyor manually investigating comparable property valuation data, together with geographical location, market influences and liquidity to come to a decision. It is usually cheaper and quicker than a physical survey.
