We’ve added AVMs to our bridging finance range!

In the 15 years since MT Finance was launched, we have never stood still. From new products to new departments, we are always looking at how we can best support both brokers and their clients. We know that for many of our intermediary partners, automated valuation models (AVMs) have been high on the wish list. After a lot of work behind the scenes, we are thrilled to announce that MT Finance now offers AVMs.

Launched in partnership with Hometrack, they are available for qualifying regulated and unregulated bridging finance applications, up to a maximum loan-to-value (LTV) of 60%, and a maximum property value of £750,000. But how will they be implemented? Read on to find out more about the benefits of AVMs as well as how they will work in practice.

What is an AVM?

An AVM is a way of calculating a property’s value without the need for a valuation. By combining mathematical or statistical modelling with databases of similar properties, real time statistics and recent transactions, a valuation is then provided. This happens within seconds.

What are the benefits?

Using an AVM has numerous benefits. First and foremost, it increases efficiency in terms of time, money, and resources. AVMs can save up to a week, or even more, on a bridging loan application and they are completely free. Additionally, they provide absolute certainty as they determine a property’s value at the time of application. This allows us to confidently issue terms that will not be affected by any changes in valuation.

How will an AVM at MT Finance work?

AVMs are now available on standard residential property applications. As well as having a maximum LTV of 60% and a maximum value of £750,000, properties need to have a minimum Hometrack confidence level of 5+.

Key criteria includes:

> Available for regulated and unregulated bridging finance applications

> Standard residential property only

> First and second charges

> Up to a maximum of 60% LTV

> Up to a maximum property value of £750,000

> Minimum Hometrack confidence level of 5+

> Up to a maximum loan size of £450,000 – including cases involving multiple securities

Once we are satisfied that the property meets all our criteria, we will undertake an AVM and in less than a minute, we will have the report. If it has passed, then the full application will be sent to our underwriters and it can go straight to legals, therefore saving the client days, if not weeks.

While we hope most properties that are eligible for an AVM will pass, there may be instances when this doesn’t happen. In this scenario, we will inform you immediately and provide you with valuation quotes from our panel of RICS-approved surveyors for your client to choose from. This will then enable us to progress with the case as quickly as possible.

Find out more

As with every application, we’re always here to support you and your client. Whether you’d like to find out more about AVMs or find out if a case is eligible, simply click here to fill out our quick enquiry form and a member of our team will be in touch shortly.