Hampshire Trust Bank (HTB) has launched an automated valuation model (AVM) option as part of its bridging loan proposition for deals up to gross 65% loan to value (LTV).
Automated valuations will be accepted on residential investment properties, including houses, low-rise flats and small houses in multiple occupation (HMOs) for properties valued between £250,000 and £1m.
The introduction of the valuation option is designed to reduce costs and improve turnaround times for scenarios such as auction purchases, portfolio transactions, and urgent completions.
The decision is HTB’s latest move to expand its lending options following a change of criteria that means brokers can now place restricted holiday lets – a property that has planning or usage restrictions – with the lender.
Specialist lenders turn to AVMs
AVMs have typically been used for mainstream lending deals such as low-LTV purchases and remortgages on residential properties, but the option is increasingly being taken up by specialist lenders.
Newly launched ModaMortgages has embraced automation for its buy-to-let (BTL) applications, while bridging lender Lendco introduced AVMs for bridging loans in December.
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Spring Capital added second charges to its list of the types of lending permissible using an automated valuation. AVMs are also accepted on its range of regulated and unregulated bridging loans.
Lorenzo Satchell (pictured), sales director for bridging finance at HTB, said: “This is what brokers have been asking for: a faster, simpler, and more affordable valuation option. By listening to their feedback and introducing the AVM option, we’re giving brokers a practical advantage, especially when time is critical. It’s another way HTB is making a real difference for brokers and their clients.”