Allica Bank has expanded automated valuation model use in its residential bridging proposition, raising the maximum AVM loan-to-value from 70% to 75% and increasing the maximum AVM-backed loan size from £750,000 to £2 million. This signals growing lender confidence in automated property data for selected, time-sensitive cases.
For brokers, AVMs can potentially reduce turnaround times and make it easier for borrowers to act on refurbishment, auction or chain-related opportunities. The wider market is also pursuing speed: Barclays is reportedly preparing a fast-track remortgage service designed to offer some switchers an offer within 24 hours and completion within five days.
The key limitation is that automation is not a substitute for property judgement. Advisers should establish when an AVM is appropriate, flag features that can make a desktop valuation unreliable—such as unusual construction, condition issues, lease complications or limited comparable evidence—and make clients aware that a lender can still require a physical valuation or revise the loan terms.