Allica Bank has expanded its automated valuation model (AVM) proposition for bridging finance, lifting the maximum loan-to-value from 70% to 75% and increasing the maximum AVM-supported loan from £750,000 to £2m. The change illustrates how lenders are becoming more willing to use automated property-data tools in higher-value and higher-leverage cases.
For advisers, faster valuation routes may improve certainty and speed for suitable clients, particularly where an auction, chain break or time-sensitive purchase is involved. However, AVM acceptance is not the same as guaranteed suitability: advisers should establish the lender’s property, location, condition and exit-strategy criteria, and explain when a physical valuation may still be required.
AI implication: AVMs can reduce friction, but their output relies on the quality and relevance of local comparable data. Human judgement remains important where properties are unusual, recently altered, rural, mixed-use or otherwise poorly represented in the data.