Allica Bank has expanded the use of the Automated Valuation Model (AVM) in its bridging financing offering.
The bank has increased the maximum LTV from 70% to 75%, and the maximum loan size for AVM has moved from £750,000 to £2 million.
She says the changes open AVM’s path to much larger residential bridging deals.
The AVM is available for both residential purchases and refinances that meet Allica standards.
Below market value purchases of up to 90% of the purchase price are also available, while title indemnity insurance is available as a standard alternative to full legal work.
“Speed and certainty are crucial in bridging, especially for borrowers who need to move quickly when the opportunity arises,” says Steve Palfreyman, head of sales bridging finance at Alica Bank.
“Waiting for a physical assessment can add time they simply don’t have, which is why we conducted extensive research to compare our AVMs with physical assessments to understand where we can safely remove this step in eligible cases – saving valuable time for brokers and their clients.”
“Expanding AVM-based bridging to 75% LTV on loans up to £2m means we can now offer this option on larger residential bridging cases.”
“For brokers, this means a simpler path through evaluating qualified trades, potentially saving costs for their clients and getting them to move more quickly.”
In July, Allica Bank reduced its arrangement fees on commercial property loans of £750,000 and above until September 30, aiming to boost business growth.
