Automated Valuation Model Status – Which lenders are still carrying out automated or desktop valuations.
What are automated valuations?
The following is taken from the wikipedia entry on the subject:
Automated valuation model (AVM) is the name given to a service that can provide real estate property valuations using mathematical modelling combined with a database. Most AVMs calculate a property’s value at a specific point in time by analyzing values of comparable properties. Some also take into account previous surveyor valuations, historical house price movements and user inputs (e.g. number of bedrooms, property improvements, etc.).
Appraisers, investment professionals and lending institutions use AVM technology in their analysis of residential property. An AVM is a residential valuation report that can be obtained in a matter of seconds. It is a technology-driven report. The product of an automated valuation technology comes from analysis of public record data and computer decision logic combined to provide a calculated estimate of a probable selling price of a residential property. An AVM generally uses a combination of two types of evaluation, a hedonic model and a repeat sales index. The results of each are weighted, analyzed and then reported as a final estimate of value based on a requested date.
An AVM typically includes:
- An indicative market value for many residential properties nationwide.
- The tax assessor’s indication of value, if available.
- Information on a subject property and recent sales history.
- Comparable sales analysis of like properties.
Essentially AVM’s mean lenders dont need to physically visit a property in order to assess its value, however one of the main disadvantages is that it doesent factor the condition of the property which is a major problem for those who have improved property and wish to leverage the increase in value. Its also very vulnerable to areas that have seen very little sales volumes, or areas that have seen many low value sales that bring down the averages.
Which lenders are still operating on an AVM model and to what Loan to Values?
The table below summarises the information as of the 6th April 2020.
| Lender | Residential Purchase | Residential re-mortgage | BTL Purchase | BTL re-mortgage |
|---|---|---|---|---|
| Accord Mortgages | 75% | 85% | 65% | 65% |
| Aldermore | 85% | 85% | 75% | 75% |
| Bank of Ireland | 95% | 90% | 75% | 75% |
| Barclays | 60% | 85% | 60% | 75% |
| Bath BS | No Valuations | No Valuations | No Valuations | No Valuations |
| Beverley BS | TBC | TBC | TBC | TBC |
| Bluestone Mortgages | TBC | TBC | TBC | TBC |
| BM Solutions | See Halifax. | See Halifax. | 60% | 60% |
| Cambridge BS | TBC | TBC | TBC | TBC |
| Chorley BS | TBC | TBC | TBC | TBC |
| Clydesdale | No Valuations | No Valuations | No Valuations | No Valuations |
| Coventry BS | 85% houses / 50% flats | 85% houses / 50% flats | 65% | 65% |
| Earl Shilton BS | No Valuations | No Valuations | No Valuations | No Valuations |
| The Family BS | 60% | 60% | 60% | 60% |
| Fleet Mortgages | N/A | N/A | No Valuations | No Valuations |
| Foundation Home Loans | No Valuations | No Valuations | No Valuations | No Valuations |
| Furness BS | TBC | TBC | TBC | TBC |
| Gatehouse Bank | TBC | TBC | TBC | TBC |
| Halifax | 60% | 60% | No Valuations | No Valuations |
| Hanley & Economic | TBC | 70% | TBC | 70% |
| Hinckley & Rugby | TBC | 60% | TBC | 60% |
| Hodge | TBC | 60% | TBC | 60% |
| HSBC | 85% | 80% | TBC | TBC |
| Ipswich BS | TBC | 75% | TBC | 75% |
| Kensington | 70% | 70% | 70% | 70% |
| Kent Reliance | No Valuations | No Valuations | No Valuations | No Valuations |
| Keystone | TBC | TBC | TBC | TBC |
| Landbay | N/A | N/A | No Valuations | No Valuations |
| Leeds BS | 70% | 70% | 70% | 70% |
| Lendinvest | TBC | TBC | TBC | TBC |
| Mansfield BS | TBC | TBC | TBC | TBC |
| Marsden BS | TBC | TBC | TBC | TBC |
| The Melton BS | No Valuations | No Valuations | No Valuations | No Valuations |
| Metro Bank | 80% | 80% | TBC | TBC |
| More2Life | TBC | TBC | TBC | TBC |
| Nationwide BS | Business as usual | Business as usual | Case by Case | Case by Case |
| NatWest | Business as usual | Business as usual | Business as usual | Business as usual |
| Newbury BS | TBC | TBC | TBC | TBC |
| Newcastle BS | TBC | TBC | TBC | TBC |
| Nottingham BS | TBC | TBC | TBC | TBC |
| Pepper Money | No Valuations | No Valuations | No Valuations | No Valuations |
| Platform | 75% | 75% | TBC | TBC |
| Precise Mortgages | No Valuations | No Valuations | No Valuations | No Valuations |
| Principality | 80% | 80% | 75% | 75% |
| Progressive BS | TBC | TBC | TBC | TBC |
| Santander | 75% | 75% | No Valuations | No Valuations |
| Scottish Widows | 60% | 60% | See BM Solutions | See BM Solutions |
| Skipton BS | No Valuations | 75% | No Valuations | 75% |
| Swansea BS | No Valuations | No Valuations | No Valuations | No Valuations |
| TML | Business as usual | Business as usual | ||
| TMW | See Nationwide. | See Nationwide. | Business as usual | Business as usual |
| Tipton BS | TBC | TBC | TBC | TBC |
| Together | No Valuations | No Valuations | No Valuations | No Valuations |
| TSB | No Valuations | 80% | No Valuations | No Valuations |
| Vida Home Loans | No Valuations | No Valuations | No Valuations | No Valuations |
| Virgin Money | TBC | 60% up to £300K | TBC | 55% up to £275K |
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