Coronavirus (COVID-19) Automated Mortgage Valuation Status

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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