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.

 

LenderResidential PurchaseResidential re-mortgageBTL PurchaseBTL re-mortgage
Accord Mortgages75%85%65%65%
Aldermore85%85%75%75%
Bank of Ireland95%90%75%75%
Barclays60%85%60%75%
Bath BSNo ValuationsNo ValuationsNo ValuationsNo Valuations
Beverley BSTBCTBCTBCTBC
Bluestone MortgagesTBCTBCTBCTBC
BM SolutionsSee Halifax.See Halifax.60%60%
Cambridge BSTBCTBCTBCTBC
Chorley BSTBCTBCTBCTBC
ClydesdaleNo ValuationsNo ValuationsNo ValuationsNo Valuations
Coventry BS85% houses / 50% flats85% houses / 50% flats65%65%
Earl Shilton BSNo ValuationsNo ValuationsNo ValuationsNo Valuations
The Family BS60%60%60%60%
Fleet MortgagesN/AN/ANo ValuationsNo Valuations
Foundation Home LoansNo ValuationsNo ValuationsNo ValuationsNo Valuations
Furness BSTBCTBCTBCTBC
Gatehouse BankTBCTBCTBCTBC
Halifax60%60%No ValuationsNo Valuations
Hanley & EconomicTBC70%TBC70%
Hinckley & RugbyTBC60%TBC60%
HodgeTBC60%TBC60%
HSBC85%80%TBCTBC
Ipswich BSTBC75%TBC75%
Kensington70%70%70%70%
Kent RelianceNo ValuationsNo ValuationsNo ValuationsNo Valuations
KeystoneTBCTBCTBCTBC
LandbayN/AN/ANo ValuationsNo Valuations
Leeds BS70%70%70%70%
LendinvestTBCTBCTBCTBC
Mansfield BSTBCTBCTBCTBC
Marsden BSTBCTBCTBCTBC
The Melton BSNo ValuationsNo ValuationsNo ValuationsNo Valuations
Metro Bank80%80%TBCTBC
More2LifeTBCTBCTBCTBC
Nationwide BSBusiness as usualBusiness as usualCase by CaseCase by Case
NatWestBusiness as usualBusiness as usualBusiness as usualBusiness as usual
Newbury BSTBCTBCTBCTBC
Newcastle BSTBCTBCTBCTBC
Nottingham BSTBCTBCTBCTBC
Pepper MoneyNo ValuationsNo ValuationsNo ValuationsNo Valuations
Platform75%75%TBCTBC
Precise MortgagesNo ValuationsNo ValuationsNo ValuationsNo Valuations
Principality80%80%75%75%
Progressive BSTBCTBCTBCTBC
Santander75%75%No ValuationsNo Valuations
Scottish Widows60%60%See BM SolutionsSee BM Solutions
Skipton BSNo Valuations75%No Valuations75%
Swansea BSNo ValuationsNo ValuationsNo ValuationsNo Valuations
TMLBusiness as usualBusiness as usual
TMWSee Nationwide.See Nationwide.Business as usualBusiness as usual
Tipton BSTBCTBCTBCTBC
TogetherNo ValuationsNo ValuationsNo ValuationsNo Valuations
TSBNo Valuations80%No ValuationsNo Valuations
Vida Home LoansNo ValuationsNo ValuationsNo ValuationsNo Valuations
Virgin MoneyTBC60% up to £300KTBC55% up to £275K

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