The technology is available on a new standalone range of five-year fixes
Buy-to-let lender Landbay has announced that it has integrated automated valuation models (AVMs) to speed up offer times significantly.
The incorporation of AVMs is a key feature of Landbay’s latest standalone range of five-year fixed rate products. These products are tailored for properties with a maximum value of £750,000 at 70% loan-to-value. The rates for these offerings start at 4.29% and are stressed at payrate. The range also features a variable fee structure to enhance affordability for prospective borrowers.
Automated valuation models leverage mathematical and statistical modelling in conjunction with comprehensive databases of existing properties and transactions to compute property and rental values.
Our new AVM range has launched! Speedy offers & cost cuts for your buy-to-let clients. Offers fly out 3x faster, save £500 on avg! 🏠
— LANDBAY (@LandbayUK) January 22, 2024
5-yr fixed rates, up to 70% LTV, max £750k property value.
Discover more ➡️ https://t.co/saLexS1txm#BuyToLet #AVM pic.twitter.com/svcpqjnqWu
Through an extensive pilot program, Landbay has determined that AVMs significantly expedite the time required to generate an offer, demonstrating an average speed three times faster than standard application processes. In certain instances, Landbay has been able to extend an offer within a mere 24 hours from the decision in principle.
The lender has also found that using an AVM helps applicants save £500 on average as they do not have to pay valuation fees. In another example from its pilot, one client saved nearly £4,000 in valuation fees on their portfolio.
“There’s no question that in the current market, timing can make or break a deal,” Rob Stanton (pictured), sales and distribution director at Landbay, remarked. “Brokers act with real urgency to support their landlord clients, and there’s no reason why lenders shouldn’t be doing the same. We’re very proud to be the first dedicated buy-to-let lender to integrate AVMs to enhance our offering and the speed of our service.”
Joel Vinnicombe, head of product at Landbay, added that the extensive pilot ahead of the whole of market launch generated tremendous results, giving them the confidence that the AVM provides significant benefits such as speed to offer and lower costs to borrowers.
“We’re looking forward to working with our broker partners to support their landlord clients nationwide,” Vinnicombe said.
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