AVM covers applications up to £500,000 or 75% LTV for purchases and remortgages
Specialist lender Vida Homeloans has integrated an automated valuation model (AVM) into its mortgage application system, aiming to improve turnaround times for both buy-to-let and residential applications.
The update follows a partnership with Rightmove and forms part of the lender’s broader investment in digital tools to streamline operations and offer faster decisions to mortgage brokers and their clients.
AVMs are data-driven tools that estimate a property’s market value using algorithms and information such as recent sales data and regional pricing trends. They remove the need for traditional, in-person property surveys by a chartered surveyor, offering a faster and often more cost-effective alternative.
Vida’s AVM solution will apply to mortgage applications up to £500,000 or a maximum of 75% loan-to-value (LTV), for both purchases and remortgages. Where a property falls outside the model’s criteria or data is insufficient, a standard physical valuation will be conducted.
The AVM launch marks a further step in the company’s mortgage transformation roadmap, which has progressed since its parent, Vida Bank, secured a UK banking licence in November 2024.
“We’re always looking for smarter ways to improve our service,” said Tommy Wight (pictured), chief operating officer at Vida Homeloans. “Introducing AVMs helps us speed up decisions and provide greater certainty for our brokers and their clients.
“By leveraging technology and partnering with industry leaders like Rightmove, we’re able to keep improving efficiency and stay responsive to what the market needs, while continuing to use human-underwriting to assess each case individually.
“This is another major step forward for Vida Homeloans, with Property Decisioning forming a core part of our investment in a multi-year Mortgage Transformation Programme.”
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