Simplicity and speed: How AVM products give us an edge

At the start of this year, we became the first dedicated buy-to-let lender to integrate Automated Valuation Models (AVMs) into our products. Last week, we launched a new range of two-year and five-year products available through AVMs, and these past nine months have provided us with valuable insights into the benefits AVMs can offer our clients.

But what exactly is an AVM?

Simply put, an AVM is a valuation that uses statistical models and existing property data to calculate property and rental values. This method is particularly effective for standard properties, like those in housing estates or rows of terraced houses, where recent comparable sales are available.

We’ve seen first-hand how AVMs can transform the buy-to-let mortgage process. In a fast-paced market, timing is crucial, and AVMs help speed up the process significantly. An AVM application is typically three times faster than a standard application, with some cases receiving offers within 24 hours of the decision in principle. Additionally, AVMs can save clients an average of £500 by eliminating valuation fees—one of our clients even saved £4,000 across their portfolio!

However, AVMs aren’t suitable for every property. They struggle with unique or complex properties, like large, detached houses or multi-unit blocks, where finding comparable data is challenging. For this reason, our AVM products are only available for standard properties, with our latest range offering competitive rates and up to 75% loan-to-value (LTV).

While AVMs have their limitations, especially when there’s a gap in valuation data—as we saw during the pandemic—the technology has advanced rapidly.

Modern AVMs now incorporate detailed property data, making them more reliable and faster than ever.

In conclusion, while physical valuations will always have their place, AVMs offer the simplicity and speed clients expect in today’s fast-paced world.

At Landbay, we’re committed to helping our broker partners support their landlord clients with innovative products that meet these expectations. Our continued focus on product innovation and market responsiveness ensures we remain agile and well-equipped to meet a broad range of landlord requirements.

Visit our full range of AVM products here.