Our AVM criteria: which buy-to-let cases qualify

We lend up to 75% LTV using an automated valuation on eligible buy-to-let cases, with no valuation fee to pay. This page sets out the lending policy for AVM cases, so you can check whether a case qualifies before you submit. Product availability changes, so check our live products for what’s on offer today.

AVM criteria at a glance

	Core AVM	Premier AVM
Transaction	Purchase and remortgage	Remortgage only
Maximum LTV	75%	75%
Minimum ICR	125% up to 70% LTV, 130% up to 75% LTV	130%
Maximum loan	£562.5k	£562.5k
Maximum property value	£750k	£750k
Leasehold	At least 85 years remaining	At least 85 years remaining
Blocks	Up to 6 storeys	Up to 6 storeys
Application fee	£249	£249
Valuation fee	None	None

Core AVM policy

Core AVM cases can be purchases or remortgages, up to 75% LTV. The property must be worth no more than £750k. Flats must be in a block of no more than 6 storeys, and leasehold properties need at least 85 years left on the lease.

Not eligible for Core AVM:

• HMOs and multi-unit freehold blocks
• New builds
• Ex-local authority flats with deck access
• Properties above or next to commercial premises
• Self-build properties
• Trading companies
• Holiday lets

Premier AVM policy

Premier AVM is for remortgages only, up to 75% LTV, with a maximum loan of £525k, a minimum ICR of 130% and a maximum property value of £750k. We need to match the property using address lookup, and the automated valuation must come back with a successful result.

The property

• Owned for at least 6 months before the remortgage
• Already mortgaged: we can’t lend on unencumbered properties
• Let on a single tenancy: an assured periodic tenancy, a private residential tenancy in Scotland or an occupation contract in Wales
• Tenanted for at least 3 months before the application, shown by 3 months’ bank statements
• Built from brick and tile
• Leasehold: at least 85 years left on the lease at completion
• Flats: in a building of no more than 6 floors

The applicants

• The main income provider must own the home they live in
• Up to 15 mortgaged buy-to-let properties in the portfolio at completion. Applicants with 15 can’t remortgage to raise funds for another purchase
• Background portfolio at no more than 75% LTV
• Maximum age of 85 at the end of the term

Limited companies

• All shareholders must be individuals
• The applicants must hold at least 75% of the shares
• Any shareholder with under 25% must be an immediate family member of a director
• Trading companies, limited liability partnerships (LLPs) and holiday let companies aren’t eligible

Not eligible for Premier AVM:

• Holiday lets
• New builds and self-build properties
• Properties above or next to commercial premises
• Properties with cladding
• Right to buy and shared ownership properties

Everything else follows our standard policy

AVM cases follow our standard lending policy on applicants, experience, affordability and stress rates. The AVM criteria only change how we value the property. If a case doesn’t meet the AVM criteria, it can still go ahead with a physical valuation.

Frequently asked questions

What’s the maximum LTV with an AVM?
75% LTV, on both Core and Premier AVM.

What is the application fee when choosing an AVM product?
The application fee on AVM products is £249, compared with £199 on our other products.”

Is there a valuation fee with an AVM?
No. As a physical valuation isn’t needed, there’s no valuation fee to pay, saving your client on average £450.

Can I use an AVM on a purchase?
Yes, on Core AVM. Premier AVM is for remortgages only.

Can I use an AVM on an HMO or multi-unit block?
No. HMOs and multi-unit freehold blocks need a physical valuation.

Can I use an AVM on a new build?
No. New builds need a physical valuation.

Can a limited company use an AVM?Yes, special purpose vehicle (SPV) limited companies can. Trading companies can’t use either AVM option, and LLPs can’t use Premier AVM.

What if the case doesn’t meet the AVM criteria?
It can still go ahead with a physical valuation, under our standard lending policy.

Are AVM products always available?
Our AVM policy stays the same, but which products are available changes over time. Check our live products for today’s range.

Are there early repayment charges on AVM products?
Yes, the same as our other fixed rate products, with or without an AVM. On 2 year fixed products the charge is 2% in year 1 and 2% in year 2. On 5 year fixed products it’s 5% in years 1 to 3 and 3% in years 4 and 5.