Landbay has integrated automated valuation models into its loan process, to “significantly” speed up landlord offer times and cut fees.
The buy-to-let lender says its automated valuation models are available on a new standalone range of five-year fixed-rate loans, with a maximum property value of £750,000 at 70% loan-to-value.
Rates start at 4.29% and are stressed at payrate. The range also includes a variable fee structure to increase affordability.
Three times faster
The firm says an extensive pilot of the process has shown that progressing to an offer is on average three times faster using these models than a standard application.
The business could issue an offer within 24 hours from the decision in principle in some cases.
Landbay has also found that using an AVM helps applicants save on average £500 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.
Landbay sales and distribution director Rob Stanton says: “There’s no question that in the current market, timing can make or break a deal.
“Brokers act with real urgency to support their landlord clients and there’s no reason why lenders shouldn’t be doing the same.
Landbay head of product Joel Vinnicombe adds: “Our extensive pilot ahead of the whole of market launch generated tremendous results, giving us the confidence that our automated valuation models provide significant benefits such as speed to offer and lower costs to borrowers.”
Mortgage Strategy – https://www.mortgagestrategy.co.uk/news/landbay-integrates-avms-to-speed-up-landlord-offer-times-and-lower-fees/
Read more from Landbay: https://www.bclear.co.uk/intermediaries-should-be-prepared-for-buy-to-let-business-the-intermediary/