Allica Bank opens up AVMs for higher LTVs and bigger loans
Allica Bank has increased the maximum loan to value (LTV) and loan size in its automated valuation model (AVM) within its bridging finance offering.
The challenger bank has upped the LTV limit to 75% from 70%.
At the same time, the maximum loan has doubled from £750,000 to £2m.
This means larger residential bridging deals can go through an AVM instead of a physical valuation.
The change saves costs for borrowers and helps brokers move faster for clients looking for property finance.
Residential bridging rates start from 0.69% at the lender, and the AVM is available for both residential purchases and refinances.
What mortgage and protection advisers should take from the FCA’s AI stance
Sponsored by Sesame Bankhall Group
The lender also offers below market value purchases for up to 90% of the purchase price, while title indemnity insurance is available as an alternative to full legal work.
All new applications submitted before 30 September come with 0.25% cashback for customers on the loan balance if completed by 31 October 2026.
Steve Palfreeman (pictured), head of sales – bridging finance at Allica Bank, said: “Speed and certainty are critical in bridging, especially for borrowers who need to move quickly when opportunity arises.
“Waiting for a physical valuation can add time they simply don’t have, which is why we’ve carried out extensive research comparing our AVM with physical valuations to understand where we can safely remove that step on eligible cases – saving valuable time for brokers and their customers.
He added: “We made this change in response to what brokers are telling us they need to support their clients: greater speed and certainty without unnecessary friction.
“Alongside this change, we’ll keep looking for practical ways to make it easier for brokers to get the right finance in place for their clients.”
