Allica raises AVM limit to £2m for residential bridging
Allica Bank has expanded the use of automated valuations across its residential bridging range, increasing the maximum AVM loan size to £2m and the maximum LTV to 75%.
Allica Bank has expanded the use of its automated valuation model across residential bridging, increasing the maximum loan size from £750,000 to £2m.
The challenger bank has also increased the maximum LTV available through the AVM route from 70% to 75%.
The changes mean more residential bridging cases can proceed without a physical valuation where they meet Allica’s criteria, with the bank saying this can reduce both cost and turnaround times for borrowers.
The AVM route is available for residential purchases and refinances, with no asset manager or physical inspection required on eligible cases.
Below-market-value purchases are also available up to 90% of the purchase price, while title indemnity insurance can be used as an alternative to full legal work.
The changes come as Allica said it is on track to complete £250m of bridging originations this year.
The bank also introduced a series of bridging changes in June, including a 0.03% rate reduction on loans above £750,000 for selected products, changes to its refurbishment finance range and a temporary cashback offer.
Applications submitted before 30th September can qualify for 0.25% cashback on the loan balance where completion takes place by 31st October 2026.
Steve Palfreeman, 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.
“Expanding AVM-based bridging to 75% LTV on loans up to £2 million means we can now offer that option on significantly larger residential bridging cases. For brokers, that means a simpler route through valuation on eligible deals, the potential to save costs for their clients and get them moving more quickly.
“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.”
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